Rising Food Costs Could Hit Vacationers
April 30, 2008. Rising food costs might not just be a concern at home. Many people traveling this summer may notice higher prices at restaurants, too, as those establishments pass the cost of increases on to their patrons.
This could be a boon to the luxury vacation rental industry, as travelers seek to pare down their food bill by eating in. But it might also spell trouble for the restaurant industry, especially in seasonal tourist towns where profit margins are already small.
A recent article in the Arizona Republic told the stories of restauranteurs in Scottsdale-Phoenix, a major destination. Many agonized over the decision of whether to raise prices, fearing it would hurt their business. In that area, less expensive restaurants such as Denny's and establishments without waiters - and hence no tipping - began to fare well as patrons looked for cheaper solutions.
Rental owners may find that advertising their kitchen amenities could earn them some extra reservations this summer. Meanwhile, travelers may want to consider eating out just a little less, and paying a little more attention to prices when they do treat themselves.
