Odd Lots What a Bakery Can Tell Us About the Economy Right Now
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Dec 22, 2022 Ken Jarosch, owner of Jarosch Bakery in Elk Grove Village, shares his firsthand experience navigating today's economic challenges. He discusses how rising ingredient and labor costs are reshaping pricing strategies for baked goods. Ken reveals the impact of labor shortages and inflation on his business, as well as innovative methods he's using to attract and retain workers. He emphasizes the importance of local bakeries in understanding broader economic dynamics, especially during peak seasons.
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Stabilized Ingredient Costs
- Jarosch Bakery's ingredient costs have stabilized at high levels since the last holiday season.
- Labor costs, however, continue to rise.
Strategic Pricing
- Jarosch Bakery strategically raises prices during widely reported events like supply shortages or inflation.
- This minimizes customer complaints while capitalizing on market conditions.
Price Increase Strategy
- Raise prices when all input costs rise significantly to avoid becoming a charitable organization.
- Use math to determine necessary increases, considering overhead and profit margins.