In a bid to counter rapidly rising prices, restaurants might also have to reduce portion size.
Looking down at your plate, do you feel a little bit cheated? The meals at American restaurants are definitely getting smaller; it is not just a fiction of your imagination. Call it shrinkflation: when a meal or product’s size decreases while its price remains the same or increases sometimes.
“Shrinkflation,” or the paring down of serving sizes to offset higher costs, is a hallmark of inflationary environments such as the one the US is currently experiencing. It’s on the rise, and it has gotten so noticeable that consumers are venting about it online.
Review website operator Yelp Inc. explained in a new report monitoring economic activity for the second quarter of 2022. Shrinkflation, a combination of the words shrink and inflation, refers to downsizing a product to meet the demands of inflation.
Customers who experienced inflation at restaurants and food establishments are mentioned in Yelp’s report. The majority of “shrkinflation-related” complaints came from patrons of eateries that offered pizza, hot dogs, and hamburgers on their menus.
Customers also complained about the size of the portions at seafood eateries and eateries that served Italian or Chinese cuisine in their reviews.
“Yes, it’s inflation going on,” said Carolyn Gherardi, owner of Gourmet to Go, a small single-story shop with a front porch and a yellow door that offers customers grab-and-go “homestyle” meals. For now, she’s holding the price steady on those salads at $6.95.
“We’re trying to keep the cost the same, but in essence it’s less value,” she said.
Yelp reported that 47 states revealed mentions of inflation in their ratings in the second quarter compared to 35 states in Q2 last year, indicating that the country has been affected by inflation.
Pria Mudan, Yelp’s data science leader, said in a statement provided to FOX Television Stations Thursday,
“The first half of 2022 has been challenging for people and businesses alike. Yelp data shows that while consumers have steadily experienced increased inflation since 2021, they’re particularly feeling the effect this year. Inflation mentions in Yelp reviews are increasing more than ever before, and for the first time, we’ve seen mentions of shrinkflation-related experiences. That said, people are resilient and adapting.”
“While consumers searched for fewer higher priced businesses in Q2 2022 compared to Q1 2022, perhaps in response to inflation, they still searched for higher-priced businesses more frequently than prior to the pandemic – an encouraging indicator that intent to spend at higher priced businesses is still strong. The first half of the year also saw consumers booking reservations further in advance than before, and a relative increase in searches related to electric vehicles, presumably to alleviate the burden of increasing gas prices. As people continue to settle into a new normal, Yelp data shows how they’re finding ways to adapt amid new economic challenges,” Mudan added.
As the costs of goods and services surge this year, consumers can expect to pay more for food at the grocery store and while dining at restaurants.
Bryan Stotland, a 53-year-old from Chicago, says he’s noticing smaller portions mostly at grocery stores, but also for entrees at sit-down eateries, too. “It’s like $20 for an appetizer and $32 for a entree, and they’re pretty close to the same size. So in that sense portions have shrunk.”
“Sometimes I get a little frustrated,” he said. “But I guess it’s like the economy is messed up, and you understand.”
Read it here: Yelpeconomicaverage
