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How inflation is impacting restaurants across the U.S.

LEILA FADEL, HOST:

Inflation has pumped up food prices at the grocery store and in restaurants. So we spoke to restaurant owners across the country who sell regional classics to see how they're doing.

MICHEL MARTIN, HOST:

We start in Texas. Leonard Botello is the owner and pitmaster of Truth BBQ in Houston.

LEONARD BOTELLO: Beef is the hardest for us because that's like our gift and our curse. That's what we sell the most of, and that's what we make the least on.

FADEL: When Botello first opened a decade ago, he was selling brisket for $17 a pound. Now it's going for more than twice that - 36 or $37 a pound - and he still feels like he's underselling it.

BOTELLO: The brisket should honestly be at $45 a pound.

FADEL: Even though menu prices have climbed since the pandemic, Botello says he takes a lot less money home.

BOTELLO: It's very discouraging because then you're working for pennies on the dollar 'cause our margins are so slim.

UNIDENTIFIED PERSON #1: Thank you. No. 266.

MARTIN: In New York City, Jimmy Stathakis owns the five Manhattan locations of Bagel Market.

UNIDENTIFIED PERSON #1: No. 266. No. 268.

MARTIN: Before the pandemic, he sold a bacon, egg and cheese bagel for around $5.25. That breakfast bagel can now run customers - wait for it - up to $9.25.

JIMMY STATHAKIS: The cost of goods has gone through the roof. At one point a couple of months ago, we were paying $220 for a case of eggs.

MARTIN: Stathakis says every aspect of running his business has gone up from rent to electricity to insurance.

STATHAKIS: We used to be able to run stores at, say, 20% profit. Now we're hoping for 12.

UNIDENTIFIED PERSON #2: Hey. Sorry.

UNIDENTIFIED PERSON #3: No, it's fine.

UNIDENTIFIED PERSON #2: I'm going to also get the fish taco.

UNIDENTIFIED PERSON #3: Sure. We have...

FADEL: It's not much different in San Diego, the home of the California burrito with carne asada, cheese, guacamole, pico de gallo, salsa and french fries all wrapped up in a tortilla. John Rudolph owns Mike's Taco Club.

JOHN RUDOLPH: Sometimes I think, man, maybe it's better to work for a large corporation and you just have fewer stresses.

MARTIN: Before the pandemic, his California burrito cost under $11. Now it's 14.99. And he says other places charge as much as 20 bucks.

RUDOLPH: Man, that just seems kind of outrageous.

MARTIN: Rudolph says he feels fortunate owning a business with a great staff, but it's been increasingly difficult to keep up with the cost of doing business.

RUDOLPH: You're kind of on an escalator of expenses going up. There's really no end in sight.

FADEL: It's a challenge many restaurant owners across the country are facing and many consumers are feeling every time they go out for a bite.

(SOUNDBITE OF SONG, "EAT IT")

WEIRD AL YANKOVIC: (Singing) And just eat it. Eat it. Eat it. Eat it. Don't you make me repeat it. Have a... Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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[Copyright 2024 NPR]

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Federal funding is gone.

Congress has eliminated all funding for public media.

That means $2.1 million per year that Connecticut Public relied on to deliver you news, information, and entertainment programs you enjoyed is gone.

The future of public media is in your hands.

All donations are appreciated, but we ask in this moment you consider starting a monthly gift as a Sustainer to help replace what’s been lost.