Lunch Prices Rising – Lunchflation on the Rise!

Hey there, folks! I’ve got some news that might surprise you. It seems like the cost of lunch is going up, and it’s causing something called lunchflation. Let me break it down for you.

You see, the price of lunch is not what it used to be. Everything from the ingredients to the packaging is getting more expensive, and that’s making our lunches cost more too. It’s like a lunch price roller coaster!

But why is this happening? Well, there are a few reasons. One of them is that the cost of the ingredients themselves is going up. Farmers have to deal with things like bad weather and insect infestations, which can hurt their crops. This means there’s less food to go around, so the price goes up. It’s a tough situation for them, and it affects us too.

Another reason is transportation costs. Imagine trying to get your lunch from one place to another. You need to pay for gas, and maybe even tolls or parking. Well, it’s the same for the people who bring us our food. They have to pay for things like fuel and maintenance for their trucks. And when the cost of those things goes up, guess what happens? Yup, lunch prices go up too.

Finally, there’s something called processing costs. This is the cost of turning raw ingredients into the delicious lunch we enjoy. Think about all the steps involved: cleaning, chopping, packaging, cooking. Each of these steps requires time, energy, and resources. And as those costs increase, so does the price of our lunch.

So what can we do about it? Well, there’s not much we can do to control the cost of ingredients or transportation. But we can try to reduce the amount of food waste by only taking what we need. We can also look for ways to support local farmers and businesses, who often have lower prices. And finally, we can try to pack our lunch from home more often. That way, we have more control over what goes into our lunch, and we can save some money too.

Okay, my friend, now you know all about lunchflation. It’s a fancy word for something that affects us all. But with a little bit of awareness and some small changes, we can navigate the lunch price roller coaster and still enjoy a delicious meal.

Guess what? New research from payment provider Square just confirmed something we’ve all been noticing lately – the ‘lunchflation’ trend is real!

So why is the cost of lunch going up?

Well, it turns out that this trend is giving restaurant owners a hard time. They’re being forced to increase their prices to deal with rising costs. And who ends up paying for it? Us – the everyday folks who grab lunch during our work breaks. And let me tell you, the number of people doing that has skyrocketed since we all got back to work after the pandemic.

Square’s clever researchers dove into the sales data of popular lunchtime meals all across the United States. They wanted to figure out just how much we can expect to pay for our midday meals now that the pandemic is behind us. And you know what they found? Lunchtime food prices have shot up big-time in the past few months. No wonder we’ve all been feeling the pinch in our wallets!

So, what exactly is this lunchflation thing?

Have you ever noticed that the prices of our favorite lunchtime treats, like sandwiches and wraps, seem to be getting higher and higher? Well, there’s actually a term for it – lunchflation! It’s a fancy way of saying that the cost of lunchtime food is going up, and it’s been getting a lot of attention lately as more people start going back to work after the pandemic.

The people at Square, who know a thing or two about money, define lunchflation as when the cost of lunch items goes up faster than the cost of all other things we buy. Let me give you an example: from March 2020 to 2022, the average price of a wrap went up by 13%! Can you believe that? And tacos? Well, their price went up by a whopping 19%, going from around $5.43 to $6.48. Even burgers got in on the action, going from $10.15 to $11.10, a rise of 9%.

I’m amazed by how much prices for food have been going up lately, and it’s not just fast food that’s getting more expensive. Even a simple salad has seen a price increase from $9.44 in March 2021 to $10.32 in March 2022, which is a 9% rise. And soup prices have soared even higher, going up by a staggering 28%, from an average of $7.41 to $9.47.

What’s causing these price increases?

Experts have figured out that the rising costs faced by restaurant owners are to blame. Things like the cost of labor and ingredients for meals have gone up, and the owners are passing those expenses on to us, the customers, by raising prices. And this isn’t just happening in the United States. It’s a worldwide trend known as lunchflation. Even in places like South Korea, the price index for dining out has gone up by 6.6% since April 2021.

I, Bryan Solar, the Head of Restaurants at Square, want to address a pressing issue: restaurants have been hit hard in recent years. They face increased costs due to labor shortages and supply chain limitations. While technology can provide solutions, it’s crucial to remember that strong relationships with customers are vital for a restaurant’s survival.

Beating Lunchflation

After conducting thorough research, Square has come up with ways to combat the challenge of lunchflation. We suggest that restaurants offer convenient features like online ordering and self-serve options through QR codes. Additionally, partnering with third-party services for local and flat-rate delivery can boost operational efficiency and result in cost savings. These savings can then be passed on to customers, ensuring they get the best value for their money.

When it comes to restaurants, they can really boost their sales by catering to different customer preferences in how they order and pick up their food. For example, they can provide options like using QR codes at the table or allowing customers to pre-order online. By doing this, they can make sure to meet the needs of their customers while keeping costs down.