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    The Latest on Food Prices

    The Latest on Food PricesNelson D. SchwartzReporting on economicsPrices of meat, poultry, fish and eggs in U.S. cities are up 15 percent since the start of 2020, according to the Bureau of Labor Statistics. Steak, ground beef for hamburger, and turkey are especially costly. The increases are due to supply chain shortages and higher labor costs and there is little relief in sight. In fact, some economists think prices could rise even more, given the increase in energy prices. More

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    Higher Food Prices Hit the Poor and Those Who Help Them

    Many households are being forced to adjust their shopping lists or seek assistance. But food banks, too, are feeling the pinch.With food prices surging, many Americans have found their household budgets upended, forcing difficult choices at the supermarket and putting new demands on programs intended to help.Food banks and pantries, too, are struggling with the increase in costs, substituting or pulling the most expensive products, like beef, from offerings. What’s more, donations of food are down, even as the number of people seeking help remains elevated.Even well-off Americans have noticed that many items are commanding higher prices, but they can still manage. It’s different for people with limited means.“Any time someone is low income, that means they’re spending a higher percentage on needs like food and housing,” said Diane Whitmore Schanzenbach, director of the Institute for Policy Research at Northwestern University. “When prices go up, they have less slack in their budgets to offset and they are quick to fall into hardship.”Before the run-up in prices — driven by supply-chain knots and rising labor costs — Robin Mueller would buy ground beef for meatloaf or hamburgers to serve once or twice a week for her family in Indianapolis. Now she can afford to cook it only once or twice a month.“You have to pick and choose,” said Ms. Mueller, who is 52 and disabled and lives with her daughter and her husband. “Before, you didn’t have to do that. You could just go in and buy a week or two’s worth of food. Now I can barely buy a week’s worth.”She has turned to food banks in Indianapolis for help, but they, too, are feeling the pinch.A case of peanut butter that was $13 to $14 before the pandemic now costs $16 to $19, according to Alexandra McMahon, director of food strategy for the Gleaners Food Bank of Indianapolis. Green beans that used to retail for $9 a case now sell for $14.“It has a big impact,” said Joseph Slater, chief operating officer of Gleaners. “It’s on our minds and it’s on the minds of our hungry neighbors as well.”In New York, Tynicole Lewis and her daughter, Lanese, depend on food stamps, but Ms. Lewis said that the aid runs out well before the end of the month now. Lanese is diabetic and Ms. Lewis serves as much protein and vegetables as possible — foodstuffs that have become especially pricey.“Food is expensive, and when the food stamps are gone, they’re gone,” said Ms. Lewis, who lives on the Lower East Side of Manhattan and earns $12,000 a year as a grocery store worker. “I have to wait.”She, too, depends on food pantries and has given up buying meat for the most part. “I eat a lot from the pantry, whatever they get,” Ms. Lewis said. “I like fish and I’ll treat myself when I get the food stamps.”While overall consumer prices in September were up 5.4 percent from a year ago, the cost of meat is up slightly more than that. Prices of staples like dairy products, fruits, grains and oils are also rising.Prices of meat, poultry, fish and eggs in U.S. cities are up 15 percent since the start of 2020, according to the Bureau of Labor Statistics.The run-up in costs at the supermarket comes even as gasoline prices have risen and natural gas and heating oil prices are predicted to be higher this winter, putting further pressure on those with low incomes.In addition, the mammoth assistance programs rolled out by the federal government in response to the pandemic in 2020 have largely lapsed. While some households built up savings from government payments, others have little room for extra expenses.The forces behind higher food prices have been building for some time and aren’t going away anytime soon, said Michael Swanson, chief agricultural economist at Wells Fargo.“People are shocked, but this is a slow-motion train wreck,” he said. “The scary thing is that food companies haven’t passed along all of their costs yet.”The warehouse at the Gleaners Food Bank.Kaiti Sullivan for The New York TimesHigher transportation and warehousing expenses lead the list of causes, along with rising labor costs at meat processing centers and other nodes in the food supply chain.To be sure, there are some winners as a result of the cost squeeze. While meat prices are up sharply for consumers, prices for cattle and other livestock haven’t moved as much. The result is buoyant profits for beef processors, Mr. Swanson said.“This is not going to go backwards anytime soon,” he added. “As soon as producers and retailers get these price increases, they are very sticky.”Behind the scenes, logistics expenses have jumped even more sharply than prices for foodstuffs, along with the costs of unglamorous items that few gave much thought to a few years ago.Understand the Supply Chain CrisisCard 1 of 5Covid’s impact on the supply chain continues. More

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    Pizza Was the Restaurant Hero of 2020

    #masthead-section-label, #masthead-bar-one { display: none }At HomeMake: BirriaExplore: ‘Bridgerton’ StyleParent: With ImprovRead: Joyce Carol OatesCredit…Tony Cenicola/The New York TimesSkip to contentSkip to site indexPizza Was the Restaurant Hero of 2020Its ease and affordability made it a pandemic staple for many families and a rare bright spot in an industry that has been decimated.Credit…Tony Cenicola/The New York TimesSupported byContinue reading the main storyFeb. 12, 2021, 10:31 a.m. ETA few times a week, Elizabeth Reninger ambles to a pizza restaurant near her job for lunch. She orders the same thing every time: a cheese slice and fries for $6. For a little adventure, she sprinkles on some Parmesan and red pepper flakes.Before the coronavirus pandemic swept across the country, Ms. Reninger, a criminology student at Northern Arizona University who also works at a dog day-care facility, estimated that she ate pizza only once every couple of months. That changed late last summer when she strolled into a Slice and Ice pizza parlor.“Maybe the warm, gooey cheese is some sort of comfort food for me with the pandemic,” Ms. Reninger said. “I go a couple of times a week, maybe three times some weeks, which is kind of embarrassing.”For many Americans, pizza has been a perfect pandemic option, a comfort food for a time that is anything but comfortable. Whether a thin-crust version topped with fresh vegetables or a stuffed-crust pie piled high with sausage and pepperoni, pizza has checked many boxes during these strange times, primarily because it travels well and can easily feed — sometimes fairly inexpensively — an entire family. Over the first nine months of 2020, the combined revenue of Domino’s and Papa John’s grew so much that it was roughly equivalent to their selling about 30 million more large cheese pizzas than they had the year before.In a year when restaurants across the country have struggled to stay afloat, with many unable to cover rent payments and pay employees because of government-mandated shutdowns, those that dished up pizza have generally fared better. Sales of pizza grew as much as 4 percent last year, according to Technomic, a food industry research and consulting firm. Pizza and chicken are the only foods categories expected to have grown.“The pizza category as a whole was a big winner,” said Sara Senatore, an analyst who covers restaurants at Bernstein. Ms. Senatore noted that it may have become a go-to meal for families that found themselves on a tight budget because of falling wages or lost jobs.(Le) Brix Pizza and Wine in Denver opened as a French brasserie but quickly pivoted, temporarily, to pizza to accommodate the demand for delivery foods.Credit…Benjamin Rasmussen for The New York TimesFor large pizza chains like Domino’s, Pizza Hut, Papa John’s and the privately held Little Caesars, the pandemic proved to be a sales boon. The four controlled 43 percent of the $44 billion U.S. market heading into the pandemic, according to Technomic. Some analysts say the big chains, most of which have not reported fourth-quarter earnings yet, almost assuredly gained more market share because their size allowed them to better navigate issues like paying rising prices for cheese and other ingredients, hiring additional help or covering rent after particularly lean weeks than independent pizza parlor owners.For the first nine months of last year, combined revenues at Domino’s and Papa John’s increased almost 12 percent, or $434 million. Pizza Hut’s revenues for the same period were down a tad from 2019’s levels. The chain was in the midst of a turnaround plan when it had to deal with Covid-related closings and restrictions at its dine-in restaurants across the country. Even frozen pizza performed well during the pandemic, with sales climbing nearly 21 percent to more than $6 billion, according to NielsenIQ.“Pizza was the perfect food for the pandemic, but I think it’s also the perfect food for all time,” said Ritch Allison, the chief executive of Domino’s, which saw double-digit increases in same-store sales in the United States, starting last spring. In the past year, Domino’s stock has soared 40 percent, to $385 a share. In the fall of 2008, it traded at a low of $3.“We entered the pandemic in a fortunate position,” said Mr. Allison, noting that the company had a robust delivery service and had invested in its digital capability over the past decade.(Le) Brix is considering continuing the pizza operation even after the pandemic ends. Credit…Benjamin Rasmussen for The New York TimesJeff Schwing keeps the pizza oven going. The co-owners built it over Thanksgiving weekend.Credit…Benjamin Rasmussen for The New York TimesStill, as demand soared during the pandemic, Domino’s rushed to hire 30,000 people; ramped up its production of the fresh dough that is sent to all of its locations; and faced occasional shortages of ingredients as meat producers shut down because of coronavirus outbreaks in their facilities. Television commercials, which normally take months to plan and shoot, were reshot in a matter of days so they could feature drivers wearing masks as they made deliveries.Mr. Allison said his company had also become quite nimble in responding to pandemic customer behaviors. When it noticed cheeseburgers and tacos were also popular pandemic options, it quickly created two specialty pies: cheeseburger and chicken taco. Both become hot sellers, Mr. Allison said.“My new favorite is the chicken taco, and I add extra jalapeños to give it some zip,” he added.The pandemic has been devastating to the restaurant industry over all. Last year, more than 68,000 restaurants closed permanently, with buffets, French bistros, and soup and salad spots being among the hardest hit, according to Datassential. But 11,000 restaurants opened during the pandemic. Pizzerias led the way, with nearly 2,000 openings.Justin Morse and his partners had hoped to be serving their version of escargots (served in little ramekins with saltine crackers) and steak frites to diners when they opened Brasserie Brixton, a cozy, 45-seat French bistro in Denver, in July. But they became increasingly nervous as dining restrictions in the city expanded in the late fall, and they found themselves unable to apply for government relief programs like the Paycheck Protection Program because they could not show a history of lost revenue.Mr. Morse and his co-owners knew they had to focus on delivery. Realizing that items like French onion soup do not travel particularly well, they did an about-face. Over Thanksgiving weekend, they built and installed a wood-fired pizza oven.The partners in (Le) Brix Pizza and Wine, from left: Amy Keil, Justin Morse and Nicholas Dalton. Mr. Morse delivers the bulk of the pizzas himself.Credit…Benjamin Rasmussen for The New York Times“What industry is already set up for delivery and takeout? Pizza,” Mr. Morse said. “We said, ‘Let’s mimic an industry that people are already comfortable with in terms of delivery and takeout.’” While their restaurant, temporarily renamed (Le) Brix Pizza & Wine, offers a classic Margherita pizza, it also sells pizzas with French flair. One comes with white anchovies and thyme and another with potato, crème fraîche and rosemary.“We’re not selling enough pizzas to cover all of the costs, but it’s better than the alternative,” said Mr. Morse, who delivers the bulk of the pizzas himself. He said the group hoped to return to French fare in a few months, but was considering continuing the pizza business at a different location.Mr. Allison of Domino’s said he believed that demand for pizza would remain robust even after the pandemic ended.“We’ve been given the opportunity to serve a lot of new customers during the pandemic who had never ordered from us or not ordered in a long time,” he said. “We hope we’ve done a great job to serve them and that they become loyal customers.”AdvertisementContinue reading the main story More

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    Uber, After Buying Postmates, Lays Off More Than 180 Employees

    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesVaccine InformationTimelineWuhan, One Year LaterAdvertisementContinue reading the main storySupported byContinue reading the main storyUber, After Buying Postmates, Lays Off More Than 180 EmployeesThe layoffs include most of the executive team at Postmates, the food delivery app that Uber bought last year.Uber bought Postmates last year for $2.65 billion. Food delivery has been crucial to Uber as its ride-hailing business has been hurt in the pandemic.Credit…Justin Sullivan/Getty ImagesJan. 23, 2021, 7:42 p.m. ETSAN FRANCISCO — Uber on Thursday laid off roughly 185 people from its Postmates division, or about 15 percent of Postmates’ total work force, said three people with knowledge of the actions, as the ride-hailing giant consolidates its food delivery operations to weather the pandemic.The layoffs affected most of the executive team at Postmates, including Bastian Lehmann, the founder and chief executive of the popular food delivery app, said the people, who spoke on condition they not be named because they were not authorized to speak publicly. Uber bought Postmates last year for $2.65 billion.Some Postmates vice presidents and other executives will leave with multimillion dollar exit packages, the people said. Some employees may also see reduced compensation packages, the people said, while others will be asked to leave or serve out the end of their contract positions, which could lead to more exits in coming months.The cuts are part of a larger integration of Uber’s food delivery division, Uber Eats, with Postmates. While the Postmates brand and app will remain separate, much of the behind-the-scenes infrastructure will be melded with Uber Eats and supported by Uber Eats employees. Pierre Dimitri Gore-Coty, the global head of Uber Eats, will continue running the combined food delivery business, the people said.An Uber spokesman, Matt Kallman, confirmed the cuts. “We are so grateful for the contributions of every Postmates team member,” Mr. Kallman said. “While we are thrilled to officially welcome many of them to Uber, we are sorry to say goodbye to others. We are so excited to continue to build on top of the incredible work this remarkable team has already accomplished.”Food delivery has been crucial to Uber as its ride-hailing business has been severely weakened by the pandemic’s effects on travel. Dara Khosrowshahi, Uber’s chief executive, has pointed to food delivery as a bright spot; last year, Uber Eats’ revenue overtook the revenue from the ride-hailing business for the first time as people ordered more meals delivered to their homes.Uber, which loses money, laid off hundreds of employees in 2019 as it tried to get costs under control. The company currently has more than 21,000 full-time employees; its drivers are independent contractors.While Uber has been strong in food delivery, it has had to fend off deep-pocketed rivals that have sought to gain market share by subsidizing delivery costs with promotions and discounts.DoorDash, which went public in December, has rapidly expanded over the past few years and has acquired the smaller food delivery start-up Caviar. Other significant competitors include Just Eat Takeaway, which beat out Uber to acquire Grubhub last year for more than $7 billion, and Deliveroo, a delivery company that is popular in Europe.Uber has trimmed other businesses in hopes of becoming profitable by the end of this year. In December, it shed its autonomous vehicles division, Uber ATG, and jettisoned its flying car operation, Uber Elevate. Both efforts were costly.AdvertisementContinue reading the main story More