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Cost of living crisis: WA wholesaler New West Foods warns of ‘complete storm’ of food, pushes pub prices up

Washington state’s largest independent food distributor expects further price hikes at favorite pubs, restaurants and, ultimately, supermarkets as supply chain pressures and skyrocketing input costs continue to push prices higher. warned the person.

The price of vegetable oil, which New West Foods supplies to hundreds of eateries across WA, has nearly doubled since August 2020, while eggs have risen 75% in the same two years.

Salmon rose 50%, while cheese and bacon each rose about 35%.

Even humble frozen chips, a staple on takeout menus everywhere, were up 25%.

camera iconThe size of the price increase over the last two years. credit: Western Australian

Most of these price increases are due to a myriad of factors combining to create what Damon Venousos, managing director of New West Foods, described as a “perfect storm” for food costs. , has occurred in the last 12 months.

Venoutsos described distribution businesses like his own as “canaries in coal mines” because unlike supermarkets and fast-food chains, they don’t have long-term contracts with their suppliers.

“In most cases, suppliers give us 30 days’ notice that prices are going up, but large retailers (such as Coles and Woolworths) and quick-service restaurants (such as KFC) keep prices up for up to six months. I can fix it,” he said.

“You never know when[supermarkets]will catch up, because they often use the exact same suppliers, but it is inevitable that they will have to catch up.”

Cost of living crisis: WA wholesaler New West Foods warns of ‘complete storm’ of food, pushes pub prices up

Source link Cost of living crisis: WA wholesaler New West Foods warns of ‘complete storm’ of food, pushes pub prices up

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