Middle East unrest affects food costs at TX restaurants

The ongoing conflict in the Middle East is expected to have a direct impact on restaurants in Texas, according to the Texas Restaurant Association. The conflict in the Red Sea, specifically involving Yemen’s Houthi rebels attacking commercial ships, has led to shipping delays and changes in routes to avoid attacks. This has disrupted the flow of goods through the Red Sea, affecting the supply chain for restaurants in Texas.

The Houthi rebels have launched more than 50 attacks on shipping, seized one vessel, and sank another since November, causing a decline in shipping through the Red Sea and Gulf of Aden. The threat of attacks has led to increased shipping costs and reduced shipping capacity, ultimately making food and supply costs more expensive for restaurants in Texas.

Texas Restaurant Association President and CEO, Emily Williams Knight, highlighted the global nature of the restaurant supply chain, emphasizing that the impact of the conflict in the Red Sea is felt locally. She mentioned that the reduced shipping capacity has significantly increased shipping costs, which will ultimately lead to higher prices for restaurant items.

Despite the challenges faced by restaurants, Knight encouraged customers to support local restaurants, especially during busy months like May with events such as Mother’s Day and graduations. She emphasized the importance of dining out to support restaurants facing pressure due to rising costs.

One restaurant owner, Harlan Scott of Industry in East Austin, shared his concerns about the rising food and supply costs impacting his business. Scott mentioned that he has had to raise prices multiple times over the past year, affecting customer spending and frequency of visits. He expressed worries about not being able to get essential goods like grains and starches due to the unrest in the Red Sea.

Scott emphasized the importance of connecting with customers and nurturing relationships to navigate through these challenges. He highlighted the need for transparency with customers about the struggles faced by restaurants and hoped that customers would understand and continue to support local businesses during these difficult times.