Inflation Takes Bigger Bite Out of Restaurants’ Narrow Profits

Prices at the pump aren't the only thing going up. There's a good chance your next dinner on the town is likely to cost you more as well.

Prices at the pump aren’t the only thing going up. There’s a good chance your next dinner on the town is likely to cost you more as well.

Instead of cleaning up, local restaurants like Chacho’s in Morgan Hill are paying up. Inflation is suddenly taking an even bigger bite out of their already narrow profits.

“A case of limes, a month ago was $39 to $42, now they’re $100, for limes,” said owner Jorge Sanchez. “More than double, just limes. Something that we really make no money on, it’s just a garnish.”

As costs go up, restaurants are passing the cost to customers. 

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