WACO, Texas (KXXV) — Central Texas businesses report feeling the strain of rising food and labor costs highlighted in a new industry report.
- New report shows 88% of Texas restaurants face higher food costs and 66% face higher labor costs.
- Local Central Texas owners say rising expenses and declining traffic are impacting business.
- Industry leaders warn that cost pressures are making it harder for consumers to dine out.
Watch the full story here:
BROADCAST TRANSCRIPT:
“We were all sounding the alarm and hearing the same things, I think it’s been building and building and it finally hit,” said Kyle Citrano, Owner of George’s Restaurant and Bar.
A report from the Texas Restaurant Association shows 88% of Texas restaurants are facing higher food costs, and 66% are reporting higher labor costs.
But how are these rising costs affecting businesses here in central Texas? 25 News stopped by a few local spots to find out.
“It seems like right now because you have not only your rising food costs but your labor cost and just the cost in general to operate your restaurant, it’s a challenge and everybody is trying to look for a little bit of relief,” said Citrano.
Kyle Citrano, Owner of George's Restaurant and Bar, tells 25 News it’s something they’ve noticed over the last few months.
“September is a time where you are coming out of the summer and you expect to ramp up a little bit but it was a flatter September and we noticed it in our stores,” said Citrano.
The impact is also being felt in downtown Waco at Marie's Wine Bar.
“I have to be here more, there’s less hours on the weekly for employees. There’s situations where I can’t buy certain things that I would’ve normally bought because now I have to make those adjustments,” said Sidney Warren, Owner of Marie’s Wine Bar.
The same report finds 52% of Texas restaurants are also seeing a drop in customer traffic.
“Foot traffic is the most important thing, you can’t be valued if you don’t have the amount of people walking through the front door, you definitely feel that pinch when you don't have people,” said Citrano.
So how are our local businesses coping with these challenges?
“You have to go ahead and change as your market changes. We’ve priced where we think is fair to the customer and fair to us,” said Warren.
“ You have to look everywhere, you pinch pennies where you can but for us it’s about customer service and trying to take care of our customers on a day to day basis,” said Citrano.
That same report shows 23% of Texas restaurants are seeing fewer job applicants and acceptances.
