Tijuana Eateries Wrestle Inflation

Tijuana’s restaurants, facing inflation challenges, raise prices by 15%. Rising wages and ingredient costs strain profit margins, forcing tough decisions to survive in the competitive industry.

### Tijuana’s Restaurant Sector Struggles Amid Inflation: “It Has Been Very Difficult for Us to Stand”
Zaida López, the president of the National Chamber of the Restaurant and Seasoned Food Industry (Canirac Tijuana), highlighted the significant challenges faced by Tijuana’s restaurant industry amidst rising inflation. The increase in workers’ wages and the soaring cost of food products have forced restaurants to hike their prices by up to 15% this year.

López emphasized that it has been nearly impossible for restaurant owners to absorb the increasing costs. She noted, “We can’t stick with previous prices because onions, potatoes, and other essential products are now more expensive. Many of these products are imported from the USA or other countries, and we have to utilize them as we cannot compromise on quality.”

López underscored that the inflationary pressure from rising wages must be transferred to consumers to some extent. “Higher wages have contributed to inflation. We need to find the best prices. Restaurateurs are often thought to be in a lucrative business, but it’s been very challenging to stay afloat recently.”

In response to these pressures, some restaurants have removed certain dishes from their menus or opted to sacrifice volume over price to mitigate the impact. “It’s not about sacrificing quality because if you do that, customers won’t return. This leads to declining patronage and potentially closing down or reducing staff,” she explained.

### Additional News on Restaurant Industry Challenges

#### Rising Prices of Key Ingredients Affect Restaurant Profit Margins
The cost of fundamental ingredients like lemons and avocados has also surged, surpassing 100 pesos per kilogram. Such price hikes are putting additional strain on restaurant profit margins, demanding constant adaptation from business owners.

#### Economic Recovery in Sight?
Experts have suggested that the current economic downturn affecting both Mexico and the USA may ease by March. However, for many restaurant owners, the path to recovery remains uncertain, and they are bracing for continued financial difficulties amid fluctuating market conditions.

#### Migration Trends and Violence Impacting Local Economy
The increasing violence in certain regions, such as Sinaloa, might lead to a rise in migration to Baja California. This demographic shift could further influence the local economy, including the restaurant industry, as shifting population dynamics affect customer bases and demand patterns.

Stay tuned to TJGringo.com for more updates on local economic developments and their impact on Tijuana’s restaurant scene.