Inflation is reflected on our plates. It was only a matter of time before it would have such an impact on the most consumed product in France: bread. A few months ago, the price of bread from bakeries had already risen. But it can quickly reach €1.50.
The cost of raw materials and energy is at record levels. Inevitably, bakeries have to review the price of their products. Is that how it works.
The price of bread follows the inflation of raw materials
Some bakeries already sell a traditional baguette for 1.50 euros. This represents 8.2% of the cost of this basic product in one year. However, Eurostat says that this increase is the lowest in Europe.
Spain saw an increase of 15.2%, while Germany saw an increase of 17.5%.
Bakeries will not necessarily follow the same prices. However, customers will have to pay a few cents more the next time they buy bread.
Bakeries can no longer maintain the prices they had before. They must take into account the increased cost of raw materials: butter, flour, eggs, sugar, etc.
On Friday morning they charged me 9.25 euros per kilo of butter. It is Charentes Poitou butter, a very good butter. Tomorrow morning it will cost more than 11.60 euros. For me it is 10,000 euros a year.
Logically, I’m supposed to pass it to the croissants tomorrow. In other words, logically, the croissant for tomorrow morning should cost 30 cents, explains Frédéric Roy, a baker from Nice.
After bread, it is sandwiches and pastries that will be more expensive in bakeries.
The explosion of energy prices is to be feared
Bakeries also have to deal with rising prices for raw materials. They can’t do anything else. The ovens they use to make bread run on electricity or gas.
Small bakeries will be able to do better. Instead, the situation will be more complicated for large bakeries.
According to the president of the National Confederation of French Bakery-Pastry (CNBPF), Dominique Anract, the problem is clearly energy. He is shocked, after reviewing a baker’s schedule.
Go from €3,000 of electricity per month to €9,000! It is not sustainable. Add to that the increase in wages, and clearly it’s a blow, he’s outraged.
Despite the upcoming tariff shield, bakeries will suffer a 15% increase in energy prices. Therefore, it is logical that the price of bakery products also follows the course of inflation.
If one imagines the worst, that the invoices are multiplied by 10, there could be a 20-30% increase, not only in the price of the chopsticks, but of all the products, otherwise the companies will not be able to pay it.
It won’t be priced the same, which is why we’re really very concerned, Dominique Anract told RMC.
Bakeries have no choice in the face of inflation
The government has promised a tariff shield in 2023 for companies with up to 10 employees. However, this measure may not be enough. Bakeries are preparing for the worst.
According to Dominique Anract, the baker who does not increase his baguette will go out of business. But in today’s economy, she says, consumers will understand.
Due to inflation, the price of baguettes and cakes will have to increase. Bakeries can no longer cope with the rising cost of energy and raw materials.
We are therefore obliged to pass on this increase somewhere, admits Sandrine Ribot, president of the Mayenne bakers’ federation.
Mathieu and Eric Cartier take over the Aux Saveurs du Maine bakery and pastry shop in Sablé-sur-Sarthe, on Monday, October 3, 2022. Meeting. https://t.co/mY5EBAlQch
— Information from Sarthe (@SartheInfo) October 2, 2022
We don’t do it for fun, it’s not to make money, as they say. If we raise the price it is to keep our jobs and our bakeries in our cities, which are losing their business one after another.
Sandrine Ribot understands that this initiative risks angering consumers. But she insists that her business depends on it.
If we want to keep working and employing people, we have no choice. So the idea is to increase his bread, but keep his job, he insists.
However, customers should not be discouraged and buy less.
It is like the cat that bites its tail. If we sell less bread, we have less money, and if we have less money, we will have fewer employees and in the end we will not have more business, he worries.
#Inflation #Bakeries #increase #price #bread