Baton Rouge restaurants and grocers struggle with food shortages, price hikes

As restaurants struggle to stay afloat amid the pandemic, juggling workforce shortages, health concerns and restrictions that limit the number of customers they can serve indoors, they’re also facing another challenge: rising food costs.

Due to supply chain issues, restaurant owners say they’re experiencing shortages and, in some cases, double-digit price increases.

“The supply chain problems are real,” says Brad Watts, who owns Kalurah Street Grill and Cecilia. “Our food costs are up 25 to 30 percent across the board.”

That’s one reason K Street didn’t reopen in late May, after offering takeout service in the early weeks of the pandemic shutdown.

Mestizo’s owner Jim Urdiales hasn’t seen his prices jump that much, but he estimates they’re up between 10% and 15% on average.

“Every week we have to make adjustments,” Urdiales says. “Skirt steak, for instance, is an item that’s really an important ingredient for us, and we were having trouble getting it. That can throw my entire food cost out of whack by $500 or $600 a week.”

Adding to the challenge: There’s no way to predict what item may not show up on a delivery truck. Earlier this week, the restaurant’s liquor distributor was out of a tequila Mestizo’s stocks and also one of its most popular wines.

“Every week we’re like, OK, what’s not coming today?’” Urdiales says.

Read on for the full story, which originally ran in Daily Report‘s July 14 edition. To keep up with Baton Rouge business and politics, subscribe to the free Daily Report e-newsletter here.