With the exception of beef, the beginning of 2014 initially looked like it would be a fairly moderate year in terms of rising commodity costs. The last few months, however, have seen record highs in several staple commodities, causing many restaurant operators to have concern over additional inflation in the coming months. Although the U.S. Department of Agriculture forecasts that overall food inflation this year will be between 2.5% and 3.5%, sharp spikes in certain commodities may have restaurateurs looking for other options to offer on their menus and setting up strategies to control costs. Here is an overview of a few factors effecting the cost of commodities in 2014.
Global Demand Drives up Commodity Costs
So far in 2014, U.S. exports are rising and global demand is continuing to drive up the cost of commodities—cheeses, in particular, have hit record highs. For example, the price of Chicago Mercantile Exchange…
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