Cost-conscious diners seem to have a bone to pick with restaurants that serve chicken dishes of an upscale nature, and more importantly, that price them as such.
Recently, The Wall Street Journal declared that America has entered an “era of chicken angst,” arguing that the protein has become the latest commodity to find itself on the chopping block as the prices of dishes starring the humble yardbird continue to spike at restaurants.
The article likened the phenomenon to past consumer backlashes ranging from the panic over premium burgers in the 2000s to the hysteria over avocado toast in the 2010s – and the onslaught against my generation, Millennials, for allegedly spending all of our money on avocado toast instead buying houses. (Side note: I almost always made mine at home; thank you very much.)
Isaac Bernal Carbajo, Executive Chef of the Representation of Spain to the UN, also drew parallels between the recent uproar over chicken, which price-sensitive consumers often flock to for its affordability, and the outrage toward gourmet burgers around the turn of the century.
“Recent conversations around the price of chicken remind me a lot of what happened years ago with premium burgers. The issue is not simply how much a dish costs. It’s the customer’s perception of value,” Carbajo told FI.
“Customers are commonly willing to pay more for a quality cut of beef, seafood, or fish because they view those products as premium offerings. Chicken, on the other hand, is considered an everyday, affordable protein even though the actual costs have increased significantly,” the chef added.
According to Datassential, prices of chicken dishes at fine-dining restaurants have risen 22% in the last four years, with the median cost reaching $28. In contrast, fish and shellfish entrées clocked in at $25.
Carbajo says that, from an operational standpoint, restaurants have experienced cost increases across the entire supply chain, including cheaper ingredients like chicken.
“In some cases, product costs have risen to the point where maintaining menu prices is simply no longer sustainable. Passing those increases directly to guests is often more challenging with chicken than beef or seafood,” he told FI, also noting that many consumers unconsciously compare today’s chicken prices to those from five or ten years ago.
In response, operators are increasingly focusing on perceived value to protect margins without losing customers.
“That may mean improving side dishes, using more refined culinary techniques, highlighting product quality/sourcing, or presenting the dish as part of a broader dining experience. Guests are generally more comfortable paying a higher price when they clearly understand what they’re receiving in return,” he told FI.
Joey Jurgielewicz, III, director of business development for Joe Jurgielewicz & Son, Ltd. (JJS), one of the largest purveyors of Pekin duck for the U.S. restaurant industry, also pointed to perceptions of value, as well as difficulty of preparation.
“Diners want to experience a memorable culinary experience they cannot recreate at home. At the same time, they view chicken as an affordable protein that can easily be picked up from the local market and made at home,” Jurgielewicz told FI.
However, duck is often viewed quite differently, as acknowledged in the last line of the WSJ article: “Customers are a lot less likely to blink at a $65 duck breast.”
“Most consumers view duck as too complicated to prepare at home, but it is as easy as chicken. Serving duck provides an elevated culinary experience that consumers do not think can be easily recreated; therefore, they are willing to pay more for the experience,” Jurgielewicz explained.
Food for Thought Leadership
Food retail is undergoing a fundamental transformation, and few people have a better vantage point than the SupermarketGuru Phil Lempert. In this episode of Food for Thought Leadership, Lempert joins FI’s Chris Campbell to discuss the forces reshaping grocery, from inflation and private label growth to changing consumer expectations around health, wellness, and transparency.
