Dickey's BBQ ‘definitely seeing recession-type behavior': CEO
Inflation accelerates more than expected in June to new 40-year high
Dickey's Barbecue Pit CEO Laura Rea Dickey provides insight into the food industry and how fuel and food costs continue to burden restaurant owners on ‘Cavuto: Coast to Coast.’
Dickey's Barbecue Restaurants CEO Laura Rea Dickey noted on Thursday that her restaurants are "definitely seeing recession-type behavior."
"We are seeing folks use more coupons," Dickey told "Cavuto: Coast to Coast" on Thursday. "We are seeing folks come and want more leftovers, so they’re buying more family packs as opposed to individualized meals."
She also noted that her customers have been "ordering more daily specials," pointing to an "interesting trend" that she said is "different than recessions before."
"We are seeing folks who are ordering more delivery because they do not want to pay for the fuel themselves seemingly," she told host Neil Cavuto, stressing that "fuel is so high that folks are opting to pay a set delivery price."
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The national average for a gallon of gas was $4.60 on Thursday, about 15 cents lower that the week before and 40 cents lower than the month before when the price of gas was more than $5 a gallon, according to AAA.
Dickey provided the insight the day after the Labor Department revealed that inflation accelerated more than expected to a new four-decade high in June as the price of everyday necessities remains painfully high, exacerbating a financial strain for millions of Americans.
The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods, including gasoline, groceries and rents, rose 9.1% in June from a year ago. Prices jumped 1.3% in the one-month period from May. Those figures were both far higher than the 8.8% headline figure and 1% monthly gain forecast by Refinitiv economists.
The data marked the fastest pace of inflation since December 1981.
FOX Business' Cheryl Casone reports on June's Consumer Price Index released Wednesday, which revealed inflation now sits at a fresh 40-year high.
Energy prices rose 7.5% in June from the previous month, and are up 41.6% from last year, according to the Labor Department. Gasoline, on average, costs 59.9% more than it did one year ago and 11.2% more than it did in May. The food index, meanwhile, climbed 1% in June, as consumers paid more for items like cereal, chicken, milk and fresh vegetables.
Dickey noted on Thursday that there has been "some relief in the protein markets."
"We are seeing, for example, brisket was down about 20 cents a pound in July. Ribs were down about 90 cents a pound in July," she said, adding that "some relief" for smoked chicken wings is expected.
Laura Rea Dickey, the CEO of Dickey's Barbecue Restaurants, explains inflation's impact on her customers. (Dickey's BBQ)
She then noted that consumers are likely not seeing the impact of those drops in prices because of the cost of fuel.
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"So while we are seeing the good news in protein, it’s the fuel cost that’s impacting every piece of the supply chain - and that is why you’re still seeing those incredibly high prices," Dickey said.
FOX Business’ Megan Henney contributed to this report.