Restaurants in Shreveport and Bossier are grappling with escalating food prices, forcing both owners and diners to make difficult decisions. The National Restaurant Association reports that the restaurant and food industry is Louisiana’s third-largest private employer, accounting for $17.3 billion in sales and 198,400 jobs statewide. With rising costs impacting everything from ingredients to utilities, many establishments are struggling to remain viable.
Food prices have surged consistently over the past five years. According to the Bureau of Labor Statistics, grocery prices have increased by 29% since February 2020. A recent interactive chart from the St. Louis Federal Reserve highlights the dramatic spike in the price of ground beef, which rose from $4.73 per pound in 2020 to $6.32 in September 2023. This increase, exceeding 50%, raises concerns about the sustainability of local dining options.
Challenges Faced by Local Restaurants
At Noble Savage, a restaurant located at 417 Texas St. in Shreveport, co-owner Shilpan Patel is feeling the pressure. The establishment has enjoyed some recent successes, including chef Jasmine Cherry being selected as one of three top chefs for the upcoming Louisiana Food Prize Golden Fork competition. However, Patel is concerned about maintaining profit margins, which typically hover around 5% to 8%.
Patel notes that the cost of rib-eye steak has skyrocketed from $12.98 per pound earlier this year to $19.98 now. “Across the board, we’re probably seeing 20% more if you’re still using the same vendors you always use,” he explained. The restaurant is absorbing some of these cost increases, but Patel emphasizes that this does not equate to higher profits; rather, it often leads to lower earnings.
The impact of rising prices extends beyond the kitchen. Higher operational costs are affecting tips for waitstaff and influencing staffing decisions. As fewer diners frequent restaurants, owners face challenges in retaining employees. “Good help is hard to find already,” Patel stated. “If you cut their hours, they’re going to go somewhere else.”
Diners Adapt to Price Increases
Local patrons are adjusting their dining habits in response to rising costs. Cole Evensky, a 29-year-old medical resident in Shreveport, typically dines out two to three times a week. While he has not reduced his frequency of eating out, he has become more conscious of the costs. “When splitting checks with friends, it’s more common now to ask for immediate payment rather than waiting for a future meal,” he said.
In contrast, Steve and Susan Stewart, a couple from Benton, have noticed a shift in their dining frequency. They typically eat out two to three times a week, down from four times. “With food prices being higher like they are now, it’s not as feasible to go out like we used to,” Steve remarked. They are now more inclined to look for specials, such as promotional deals, to manage their dining expenses.
Another Shreveport resident, Dominique Roberson, reports dining out about twice a week, a decrease from her previous routine of four to five times before the pandemic. She has observed that her family has become more budget-conscious due to rising food costs. “If money were no object, I would let someone else do the cooking regularly,” she admitted, expressing concern about the sustainability of current economic conditions.
As restaurant owners and patrons navigate these challenges, the future of dining in Louisiana remains uncertain. With costs continuing to rise while wages do not keep pace, both sides are left to wonder how long they can sustain their current routines. The ripple effects of these price increases may significantly shape the local culinary landscape in the months to come.
