National Restaurant Association Statement on the Impact of the Gulf Coast Oil Spill

"The oil spill in the Gulf of Mexico and its impact on the cost and availability of food arrives amidst a backdrop of already rising food costs for the restaurant industry. According to Bureau of Labor Statistics data, average wholesale food prices were up 7 percent in the 12 months ending March 2010, with individual commodities posting substantially higher gains: fresh vegetables (+85%), unprocessed fin fish (+48%), fresh fruits (+29%), pork (+19%), beef and veal (+11%), and dairy (+10%). 

"With rising food costs squeezing already tight margins, most restaurant operators have been keeping menu price increases to a minimum, in order to compete for consumers’ limited disposable income in the challenging economic environment. According to the Association’s Restaurant Industry Tracking Survey, menu prices registered a 0.5 percent average increase in the 12 months ending March 2010, an extremely modest 12-month gain by historical standards. 

"The impact of the oil spill on the restaurant industry will likely be two-fold. First, the closing of commercial fisheries along the Gulf Coast will impact the supply and price of seafood for restaurants nationwide that serve products from this area. Second, the oil spill will likely negatively impact tourist destinations along the Gulf Coast in areas that are affected by the oil. Coming at the beginning of the summer travel season, this impact could be serious for the communities that are directly impacted. 

"Although it is too early to quantify what this means for the restaurant industry in dollar terms, the impact will grow with each day that the situation continues."


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