Tuesday, September 05, 2017

Hidden inflation

Central banks, the Fed in particular, have been concerned in recent years about their inability to push inflation above 2%, which would let them raise rates and provide them with ammo for the next recession. This evening, at Nantucket Grill, I saw numerous signs of hidden inflation.

For starters, on Tuesday, cake night, you now need to order a $13 entree to get free cake. Used to be $10. So lower discounting, or greater pricing power.

At check out, they tacked on a 20% mandatory tip for our group of 7. 18% used to be standard.

Most importantly, service was slow, and in particular they had a hard time getting bread to our table. This reflects super tight labor markets and high demand.

All told, it took us 2 hours for what should and could have been a 90 minute meal. Which is a pretty big hidden cost.

Also, they put a bunch of squash in my pasta dish. I don't know what the fuck was up with that.

No comments: