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Chicken Thigh Prices and Their Impact on Restaurant Business

Market Trends

Chicken thigh prices have been on a steady upward trend in recent years due to several factors:

  • Increased demand
    Chicken thighs are a popular menu item due to their versatility and affordability.
  • Supply chain disruptions
    The COVID-19 pandemic and other global events have disrupted supply chains, leading to higher transportation and labor costs.
  • Rising feed costs
    The cost of corn and soybeans, which are used to feed chickens, has also increased.

    • Impact on Restaurant Business

    The rising cost of chicken thighs has a significant impact on restaurant businesses:

  • Increased food costs
    Chicken thighs are a major ingredient in many dishes, so their higher price directly increases the cost of goods sold (COGS).
  • Reduced profit margins
    With higher COGS, restaurants must either increase menu prices or reduce portion sizes to maintain profitability.
  • Menu adjustments
    Some restaurants may consider removing chicken thigh dishes from their menu or replacing them with cheaper alternatives.

    • Strategies for Managing Chicken Thigh Prices

    To mitigate the impact of rising chicken thigh prices, restaurants can implement the following strategies:

  • Negotiate with suppliers
    Establish strong relationships with suppliers and negotiate favorable pricing.
  • Explore alternative suppliers
    Consider sourcing chicken thighs from multiple suppliers to find the best deals.
  • Use chicken thigh substitutes
    Consider using other cuts of chicken, such as breasts or drumsticks, which may be more affordable.
  • Optimize portion sizes
    Adjust portion sizes to reduce the amount of chicken thigh used per dish.
  • Increase menu prices
    If necessary, increase menu prices to cover the increased cost of ingredients.
  • Promote value-added dishes
    Offer dishes that feature chicken thighs in combination with other ingredients, such as vegetables or sauces, to enhance their perceived value.

    • Long-Term Outlook

    The long-term outlook for chicken thigh prices is uncertain. However, industry experts predict that prices will remain elevated for the foreseeable future due to ongoing supply chain challenges and rising feed costs.

    Conclusion

    Rising chicken thigh prices pose a significant challenge for restaurant businesses. By implementing effective strategies, restaurants can mitigate the impact on their profitability and continue to offer customers affordable and delicious chicken thigh dishes.

    DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Kwick365 does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Kwick365 does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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