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By Ed Avis
Mexican restaurants buy a lot of imported food, especially from Mexico. Unfortunately, the price of imported food is hitting the roof this year, according to a late June survey of el Restaurante readers.
“Most everything has gone up from 2 percent to 50 percent,” wrote one survey respondent. “The proteins are out of control. The condiments are outrageous. Drinks up 40 percent or more. They even went up way before tariffs and now are going up again. There's a lot of gouging going on.”
Ninety-two percent of the respondents to our survey, which was completed by 42 Mexican restaurant owners/managers, reported that the price of avocados from Mexico is up this year, and 88 percent reported that the price of other imported produce is up.
The inflation is not limited to produce: 96 percent said the cost of imported beef, pork and poultry is up; 88 percent say Mexican corn and cornmeal is up; and 73 percent said Mexican beer prices have jumped.
The reasons for the increase are unclear. Trade agreements are supposed to shield Mexican produce from tariffs, but the chaos and uncertainty from tariffs and border/immigration issues are affecting things. And factors that affect all food prices — demand, weather, disease, supply chain problems — also affect imported food.
Raising Prices, Seeking New Suppliers
Mexican restaurant owners are addressing increased food costs in a number of ways. Eighty percent of our survey respondents said they have raised some menu prices, and just over half have sought new suppliers.
The survey also showed that 28 percent have reduced some portion sizes, and the same percentage have changed some recipes to avoid high-cost ingredients.
One respondent is creatively cutting costs: “[We are] looking to buy leaner cuts of meat and using best techniques to give it a great flavor and texture. This is something that from a Latin culture we strive for — taking the unappealing and tougher cuts of meat and making a delicious meal,” the respondent wrote.
Exploring Alternatives
Many restaurants are turning to domestic sources for ingredients that normally come from Mexico or elsewhere or are sourcing close substitutes. (Click here to read an el Restaurante article about local sourcing.) Tomatoes are one example.
“We are lucky that California domestically produces some of the finest tomato products in the world,” notes Jon Holt, global director of sales and marketing at The Neil Jones Food Company. “So, when it comes to choosing a high-quality product, choosing American-grown and processed tomatoes is not a sacrifice in quality. On the contrary, it supports our local farmers and processors which strengthens us as a country and exporter to other countries.”
Sandy Acosta, a supply chain and sourcing expert with a special interest in the Latin and Hispanic food category, suggests asking suppliers for replacement ingredients.
“A lot of broadline distributors, like Performance Food Group, have culinary consultants who can partner with restaurants to help rethink menus without losing the flavor or authenticity that guests expect,” Acosta says. “Let’s say Oaxaca cheese gets too expensive — the distributor might suggest a domestic mozzarella blend paired with a smoky salsa or some well-seasoned chorizo to keep that same richness. Or if tomatillos are tough to source, a green tomato salsa with serrano and lime can bring that same bold, tangy kick.”
Acosta offers suggestions for substituting avocados, chiles and limes, too:
Avocados: During periods of high pricing, frozen or refrigerated avocado pulp can be a smart alternative to fresh fruit. Not only does it help control costs, but it also reduces prep time and labor associated with peeling and pitting.
Chiles: When specific dried imports like guajillo or árbol are in short supply, chile pastes or prepared adobos offer both flavor and efficiency.
Limes: If fresh limes are cost-prohibitive, domestic citrus like Meyer lemons can be a workable substitute. Vinegar-based marinades or pre-blended citrus flavor powders can also replicate the acidity needed for marinades and finishing touches.
While swapping ingredients is one way to temper the impact of escalating food prices, it isn’t the only way to realize savings, Acosta says.
“Sometimes the real opportunity is in the kitchen itself — tightening up prep routines, managing portions or reducing waste can make a big impact,” she concludes. “Often, it’s not about changing the dish, but how you get it to the plate.”
Click here to go to the next article, Five Questions: Chef Pepe Stepensky