Lemon lovers get bitter shock on California drought: Commodities

First it was the surge in beef prices, and then seafood went through the roof. Now you can add lemons to the growing list of ingredients cutting into profit on the menu at Joe’s Seafood, Prime Steak & Stone Crab.

The three Joe’s restaurants, in Washington, Chicago and Las Vegas, use more than 800 lemons a day sliced as garnishes on entrees or juiced for drinks and sauces. A case of 165 lemons costs managing partner Mike Rotolo about $50, up from $30 to $35 in the past year, and many are less juicy than normal.

“This is the worst I’ve seen, and I’ve been at it for at least 25 years,” Rotolo said by telephone from Chicago. “We’re fighting costs on all fronts, with seafood, prime steaks. If we changed our menu every time we had a spike in one of the items we’re buying, it’s just impossible.”

A prolonged drought in California, which grew 91 percent of U.S. lemons this year, contributed to a surge in costs. Wholesale prices almost doubled from a year earlier, and retail lemons are up 36 percent to $2.327 a pound in August, the highest since the Bureau of Labor Statistics began tracking them in 1980.

At a time when big Midwest grain crops are contributing to lower global food prices, the lack of rain in the nation’s biggest agricultural state is boosting costs for fresh fruits. The U.S. Department of Agriculture forecasts an increase of 5 percent to 6 percent this year, matching expected gains in meats and eggs. Smaller U.S. livestock herds sent retail beef and pork to records this year, and a USDA shrimp index is up 24 percent in a year and the highest since the data starts in 1991.

Read the Full Article

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners