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Supposedly, wholesale chicken wings are lower than pre-pandemic prices. https://www.nbcnews.com/business/consumer/chicken-wing-prices-cheaper-now-than-before-p

Supposedly, wholesale chicken wings are lower than pre-pandemic prices. https://www.nbcnews.com/business/consumer/chicken-wing-prices-cheaper-now-than-before-pandemic-rcna43601 https://www.nbcnews.com/business/consumer/chicken-wing-price... I've yet to find a restaurant, however, where menu prices for wings aren't at least 20% higher than 2019 or so -- often much higher. Similarly, I have a hard time believing that lower lumber prices will reduce new construction costs.

curiousllama 3y ago
Retail prices are generally pretty sticky - if the wholesale price persists, they'll come down, but it'll take time.
- quadrifoliate 3y ago
  I hope they come down -- I have reduced my restaurant spend considerably since restaurant (even chain) prices went up by 30-50% in my area compared to pre-Covid. Maybe I'm too price-conscious, but I'd expect demand to go down over time as the rising interest rates affect daily life.
  - curiousllama 3y ago
    Yea for sure. This is the recession & deflation folks have been asking for.
  - Analemma_ 3y ago
    It's not gonna happen. Labor costs determine the price of restaurant meals way more than wholesale food costs do. Those have gone up and probably are not ever coming back down; wages are a one-way ratchet in all but the most extreme circumstances.
  - listenallyall 3y ago
    I'm like you, however it sure seems that the proliferation of DoorDash and the rest proves that plenty of people are entirely price-insensitive. Expensive base prices + 20-30% in fees. Personally, I think there's a lot of overlap between heavy DD users and people on social media complaining publicly about how tough it is to make ends meet. Just a guess.
makestuff 3y ago
Yeah I agree, it will make prices stay flat for a few years, but I highly doubt there will be a massive decrease in construction cost unless we see another 2008 style economic crisis. Although, labor shortages in the construction industry might make still allow prices to stay high.
- superwalker 3y ago
  Labor prices for skilled labor have increased so much that even when you do the “how much is my time worth” calculation as an overpaid engineer, DIY has become the only way to go. It’s nuts, but a fun learning experience.
deleted 3y ago
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dessimus 3y ago
Not a lot of people are willing to work in the food service industry in general, nor at 2019 wages specifically, also rents, and real estate skyrocketed. Food costs are generally only about 1/3 of menu revenue, with wages and overhead being the other ~2/3. Profits are generally very thin in restaurants.
bdcravens 3y ago
The cost of labor to cook those chicken wings has gone up. (about 20% or so since 2020)
- listenallyall 3y ago
  But labor is, essentially, a fixed cost. Once a cook is working a shift, it costs the restaurant nothing extra (or a very small marginal amount) in labor to cook one additional order of wings. Most restaurants' problem is not the cost of labor, but the fact that expensive labor is idle much of the time. Lowering prices to increase volume would, in many cases, be a much better strategy, especially for a local restaurant which is starting out at a disadvantage compared to chains, which can purchase much larger volumes of food at lower prices.

curiousllama 3y ago

Retail prices are generally pretty sticky - if the wholesale price persists, they'll come down, but it'll take time.

quadrifoliate 3y ago
I hope they come down -- I have reduced my restaurant spend considerably since restaurant (even chain) prices went up by 30-50% in my area compared to pre-Covid. Maybe I'm too price-conscious, but I'd expect demand to go down over time as the rising interest rates affect daily life.
- curiousllama 3y ago
  Yea for sure. This is the recession & deflation folks have been asking for.
- Analemma_ 3y ago
  It's not gonna happen. Labor costs determine the price of restaurant meals way more than wholesale food costs do. Those have gone up and probably are not ever coming back down; wages are a one-way ratchet in all but the most extreme circumstances.
- listenallyall 3y ago
  I'm like you, however it sure seems that the proliferation of DoorDash and the rest proves that plenty of people are entirely price-insensitive. Expensive base prices + 20-30% in fees. Personally, I think there's a lot of overlap between heavy DD users and people on social media complaining publicly about how tough it is to make ends meet. Just a guess.

makestuff 3y ago

Yeah I agree, it will make prices stay flat for a few years, but I highly doubt there will be a massive decrease in construction cost unless we see another 2008 style economic crisis. Although, labor shortages in the construction industry might make still allow prices to stay high.

superwalker 3y ago
Labor prices for skilled labor have increased so much that even when you do the “how much is my time worth” calculation as an overpaid engineer, DIY has become the only way to go. It’s nuts, but a fun learning experience.

deleted 3y ago

[deleted]

dessimus 3y ago

Not a lot of people are willing to work in the food service industry in general, nor at 2019 wages specifically, also rents, and real estate skyrocketed. Food costs are generally only about 1/3 of menu revenue, with wages and overhead being the other ~2/3. Profits are generally very thin in restaurants.

bdcravens 3y ago

The cost of labor to cook those chicken wings has gone up. (about 20% or so since 2020)

listenallyall 3y ago
But labor is, essentially, a fixed cost. Once a cook is working a shift, it costs the restaurant nothing extra (or a very small marginal amount) in labor to cook one additional order of wings. Most restaurants' problem is not the cost of labor, but the fact that expensive labor is idle much of the time. Lowering prices to increase volume would, in many cases, be a much better strategy, especially for a local restaurant which is starting out at a disadvantage compared to chains, which can purchase much larger volumes of food at lower prices.