Salt Lake City restaurants prepare for tariff-driven uncertainty
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Utah restaurateurs are bracing for economic uncertainty due to Trump-imposed tariffs.
Why it matters: The restaurant industry's thin profit margins mean any economic or supply disruption could impact its bottom line, prompting eateries to cut staff, shrink menus, reduce hours and in some cases close down.
- As restaurants continue to emerge from the pandemic, the latest trade war adds fresh strain — especially on businesses that rely on imported goods.
State of play: Brooks Kirchheimer, who co-owns Urban Hill, Hearth and Hill and Hill's Kitchen, said his business is taking a proactive stance toward changes in the market.
- It's why he employs a full-time data analyst to stay on top of trends and keep an eye on shifting costs.
- He's recently prepared for potential higher price tags by buying things ahead of time, including catering supplies.
What they're saying: "We're constantly evaluating the food costs and other costs on a daily basis to make sure that in an industry that already has such low-profit margins that were on top of very challenging and wavering economic times," he told Axios.
Former state Sen. Derek Kitchen, owner of Laziz Kitchen, said the tariffs have led his suppliers to stop selling the aluminum takeout containers his restaurant relies on.
- Rates on food imports, including olive oil, have also risen significantly. Other goods have increased by 20% to 40%, he said.
- "We're bracing for a complete change to our supply chain, and it's forcing our team to scramble," he told Axios.
- So far, Kitchen said his business has absorbed rising prices, but he doesn't know how long that can last.
What we're watching: If the economic uncertainty continues, Kirchheimer and Kitchen said, they anticipate fewer independently owned restaurants opening in Salt Lake City.
- Kirchheimer said he'd like to expand to seven or 10 restaurants, but is taking a "wait and see" approach amid the market's unpredictability.
- "It's certainly going to prevent new people from starting ideas because they're worried about the volatile cost environment," Kitchen noted. "Nobody's going to get rich off of a restaurant these days."