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» Fork in the Road «

by Sarah DiGregorio | email: sdigregorio@villagevoice.com

Fork in the Road Talks to Chefs about Gastro-Economic Distress

Posted by Sarah DiGregorio at 10:55 PM, May 6, 2008

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This week, Fork in the Road talks to chefs who are grappling with the crazy-bad euro/dollar exchange rate.

The problem is not that they can't afford a Paris vacation—no, it's that all those delicious things that come from Europe (like cheese, wine, Mediterranean fish, chanterelles and truffles) are now ridiculously expensive. They can raise prices, but only so much—would you pay $22 dollars for a glass of Champagne? In some cases, that's how much chefs would have to charge to maintain any profit margin. So the chefs are sourcing other ingredients and changing their menus to stay both profitable and relatively affordable.

comments

I guess this is why the diners and greasy spoons always survive. People can't afford the fancy/pricey stuff but will continue to get bacon, egg, and cheese sandwiches from the corner store or diner. www.oatmealcookie.typepad.com

Posted by: Oatmeal Cookie Guy at May 7, 2008 12:33 PM

Champagne is a poor choice to demonstrate the problem. Wine and liquor are ridiculously marked up, far more than any food item. A rise in price of 50% means less loss of revenue when said item is marked up 400% on the menu.

Posted by: Elizabeth at May 8, 2008 2:49 PM

Actually the percentage of mark up doesn't matter it's the profit margin that matters. Yes wine and liquor are marked up--but that said--many restaurants depend on the hefty drink margin to turn any kind of profit in such a high overhead business.

Posted by: hoipoloi at May 9, 2008 9:50 AM

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