What Is Food Inflation?

Food inflation happens when food prices increase due to inflation. This typically happens because the cost to produce or transport food increases.

Why Does Increased Inflation Lead to Menu Changes?

Inflation can lead to menu changes as restaurants look to eliminate expensive ingredients from their menus or focus on higher margin items.

What Is a Restaurant Inflation Fee?

Some restaurants have added an inflation fee to their meals to try to hide the real cost of food. For example, instead of boosting the price of a $10 meal to $11, a restaurant might try to prevent sticker shock by adding a 10% inflation fee to each check.

This often backfires by angering customers who feel like they have been bait-and-switched.

Is Starting a Business During a Recession a Good Idea?

Starting a business during a recession can be risky, but if you can secure funding you may be able to benefit from lower demand for goods and a weaker labor market that gives you more choice when it comes to finding great employees.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

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