If you get the sneaking suspicion that prices have gone up at your favorite restaurant, chances are they have.
Particularly in the years since the recession began, restaurants have absorbed rising costs instead of passing them on to their customers for fear of losing business.
Now, facing steeply rising commodity prices and the high cost of gasoline, restaurants are finally raising menu prices.
And it's a trend that probably will continue in all parts of the restaurant business, from fast food to fine dining.
"We've already increased our prices," said Anand Saha, owner of Mozart's Bakery & Piano Cafe, with locations in Clintonville and at the North Market. "We had to. Prices at my suppliers have gone up by 30 to 40percent."
via www.dispatch.com
Daily demand and supply: Increases in input prices decrease supply of the output and raise prices (and lower quantity demanded).
