How a Classic French Dish Is Squeezed by Lingering Inflation

Published On Mar 9, 2025, 3:00 AM

The article discusses the impact of rising inflation on restaurants in France, particularly focusing on the iconic dish, Beef Bourguignon, served at Bouillon Chartier in Paris. Owner Christophe Joulie mentions that costs for ingredients, electricity, and wages have surged by 30 to 45 percent over the past five years, making it challenging to keep prices affordable. Bouillon Chartier has maintained the price of this classic dish at around 10 euros, but is facing significant pressure on profit margins, cutting them by up to 20 percent to manage costs and continue providing accessible meals.

Stock Forecasts

YUM

Negative

The ongoing inflation in Europe is negatively impacting consumer spending power and the restaurant industry, which is crucial for stock positions in companies related to food service and restaurants. Investors might consider positioning themselves against high-inflation sectors, as rising costs could lead to decreased profits and consumer pullback in discretionary spending.

Related News

KFC to Leave Kentucky for Texas

Feb 19, 2025, 11:48 AM

KFC, formerly named Kentucky Fried Chicken, disappointed state leaders when it announced it was moving to Texas.

Move away from its ancestral home is part of a wider shakeup at its parent company Yum Brands.

The money could come from a sale of part of the business, or new investment from existing shareholders.