Rising labor and food costs are making it difficult for restaurant owners in the Cincinnati region, according to a May 1 report by WLWT. University of Cincinnati Lindner College of Business economics professor David Brasington said that these factors are putting pressure on those who run restaurants.
The topic is important as many local businesses struggle to remain open amid increasing expenses and economic uncertainty. The ability for new entrants to start restaurants adds further competition for resources such as ingredients, staff, and prime locations.
Brasington said that because it is relatively easy to enter the restaurant business, there is strong competition in the market. “It’s easy to get into this business, so there’s a lot of competition for price, quality, for experience,” he explained.
He also noted that food costs have increased dramatically and compared current challenges with those experienced during the COVID-19 lockdown period. Brasington said that ongoing economic uncertainty continues to make operating a restaurant especially challenging today.
Observers say these trends may continue as long as input costs remain high and market conditions stay unpredictable.
