‘I feel like I’m in a dying business’ says Columbus caterer on rising food prices

You may have noticed a larger hole in your wallet lately as you eat your bacon, eggs, biscuits and gravy lately.

That’s because the raw ingredients of eggs, flour, milk and other staples are skyrocketing, causing local businesses to charge more. Inflated prices have impacted life beyond your own grocery shopping. Prices have stunned food professionals, from bakers to caterers.

Driven by the bird flu outbreak this past year, which has affected 49 million birds in 46 states, shoppers first noticed the stiff uptick in the price of eggs in local grocery stores.

For example, the average prices of eggs in the South is $3.95 for Grade A large eggs, with the national average is $4.25. Back in 2020 the average was $1.39 in the South and $1.45 nationally.

One local business owner explained how the rise in prices cascaded down to her bottom line.

“I’m overly conscious now of my waste,” said Kate Williams, owner of The Painted Gypsy catering service here in Columbus.

Williams started her business in 2017 and said eggs cost her anywhere from $0.76-$0.89 a dozen from a wholesaler. She says a dozen eggs from that wholesaler now costs $4.99.

Williams said she’s had to stop offering some egg-based dishes such as her popular breakfast tacos unless pre-ordered due to the rising price in eggs. She’s been cutting out the middle man and securing her eggs from local farmers to help ensure she has a supply to make her baked goods.

“My menus are going to become somewhat limited because I won’t even offer certain things; there’s no price point that I can come up with that’s going to suit my financial needs to running a business and give the customer a price point that’s accommodating to everyone’s wallet,” she said.

Williams had to start increasing her prices last year when butter and cream started getting more expensive. Now flour is pricier, too: Williams said flour used to cost her around $4.50 for 25 pounds and now runs her just under $13 for that same 25 pounds of all-purpose flour. Bread flour costs more.

“Even though my prices are increasing because of the cost of food, my profit margin is not necessarily staying the same,” Williams said, adding that, for some items, her profit margin is as little as 5%.

Food costs for her business used to hover around 20-23% of her expenses, but are now 35%.

She says finding food for catering events is becoming more difficult with the availability of some food and ingredients becoming unpredictable.

“It’s scary and it’s added such a level of stress to my job,” said Williams. “I feel like I’m in a dying business.”

Foot traffic shrinking

Fancy Howard, owner of Sweets N Treats in Columbus, said the rising food prices have impacted her business.

Howard said a bulk order of 15 dozen eggs is now $50 when it used to cost around $21. Heavy whipping cream now costs Howard $6.48 for a quart; eight sticks of butter are almost $10.

“For a good cake you need all of those ingredients. You need the fats that are in that. So, we have to increase our prices, which people don’t like,” said Howard.

Howard said she’s seen a decrease in business coming into her store because of the rising prices of doing business. She used to charge $35 for a 6-inch cake and now charges $55.

Howard said she is substituting other ingredients for eggs in some recipes to help lower costs.