'It's difficult for managers,' on top of short staffing as well as rising costs and supply chain issues, Cameron Mitchell told CNBC on Wednesday.
for restaurants. The National Restaurant Association expects it to take a year or more before conditions start to stabilize for eateries.
Mitchell said his restaurants have felt the effect of the higher costs. "It's the highest cost of goods I've ever operated in, 42 years in the restaurant business. By way of example, last year cost of goods were 29.6% of sales, this year 33% of sales so far. That 3.4% increase to the cost is severely impacting our bottom line," he said.
He added that while labor costs are up about 13% overall, his workforce has almost returned to normal levels since taking a hit late last year due to the omicron wave. The restaurateur said he expects to increase prices this year to offset costs, and hopes to continue the trend of increasing sales to levels his business saw in 2019, before the pandemic.
"We can't price our way out of this, but with the increase in sales, if we get back to where we were with our price increasing, we can not maintain our profit margin," Mitchell said. However, he added the business can "still lead a pretty good profit over the course of the year."
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