Inflation causes shrinkflation
If you think the items you’re purchasing seem smaller than before, though you paid the same price, you’re not alone. Shrinkflation is one result of inflation and it’s now affecting businesses across the country.
Houston, TX – If you think the items you’re purchasing seem smaller than before, though you paid the same price, you’re not alone. Shrinkflation is one result of inflation and it’s now affecting businesses across the country.
Shrinkflation is the practice of reducing the size of a product while keeping the same sticker price. Many business owners say they’re noticing it happening more often.
A group of entrepreneurs gather at Houston’s Harold’s in the Heights restaurant. They agree that one hardship is affecting them all, including Patrick Amante, a graphics design company owner.
"Inflation and supply chain, overall, have had a huge impact on business," Amante tells Fox News.
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Entrepreneurs meet to discuss business solutions. (FNC)
Amante says as inflation continues, he’s noticed a difference in the products he has received from suppliers.
"Sometimes I think they do shrink the size and keep the price the same," Amante says.
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Michelle Korsmo, president of the National Restaurant Association, says inflation is also affecting her industry.
"In the last year, restaurants have seen wholesale food prices go up 13%. This is the biggest increase in wholesale food prices that we’ve seen in 5 decades" Korsmo tells Fox News.
Michelle Korsmo, president of the National Restaurant Association, says inflation is also affecting her industry. (FNC)
Alli Jarrett, a member of the National and Texas Restaurant Associations, owns Harold’s in the Heights Restaurant and says that as inflation continues, she’s also noticed smaller products from suppliers.
"You know, you notice a few things on some of the larger suppliers that, maybe their pack is slightly smaller, so that they don’t have to necessarily increase the price of the pack, but at the end of the day, the price has still gone up" Jarrett says.
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Jarrett says she notices less shrinkflation from local suppliers who aren’t shipping products across the country. Using them has helped her, in turn, not shrink the size of the food she serves.
A breakfast is ordered for customers at Harold's at the Heights
The National Restaurant Association says keeping customers happy with manageable prices and portions will help restaurants and other businesses beat shrinkflation and inflation altogether.
"Restaurants have had to get creative with solutions, but I think as a consumer, we can all be hopeful that our love of going out and eating at restaurants is going to be the thing that keeps menu prices low" Korsmo says.
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In a report, the food review site Yelp says for the first time ever, consumers are mentioning shrinkflation in reviews, most commonly at restaurants serving more affordable options like pizza, hotdogs, and hamburgers.
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