Whether it’s for goods, services or food, consumers are constantly hit with higher prices these days.

Inflation (and plenty of talk about inflation) began during the disruptions caused by COVID and has continued since, leading to changes in spending habits and a public weary of sticker shock as they go about their daily lives.

In lockstep with increased supply costs is a workforce that demands higher and higher wages, particularly throughout northern Michigan and especially in the service industry.

While virtually every business has been impacted by these increased costs, restaurants are in a particularly unenviable position. As costs for food and staff continue to grow, many are forced to choose from a slate of unattractive choices – raise prices, cut quality, reduce portion sizes or slash service.

Local restauranteurs know that figuring out the right balance is critical for short-term survival and long-term success.  

“It’s a ton of pressure,” said Jeff Libman, general manager of Amical in Traverse City. “You work very hard to put out quality product, make it look good and put it at a price that works for the business, but that also doesn't give the guests sticker shock, and that can be really hard.”

More importantly, one or two wrong moves could spell disaster in an increasingly competitive environment where already price-shy consumers have a ton of options.

“The real cost would be somebody telling you that your food is not good (or overpriced) and that they're not going to come back,” Libman said. “I love the first-time shopper… but what I really want and what we really need is the repeat. Getting the best quality is where it starts.”

The Traverse City Business News, (The Ticker’s sister publication) takes a close look at this issue in its August edition. In addition to this story, you’ll find a look at commercial real estate, a profile of a local delivery startup, and much more.

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