Bobby Flay weighs in on food inflation in the restaurant business

追加: 2026-05-15

[00:00:00]Welcome back. Let's talk a little food inflation with this month's CPI report coming in hotter than expected. Food at home was up 3% year-on-year with a majority of key categories from fruits to meats showing gains over the past 12 months. Let's get some insight on what this all means for the consumer with today's power player Bobby Flay. He's a chef, restaurateur, and entrepreneur. A lot of French words in there. Bobby, it's great to see you again. Welcome.

[00:00:24]You know, we just talked about how food at home is more expensive, but what are people's options? We were just talking about this. You go to eat out, it's a lot worse. It's it's awful. Um and we we were just saying like even your neighborhood restaurants seems incredibly expensive no matter what you do. Um and it is what it is. I There's really no um solve here. I mean, I just think that as every as as usual, it's going to get passed on to the consumer and you're going to have to pay more to eat out, and that's just the way it is.

[00:00:50]>> My favorite piece on this was recently the Wall Street Journal did something about I'm not going to get exactly right, but it said, you know, your $150, you know, steak dinner, the restaurant's making $15 on that or something.

[00:01:00]>> If they're lucky. Really?

[00:01:01]>> Yeah, I mean, I I you know, even though restaurants are very very expensive, more expensive than ever, it's still not enough for the restaurant itself. And you're seeing That's why you're seeing restaurants really struggle across the board. A lot of them are closing their doors and they're they're hoping to break even. That's not a good business model for any business.

[00:01:18]So, okay, New York City, the the budget of New York City has doubled. Don't worry, I have a point on where I'm going with this. The budget of New York City has doubled in about 20 years, but the population stayed about the same and the poverty rate's actually up. Point is, where's the money going? So, with that with that in mind, for the restaurants, the $150 dinner that you just said they're not getting rich, where's the money going? Where's it going? It's going to labor, it's going to cost of goods. There's three buckets. The um the labor, of course, the cost of goods, the food and the and the liquor that you buy, and of course, um you know, um rent.

[00:01:52]>> Right. No, I The occupancy cost has always been high in a place like New York City. That's not going to change. I don't think the landlords are going to get big hearts anytime soon. We haven't seen it. I don't think it's going to happen today.

[00:02:03]However, you're going to see what I think you're going to see less jobs and and you're going to see less restaurants open um or or being able to stay open.

[00:02:10]>> Yeah. So, I'm noticing there's guys and I'm sure you're friends with them maybe or you know them, David Chang of Momofuku. All right. You guys kind of go in similar paths where you the physical restaurants have slowed down.

[00:02:21]And I got something in the mail yesterday from a company called Wonder.

[00:02:24]You get this?

[00:02:25]>> Oh, I know about Wonder.

[00:02:26]>> Yes. Well, that's so Bobby Flay flank steak, right? He's part of the or Flay?

[00:02:30]>> Well, well, it's a it's Bobby Flay steak.

[00:02:32]>> Bobby Flay steak. So, you're licensing your name and brand to Marc Lore who founded diapers.com, made a fortune, billion, sold it to Walmart.

[00:02:40]>> jet.com as well.

[00:02:40]>> He owns the Minnesota Timberwolves. His new venture, you're licensing your name for that, you sold your pet food company. Is that the way things are going that the physical restaurant business is what you have to do at the beginning to get your name out there, but it's hard?

[00:02:54]>> think I think that model is is having a hard time staying profitable. And so, I'm in the license business in terms of like my restaurants, I I I'm I'm partners with Caesars Palace in Las Vegas. So, I have a couple of high-end restaurants out there, Amalfi and Brasserie B, but I also have burger places with with Caesars across the board as well. So, those license deals are they're they're good businesses. Trying to open a restaurant, pay the rent in a traditional sense has gotten more and more difficult and that's the problem.

[00:03:22]It really breaks my heart because that's who I am. Um that's that's that's how I grew up in in in the business, just opening restaurants in New in New York City, but it it's gotten harder and harder.

[00:03:32]Can we talk some stock picks? I'm assuming there aren't restaurant names.

[00:03:35]That would be I maybe there are. Maybe there I mean, look at what's happened to Shake Shack this year. Maybe there's some value opportunities there, but we didn't do the stock draft sadly.

[00:03:43]>> I know.

[00:03:43]>> I I you know, we're busy.

[00:03:45]>> I crushed this year last year.

[00:03:47]>> were so good, we just thought why have it again? We can never replicate.

[00:03:49][laughter] What what would your stock picks be? And you know partnership promos, okay? I want pure I want to tell you something cuz I I work I I do have a little little history in your in your industry. I worked on the American Stock Exchange a long time ago. So, I know a little bit about this.

[00:04:06]I am an S&P 500 ETF guy and I've been it for two since 2008.

[00:04:12]I'm not good enough to to pick stocks. I And I always tell my friends who are who are starting to make a few bucks like they always say, "What should I buy?"

[00:04:19]And I'm like, "Believe in America, go long." Go broad, go long. Exactly.