California’s cold snap could mean a spike in prices for oranges, lemons and other produce grown in areas hit by unusually cold weather, and local restaurants, as well as grocery stores, are likely to be affected.
“Obviouslywe’re hearing that the cold weather is wreaking havoc with the crops and we’re watching with concern and we’ll see what happens,” said Lynne Breaux, president of the Restaurant Association of Metropolitan Washington. “Food prices certainly impact menu prices.”
Prices could start going up within the next few weeks, but it may be the restaurant owners and grocers — not consumers — who bear the brunt of the increases.
“I think citrus prices will definitely go up,” said Geoff Tracy, owner and chef at three local restaurants, including Chef Geoff’s in the District. “[But] the price of citrus goes up and down, up and down, so the restaurateur is going to pick a price that reflects that average. It’s almost always a part of doing business when it comes to owning a restaurant.”
Tracy said menu prices likely won’t go up at his restaurants unless the produce price hikes are prolonged. For example, seafood prices have increased over the last few years and that has been reflected on his menu.
While the citrus crop has seen price spikes before, it eats into a restaurant’s bottom line each time, said David von Storch, owner of Capital City Brewing Co.
“It will take a few weeks [for prices to go up], but when it hits, it hits very, very hard,” he said. “Strawberries can go from $2 a pint to $8 a pint, and it’s something we have to absorb. We have no choice but to absorb those weather-related fluctuations.”
Consumers may still take a hit at local grocery stores, but local grocery chains said they are working to find alternate suppliers in order to keep costs down.
“Yes, we are seeing a rise in costs from our citrus supplies due to the freeze,” Jennifer Panetta, a spokeswoman for Harris Teeter, said in an e-mail. “We are still assessing the situation to see if there are other locations throughout the world to obtain citrus fruit.”
