Food away from home rose less than supermarket food prices amid rising inflation - Estadão

Food away from home rose less than supermarket food prices amid rising inflation – Estadão

Eating at home is so expensive that going to restaurants is relatively cheap. According to data from Brazilian Institute of Geography and Statistics (IBGE)a inflation Food at home is up 11.8% in the year to July, while food out is up 4.6% — a distance of 7.2 percentage points. The difference is no greater than that recorded in 2020, when social distancing was imposed COVID-19 Restaurant emptying and overeating at home rose by 18.15% and in bars and restaurants by 4.78%.

Taking into account since the beginning of the epidemic, the cumulative inflation of food at home has reached 43%. Outside the home 17.4%. This difference occurs because businesses are unable to pass on the cost increase, says CEO of Brazilian Association of Bars and Restaurants (Abrasel)And the Paulo Solmuschi.

“With contract income, it’s hard to pass prices. People are screwed. We have raised less than half of the inflation back home,” he says.

According to a survey conducted by the authority, 46% of establishments raised their prices below the inflation rate in July, while 25% were not even able to adjust it. Another 27% followed inflation and 3% raised prices outside the index.

In the case of the restaurant wooden spoonIn northern São Paulo, the price of a kilo of food before the pandemic was R$59.90. Today, it is at R$62.90, which means a 5% increase in the period it was Broad Consumer Price Index (IPCA) It rose 17.4% and food overall 35%.

It is not possible to pass on the increase in food prices to the consumer, says Silva, a restaurant manager in northern São Paulo.
It is not possible to pass on the increase in food prices to the consumer, says Silva, a restaurant manager in northern São Paulo. take photo: Werther Santana / Estadao

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restaurant manager , Leonardo André Teodoro Silva, states that differences in product prices cannot be tracked. “In a sentence, a pineapple today is R$4.99, but it will be R$6.99 tomorrow. It always increases. If we go up like that, we will break.”

Use reserves to maintain operation

Marcos MorettiColher de Pau, the owner of restaurateurs, says he only managed to survive the pandemic because he had a reservation he had kept to renovate the restaurant. However, all the money was used in the institution so as not to close its doors.

Also, according to Moretti, the restaurant could not turn a profit. Since March, at least, it’s closed at zero to zero. However, the intention is to attempt a 3.2% adjustment in September. “I still need to know what will happen when it increases.”

The Abrasel boss says that, as with Colher de Pau, restaurants have tried to reverse the trend in recent months. Since May, the conversion by institutions has exceeded the IPCA, albeit not enough to recover what has been lost since the beginning of the year.

“We are excited about the second half, because inflation is slowing down and this is saving money for the middle class. Another point is Brazil Aidwhich also favors consumption,” says Solmushi.

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Also, according to the executive, the restaurants hit hardest are those frequented by middle-class consumers. He explains that those serving the population most in need have already felt the positive effects of the release of R$600 in aid.

The Economist Marcio MilanGive Consulting trends, also states that inflation variance at home and away from home should decrease in the coming months. According to Milano, food at home is usually more sensitive to commodity prices and shipping, for example, because transportation is usually direct.

So, while the rise in food prices at home should slow, the rise in restaurant prices could gain traction. “There has to be an increase in demand for this service, even because of Auxílio Brasil,” he says, referring to the government subsidy program, which created a monthly R$600 per month through December.

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