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After years of runaway inflation, it can be hard to know what a realistic price for anything is anymore, especially in the food category. Is $60 ridiculous for a ribeye steak? How about $36 for a carton of eggs? Is $25 still reasonable for a fast-food meal for four?
What is a bargain, what is acceptable and what is downright offensive?
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When dining out, the baselines of “fair” and “overpriced” can get even murkier, which makes your budget harder to plan. Many Americans are now opting for inexpensive appetizers over pricier dishes, and skipping dessert completely, if they’re visiting their favorite restaurants at all anymore (1).
Amid this period of valuation flux and confusion, tensions are high. Most Americans have been feeling the squeeze for some time and are severely stressed about the fact that grocery and restaurant bills continue to rise (2) — which is why social media outrage over specific instances of perceived “greedflation” (3) or “shrinkflation” (4) is not only common, but tends to snowball into a flurry of debate about the cost of living.
Take, for example, one New York City council member’s recent Instagram post about a local restaurant meal that he felt was particularly exorbitant.
$40 for half of a chicken — the new normal or too steep?
Chi Ossé, who represents NYC’s 36th District, took to Instagram to lament the cost of a half-chicken dinner he was served at a Brooklyn eatery.
“$40 half-chicken at a wine bar? Really?” he wrote in a succinctly-worded post on April 9 that, at the time of writing, has amassed more than 9,300 likes and more than 500 comments (5).
Users jumped in to vent about their own frustrations with soaring costs, agreeing with the elected official that the price did not match the product. Some pointed to gentrification, while others called for action such as removing the business’s liquor license. One joked that they would rather “raise the chicken [themselves] for that much.”
But, it seems many more commenters are on the side of the restaurant, admitting that, although the $40 figure is unsettlingly high, it is likely justified given that bills — rent, ingredients, labor, utilities and more — are rising on restaurants’ ends, too.
Read More: Robert Kiyosaki warned of a ‘Greater Depression’ — with millions of Americans going poor. Was he right?
“What gives?” vs. “Give them a break!”
Quite a few users objected not just to 28-year-old Ossé’s opinion of the menu item’s fee, but also his posting about it publicly.
One person put it bluntly: “It’s strange to me that you (or any politician) would spend time punching down at an independent restaurant like this. The spot in question is employing full-time staff, paying them a living wage, and serving delicious food. And the prices include the service fee.”
Some were also quick to point out that Ossé, more than other consumers, is in a position to understand why the price point was as high as it was and also to do something about it.
“The chicken costs $40 because their rent is out of control as are all their costs,” reads one comment. “You’re in power; maybe do something about lowering costs for small businesses instead of victim blaming.”
In the restaurant’s defense of its high costs
The New York Times has since provided management from the establishment at the center of the hubbub — Gigi’s in Greenpoint — a platform to explain the charge (6).
Seeing as his employees receive paid time off, health benefits and fair compensation (including, crucially, a service fee that’s rolled into the displayed amount), owner Hugo Hivernat told the outlet that $40 is “the right price” for the meal in question. He adds that it goes for just shy of the same amount at other Big Apple spots when served as a full plate with sides, like it is at Gigi’s.
Poulet Sans Tete (7), which has locations in the West Village and the Upper West Side, charges $17 for a half-chicken on the bone ($2 extra to debone), an additional $5 to $16 per side ($8 for a small potato side comparable to the one at Gigi’s), plus $2 per sauce (Gigi’s comes with three), bringing a comparable dish to $31 to $33.
This is around the listed price of both The Ribbon’s (8) spit-roasted half Amish chicken, complete with mashed potatoes ($32). The Fly’s (9) half-chicken comes in at $38 with accompaniments. At Malka (10), it’s $69.
And it’s not just New York.
In Chicago, the same serving of bird is $41 at Alla Vita (11). In Los Angeles, Manuela (12) serves it for $36. A few hours north of the border in Toronto, Taverne Bernhardt’s (13) has their version for $39 CAD ($32.25 USD with applicable tax, plus tip).
Yes, cheaper half-chickens exist in all of these cities (14), but Gigi’s asking price is not exactly an outlier in the industry. And, naturally, the fee of entry to a more premium establishment with industry-renowned chefs (15) behind it is going to be higher than a fast-casual chain or some little-known no-frills gem.
Furthermore, Gigi’s team has one particularly valid and unique factor in its pricing: charges incurred while they were waiting for the inspections and operating permits necessary to open, including months of rent paid while the space sat idle.
Add that to the climbing price of chicken (16), electricity (17) and more — then compare it to the rest of the industry’s poultry mains — and perhaps $40 isn’t so wild an ask after all.
Prepare your finances as inflation makes a comeback
The price of poultry, along with eggs and bread, is often pointed to as a sign of growing inflation. To be clear, the cost of chicken has been on the rise thanks to the persistence of inflation, but how much varies as much by place as does the price per pound.
Prices accelerated in March, with the PCE index rising 3.5% year-over-year. That’s a noticeable jump from February’s 2.8%. Even core inflation, excluding food and energy, came in at 3.2% (18). And if the new conflict in the Middle East drags on, these prices could continue to rise.
By taking proactive steps to safeguard your portfolio, however, you can ensure a degree of protection from these impacts.
Certain assets typically perform well during inflationary periods, helping investors preserve their purchasing power.
Diversify with gold
You’ve probably heard of a golden goose, but for most investors interested in preserving their wealth, something less feathered might be more appealing.
Gold — whether bars or coins — for example, has long been viewed as a hedge against inflation. Because it isn’t tied to the performance of any single currency or economy, gold is often regarded as a store of value when purchasing power is reduced.
One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with Goldco, which allows you to invest in physical gold and silver.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
Download your free gold and silver information guide today to learn more. Just keep in mind that gold is often best used as just one part of a well-diversified portfolio.
Invest in real estate
Gold isn’t the only option for investors keen to keep their wealth as prices and the cost of living rise.
Real estate also tends to shine in these conditions. Rising costs to build and buy homes usually push property values higher and rents often follow. Smart investments in property can give investors an income stream that keeps up with inflation.
And the best part? You no longer need to take on a hefty mortgage or manage tenants to get a slice of the real estate market.
Platforms like Arrived allow you to invest in shares of vacation and rental properties across the country with as little as $100.
To get started, just browse their selection of vetted properties, each chosen for their appreciation and income-generating potential.
Arrived distributes any rental income generated by properties to investors monthly, meaning you could potentially earn passive income without all the extra work that comes with being a landlord. Under the right circumstances, this can boost your finances as prices increase.
And for a limited time, when you open an account and add $1,000 or more, Arrived will even credit your account with a 1% match.
But real estate is more than one vertical — investors with capital on hand could instead invest in much more than single-family residential or vacation properties.
Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
A finer alternative you can add to your portfolio
Inflation isn’t the only concern — market valuations are nearing all-time highs too. In 1999, the S&P 500 peaked, and it took 14 long years to fully recover.
Today? Goldman Sachs is forecasting just 3% annual returns from 2024 to 2034. It sounds bleak but not surprising: the S&P is trading at its highest price-to-earnings ratio since the dot-com boom. Vanguard isn’t far off, projecting around 5%.
Considering how expensive many assets look right now, those projections may not be all that surprising.
That’s why billionaires have long carved out a slice of their portfolios in an asset class with low correlation to the market and strong rebound potential: post-war and contemporary art.
It may sound surprising, but more than 70,000 investors have followed suit since 2019 — through Masterworks. Now you can own fractional shares of works by Banksy, Basquiat, Picasso, and more.
Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.
Moneywise readers can get priority access to diversify with art: Skip the waitlist here.
Note that past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd.
— With files from Becky Robertson
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
YouGov(1); Yahoo Finance(2); Financial Times(3); Investopedia(4); Instagram(5); The New York Times(6); Poulet Sans Tete(7); The Ribbon(8); The Fly(9); Malka(10); Alla Vita(11); Manuela(12); Taverne Bernhardt(13); The Bellevue(14); Edible Brooklyn(15); U.S. Bureau of Labor Statistics(16); Empire Center(17); Reuters (18)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
