Restaurant owners forced to spread their wings

Monday, June 18, 2007

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The rising price of corn is putting the squeeze on local restaurant owners and in turn customers. (Slideshow)

Some Bay area restaurants are getting burned.

Not only are fuel increases affecting their product prices, but so is the demand for corn, a commodity connected to many entrees and side items.

Poultry prices, for example, are biting into the bottom line of Wing Factor co-owner Kevin Hagerty.

"We've seen the cost of chicken wings double," Hagerty said.

Hagerty said the price of corn has flown the coop, and since chicken feed on corn, his wing prices may increase.

"What they're saying now is corn and ethanol and everything that is involved with feeding the birds, care of the birds, that the farmers are paying double in their prices for the grain and the feed so they return that cost to us," Hagerty said.

Corn Prices Fly Coop

The rising price of corn is affecting local restaurant owners
E-mail Emily Maza, the TV reporter for this story

Customer Jennifer Fink said despite price increases she still enjoys dining out.

"You don't have to clean up afterwards, so I really don't care," Fink said.

Protein's popularity and the ethanol push has equated to more cash for corn, so that means Hagerty is open to making changes.

"It's tough when your name is the Wing Factor to try to push other products," Hagerty said.

Hagerty said it's tough when you're known as the Wing Factor and you have to push other products.

But it seems other products are feeling the heat, too. Several Bay area steakhouses have closed because beef prices are also on the rise.

So to remain competitive in the market, restauranteers like Hagerty find themselves starting from scratch when it comes to what they serve.

"We find ourselves doing a lot more sandwiches and salads than before," he said. "We've increased our menu by 15 to 18 items other than chicken wings just to help take pressure off selling chicken wings."

The USDA expects chicken prices to be up 10 percent this year. Eggs should be up 21 percent and milk up by more than 20 percent.