Thanks for being here. We've talked quite a bit about the inflation. We talked about Covid and what it's done to the economy and I think that in the hotel industry, the restaurant industry, hospitality in general. But when you speak about the restaurant industry, it has been hammered through Covid 19. You just think about what happened in Arizona

Thanks for being here. We've talked quite a bit about the inflation. We talked about Covid and what it's done to the economy and I think that in the hotel industry, the restaurant industry, hospitality in general. But when you speak about the restaurant industry, it has been hammered through Covid 19. You just think about what happened in Arizona

first, there was the closing of restaurants and they only couldn't have any dining. It all had to be take out,

first, there was the closing of restaurants and they only couldn't have any dining. It all had to be take out,

shut down the liquor business which is a big part of, of money making in a restaurant. Then they opened up at diminished capacity, 50% of capacity. Anybody that's ever run a restaurant worked in a restaurant knows turning tables in full restaurants are the only way to make money. So the overhead didn't change. As a matter of fact, it went up a little bit mitigation strategies, you still had to hire people and staff the restaurant, but you could only be filled

shut down the liquor business which is a big part of, of money making in a restaurant. Then they opened up at diminished capacity, 50% of capacity. Anybody that's ever run a restaurant worked in a restaurant knows turning tables in full restaurants are the only way to make money. So the overhead didn't change. As a matter of fact, it went up a little bit mitigation strategies, you still had to hire people and staff the restaurant, but you could only be filled

filled to 50% capacity for quite a while. Then after that we saw them opening back up but the mitigation strategies were still in place, You are still six ft apart at the bar, there was no crowds and now that we get back to crowds, we are seeing inflation that have food costs and labor costs skyrocket in that industry.

filled to 50% capacity for quite a while. Then after that we saw them opening back up but the mitigation strategies were still in place, You are still six ft apart at the bar, there was no crowds and now that we get back to crowds, we are seeing inflation that have food costs and labor costs skyrocket in that industry.

So I talked about it quite often because I, I wonder the effects that there are going to be a lot of restaurants that just might not be able to make it

So I talked about it quite often because I, I wonder the effects that there are going to be a lot of restaurants that just might not be able to make it

joining us right now. The head of the Arizona restaurant association is steve chucri steve did. I accurately explain part of the issue that your industry is facing in Arizona.

joining us right now. The head of the Arizona restaurant association is steve chucri steve did. I accurately explain part of the issue that your industry is facing in Arizona.

Yeah, good morning mike you did to the T and a little scary, you might even be able to replace me at the restaurant association. It's alright, but you're, you're absolutely correct and it's not just an Arizona phenomenon, right? This is happening across the country. Uh And inflation

Yeah, good morning mike you did to the T and a little scary, you might even be able to replace me at the restaurant association. It's alright, but you're, you're absolutely correct and it's not just an Arizona phenomenon, right? This is happening across the country. Uh And inflation

is one thing, right? You can see that the gas surcharge is going on

is one thing, right? You can see that the gas surcharge is going on

bills to and in many different business sectors, but in the restaurant business mike, you can't always pass that on to the customer because there's this other form of inflation called menu inflation and you cannot do that. You cannot

bills to and in many different business sectors, but in the restaurant business mike, you can't always pass that on to the customer because there's this other form of inflation called menu inflation and you cannot do that. You cannot

simply pass our cost increases on to our customers or others will fail as well. So it's a very delicate dance.

simply pass our cost increases on to our customers or others will fail as well. So it's a very delicate dance.

And the other part of this, I was talking with a friend of mine that owned some restaurants here in town

And the other part of this, I was talking with a friend of mine that owned some restaurants here in town

is you've got to dance in a really scary dance because if you raise the price is too much, you price people out of the market, people don't have as much discretionary income as they used to have on top of that. Your costs are going up. How do you make that balance?

is you've got to dance in a really scary dance because if you raise the price is too much, you price people out of the market, people don't have as much discretionary income as they used to have on top of that. Your costs are going up. How do you make that balance?

Well, it's it's not a it's a very challenging, challenging time for the industry because

Well, it's it's not a it's a very challenging, challenging time for the industry because

you're you're hitting, you're hitting it right again, in the sense that you've got costs coming up from your food prices and the broad line companies that deliver that food, they're, they're having issues hiring truckers and they're having their own issues delivering those cases on time. And secondly, you're combating labor,

you're you're hitting, you're hitting it right again, in the sense that you've got costs coming up from your food prices and the broad line companies that deliver that food, they're, they're having issues hiring truckers and they're having their own issues delivering those cases on time. And secondly, you're combating labor,

right? And then there's this third dynamic that people don't realize

right? And then there's this third dynamic that people don't realize

we are a discretionary income recipient beneficiary as a restaurant industry. And what I mean by that is

we are a discretionary income recipient beneficiary as a restaurant industry. And what I mean by that is

Whatever you have left over after you pay all your costs and expenses in the month. You usually can, you used to go out to a restaurant, well when you've got gas prices well above $4, right, you're cutting more and more into uh that discretionary income. So all the things you just stated topped with gas prices being where they are today.

Whatever you have left over after you pay all your costs and expenses in the month. You usually can, you used to go out to a restaurant, well when you've got gas prices well above $4, right, you're cutting more and more into uh that discretionary income. So all the things you just stated topped with gas prices being where they are today.

Uh it's a perfect storm right now for industry and we're weathering it. But I gotta tell you it's not easy. And just because you see restaurants busy,

Uh it's a perfect storm right now for industry and we're weathering it. But I gotta tell you it's not easy. And just because you see restaurants busy,

it doesn't always mean that they're, they're making tons of profit because we need to be busy right now in order to keep our head afloat.

it doesn't always mean that they're, they're making tons of profit because we need to be busy right now in order to keep our head afloat.

Steve trickery is joining me, he is the head of the Arizona restaurant Association. Now let me add one more element to, this is the part that worries me is we're going into the summer months where we don't have the tourism business that we've seen classically tourist season between thanksgiving and easter,

Steve trickery is joining me, he is the head of the Arizona restaurant Association. Now let me add one more element to, this is the part that worries me is we're going into the summer months where we don't have the tourism business that we've seen classically tourist season between thanksgiving and easter,

we had a diminished spring training, we now know that snowbirds are gone and the tourism industry slows down in the summer and you depend on local business. So what now does that do? Are we actually going to see some restaurants not make it through the summer months?

we had a diminished spring training, we now know that snowbirds are gone and the tourism industry slows down in the summer and you depend on local business. So what now does that do? Are we actually going to see some restaurants not make it through the summer months?

I think we're gonna see some restaurants unfortunately. Yes, uh suffer greater than than others. I'm hopeful now that for the majority of restaurants mike, we're in a situation where we have been able to weather a pretty difficult two years as you outlined at the outset of this this interview,

I think we're gonna see some restaurants unfortunately. Yes, uh suffer greater than than others. I'm hopeful now that for the majority of restaurants mike, we're in a situation where we have been able to weather a pretty difficult two years as you outlined at the outset of this this interview,

uh and so they've been able to manage

uh and so they've been able to manage

uh to keep things going and to keep the front doors open. So I don't anticipate a lot of businesses going out. A lot of restaurants going out of business this summer. But you might see some restaurants closed for two or three days of the week, right? Um in order to keep their doors open, their remaining for So days during the week

uh to keep things going and to keep the front doors open. So I don't anticipate a lot of businesses going out. A lot of restaurants going out of business this summer. But you might see some restaurants closed for two or three days of the week, right? Um in order to keep their doors open, their remaining for So days during the week

have have food costs or the availability. Sometimes supply chain issues have they caused restaurants to change their menus.

have have food costs or the availability. Sometimes supply chain issues have they caused restaurants to change their menus.

Oh, 100% 100%. And you know, I was talking with uh well known steakhouse here in Arizona that

Oh, 100% 100%. And you know, I was talking with uh well known steakhouse here in Arizona that

they do their own cheesecake from scratch. And he was telling me that they can't even get uh they had to go to the store to get graham cracker crust. Uh so they can crushed graham crackers into making their

they do their own cheesecake from scratch. And he was telling me that they can't even get uh they had to go to the store to get graham cracker crust. Uh so they can crushed graham crackers into making their

their signature desserts or else they couldn't offer them on their menu. So it's it's a very, very big reality. So

their signature desserts or else they couldn't offer them on their menu. So it's it's a very, very big reality. So

when you're hearing from the, from the restaurant owners that you work with, and sometimes there's multiple restaurants and sometimes it's people that own maybe one restaurant, but they've been there for a long time. Are there different levels? Are there different things that they face? Or is everybody just kind of in the same boat?

when you're hearing from the, from the restaurant owners that you work with, and sometimes there's multiple restaurants and sometimes it's people that own maybe one restaurant, but they've been there for a long time. Are there different levels? Are there different things that they face? Or is everybody just kind of in the same boat?

It it depends on the on the specific part of the restaurant operation. So some of them are smaller, more independent restaurants are having issues with delivery, right? Because they're not buying the capacities that the larger guys can get. So while the frequency of delivery or something along those lines for a larger restaurant might be 2 to 3 times a week, one restaurant, when a small independent restaurant

It it depends on the on the specific part of the restaurant operation. So some of them are smaller, more independent restaurants are having issues with delivery, right? Because they're not buying the capacities that the larger guys can get. So while the frequency of delivery or something along those lines for a larger restaurant might be 2 to 3 times a week, one restaurant, when a small independent restaurant

might only get something delivered once a week, which means not sound like a big deal, but in totality, it is. Uh so

might only get something delivered once a week, which means not sound like a big deal, but in totality, it is. Uh so

from a labor standpoint, no, they're all suffering pretty much equally. But when it comes to supply chain issues and costs of food and cost of goods, uh there is a difference between an independent restaurateur and someone who's got multiple stores, Is

from a labor standpoint, no, they're all suffering pretty much equally. But when it comes to supply chain issues and costs of food and cost of goods, uh there is a difference between an independent restaurateur and someone who's got multiple stores, Is

there a projection of when you will be on the outside of this, when this levels off for restaurants and they get to what normal, whatever normal is going to be, that they get there? Or is there just going to be some of this chaos for a while,

there a projection of when you will be on the outside of this, when this levels off for restaurants and they get to what normal, whatever normal is going to be, that they get there? Or is there just going to be some of this chaos for a while,

You know, I think as I look at it in my 20 year career as being a part of this industry. Uh this is, it's it's been the most challenging of times still yet, but I also believe that restaurateurs are some of the most entrepreneurial uh positive thinking people that I've ever come to know

You know, I think as I look at it in my 20 year career as being a part of this industry. Uh this is, it's it's been the most challenging of times still yet, but I also believe that restaurateurs are some of the most entrepreneurial uh positive thinking people that I've ever come to know

and from what I have seen an analysis here in Arizona mike as well as

and from what I have seen an analysis here in Arizona mike as well as

The national boards and that I'm involved in on for the industry. We believe after summer maybe Q3 of this year from a labor standpoint, we see that continuing to improve slowly and that some of the supply chain issues will be put to bed. Uh and I'm hopeful that will continue because it's gotten better,

The national boards and that I'm involved in on for the industry. We believe after summer maybe Q3 of this year from a labor standpoint, we see that continuing to improve slowly and that some of the supply chain issues will be put to bed. Uh and I'm hopeful that will continue because it's gotten better,

But it's just incremental improvement and we need we need more than incremental improvement, but we're hopeful by Q 3-4 this year, we'll see some some reprieve.

But it's just incremental improvement and we need we need more than incremental improvement, but we're hopeful by Q 3-4 this year, we'll see some some reprieve.

I always appreciate the time and your expertise and it's great to talk with you cause I talk about restaurants all the time from a client point of view, a customer point of view. But the insight from somebody on the other side of that

I always appreciate the time and your expertise and it's great to talk with you cause I talk about restaurants all the time from a client point of view, a customer point of view. But the insight from somebody on the other side of that

is important and I hope you're right about it because I I just love the fact that we're such a

is important and I hope you're right about it because I I just love the fact that we're such a

kind of a foodie town and we have such a great choices here in town, I'd love it to stay that way,

kind of a foodie town and we have such a great choices here in town, I'd love it to stay that way,

We'll we'll work to continue that and I always appreciate you talking about the restaurant industry and having me on your show.

We'll we'll work to continue that and I always appreciate you talking about the restaurant industry and having me on your show.

Alright. Thanks, steve.

Alright. Thanks, steve.

Thank you.

Thank you.