August 21, 2020 · 12:26 pm

Food Prices

Let’s think about what’s been going on with food prices this Foodie Friday. I do the bulk of the food shopping so I might be more attuned to both the food supply and food prices than many of you, I get that. However, this is something that affects us all (unless you don’t eat, which is another issue altogether).

You’ve probably noticed that your grocery bills have gone up steadily over the last six months. That’s been due to the pandemic. You’ve read about the problems in meat processing plants as well as shortages of many other items due to supply chain disruptions and the shift from many of us working in an office (and eating meals away from home) to working at home (where we’re supplied by grocery stores). You’ve probably also recited the “supply vs. demand” mantra to yourself as prices rose, as the supply of some food items diminished, and the demand grew.

What you might not realize is that many of those issues have gone away. Have prices fallen? Not so much although they are down a little from their peak. As an NBC News article said:

Pandemic grocery prices shot up like a rocket and fell like a feather, even after supplies recovered. While the average price of ground beef was down by over 9 percent last month, shoppers are still paying nearly 13 percent more than they did in January.

Do I think it’s all price gouging or companies taking advantage of a horrible situation? No, not all of it, but you can’t help but wonder why prices for many items that are in abundant supply remain high. An analysis of consumer price index data for February through June, conducted by 24/7 Wall St., is shedding some light on the exact items that are driving up your grocery spending the most. According to the analysis, you’ll find that foods like dried legumes, peanut butter, ham, and potatoes have seen a price increase of 7% or more. However, the five items that top the price-growth list are mostly found in the meat aisle. Hot dogs, chicken, pork chops, and most beef cost quite a bit more than they did pre-pandemic even though, based on what I see in the stores I patronize (and supported by the data I could find), the shortages are pretty much over.

I think we’re all aware of the unemployment situation and the fact that the support system for those folks who’ve been fired or furloughed is shaky at best. Food insecurity has been a problem in this country pre-pandemic and it’s only been exacerbated. I also get that many variables go into establishing the price of foods in grocery stores, including costs to the grower, the processor, the manufacturer, the distributor, and lastly, the retailer. Increases in food prices are driven by dozens – if not hundreds – of different factors. But I also see that the food producer stocks are doing pretty well, and they’re still paying dividends. Maybe now is the time for them and others in the food chain to think about putting the customers ahead of shareholders, at least in the short term? Is taking a short-term hit or foregoing a dividend a fair price for supporting your customers and building goodwill?

Now, ask yourself a similar question.

Leave a comment

Filed under food, Thinking Aloud

Tagged as , , , ,

August 19, 2020 · 4:09 pm

Silver Linings?

School is starting this week in many places. Here in North Carolina, counties have a few different options with respect to virtual learning versus in-person learning versus a combination of the two. My county has elected virtual learning to start, as have many other counties around here. Many of the local universities have elected to bring the kids back to campus for in-person education and it’s not going well. So badly, in fact, that they’ve had to curtail classroom work completely while they rethink the situation.

Rethinking is what many educators are doing these days, as are many businesspeople. I find that to be a silver lining in the midst of this horrible pandemic. What strikes me is that much of this same rethinking has been going on for quite some time but it’s taken the pandemic to bring about the changes. Online education isn’t new and it’s been possible to get degrees from accredited schools for years. Shifting public school education to the online environment is new, however. I know there are a lot of reasons why it hasn’t happened until now – teacher unions, the need for working parents to have “daycare” for their kids, food insecurity (kids get fed at school), and many other reasons. The pandemic – a situation in which people are losing their lives – has forced those other reasons to the background. I think education and our communities will come out of this stronger and more accessible as the issues that prevented the evolution of education are handled from a new perspective.

Think about the film industry. There has been a major disruption in the business and I think much of the disruption is permanent. Theaters are closing and the major chains are in deep financial trouble. Major studios’ investments are tied up in films that should have been released months ago. Everyone is still watching movies, but they’re streaming them. Is this new? Of course not, but having the powers that be in the film industry take a look at how they do business is directly attributable to the pandemic.

The most significant change in the entire industry occurred late in July when AMC Theaters and Universal agreed to shorten the theatrical ‘window’ (the length of time that a movie has to play in a theater). Previously, it was 90 days. Obviously, studios will keep their biggest blockbusters in theaters as long as they’re attracting customers. But now, Universal can transfer its less-lucrative films to rental platforms, like iTunes or Amazon, after 17 days. Other studios, like Warner Brothers, are moving some of its titles to digital-only exclusives, while Paramount and Sony are selling off a portion of their movies directly to Netflix and Amazon.

Disney is releasing their live-action “Mulan” via Disney+. You’ll pay $30 to watch it but if you’d have been taken the family to the theater to see it, that’s a bargain, especially since you can re-watch it as often as you like. How much money this generates (“Mulan” was projected to bring in more than $1 billion at the box-office) will be fascinating. There isn’t much doubt in my mind, however, that making films more accessible and less expensive is a silver lining.

Those are just two areas where I find silver linings. You?

Leave a comment

Filed under Thinking Aloud, What's Going On

Tagged as , , ,

August 14, 2020 · 4:00 pm

My Signature Dish

Foodie Friday and it’s time to plan out the weekend. I’ve got some friends arriving during the week and they’ve already asked for some very specific things to eat. Not because they’re picky eaters but because I’ve served them before and they seem to consider these things as signature dishes of mine.

If you watch “Beat Bobby Flay” on the Food Network, the heart of the competition is when a chef names his or her signature dish and competes against Bobby who tries to improve on the chef’s version. Sometimes Bobby does just that, usually by making it his own. He’ll add some different spices or honey. He’ll plate it more attractively or top it with a relish that brings out the dish’s flavor. When you think about it, Bobby is altering the chef’s signature to make it HIS signature. It’s not forgery; it’s uniquely his.

That’s something each of us should be asking ourselves about our own business. First, what’s MY signature dish? What do I make in a way that is truly mine? No chef walks on Bobby’s show and announces some dish that the chef has made up. It’s always something standard – bouillabaisse, green chicken curry, veggie burgers, or any one of hundreds of things you can find on many menus. The chef is known for cooking it in their own unique way. What are you known for that may be done by others but not as well or as uniquely as you?

If you can’t really answer the question, that might be something you want to spend some time and develop. When you’re basically a commodity, you have very little room to compete on anything but price. If market demand is overwhelmingly high, you’re fine. When it’s not, you’re in trouble.

Your signature dish is you. It represents your style and identity. It becomes a part of how others see you. If your business doesn’t have one, you need to get in the proverbial kitchen and get to work developing one. Sooner rather than later, please!

Leave a comment

Filed under Consulting, food, Helpful Hints

Tagged as , , , , , ,