Full Breakdown
Rising Ingredient Costs Challenge Ethnic Restaurants in Brooklyn
1/29/2026, 1:16:31 PM
The Impact of Ingredient Price Inflation
In Brooklyn’s Bedford-Stuyvesant neighborhood, ethnic restaurants like Bati Ethiopian Kitchen and Brooklyn Suya are grappling with significant increases in ingredient costs, which are threatening their profit margins. Hibist Legesse, owner of Bati Ethiopian Kitchen, highlights the rising prices of essential ingredients, particularly onions, which have fluctuated month-to-month despite an overall decrease of 27.2% from 2024 to 2025. The average price consumers pay for food has risen by 3.1% in 2025 compared to the previous year, according to the USDA’s Food Price Outlook. This inflation is compounded by tariffs imposed during the Trump administration and ongoing economic pressures.
The Struggle for Profitability
Legesse notes that the wholesale price of beef has surged by 15.1%, while finfish prices have increased by 31.6% since last year. As a result, her restaurant's profit margins have dropped from 6-7% pre-pandemic to around 5% today. Hema Agwu, co-owner of Brooklyn Suya, echoes these concerns, stating that the costs of proteins like steak and salmon have also risen sharply. Agwu emphasizes the challenge of raising menu prices without alienating customers, leading to a 10% reduction in profit margins.
Broader Industry Trends
The National Restaurant Association (NRA) reports that wholesale food prices are 37% higher than before the pandemic. To maintain profitability, the average restaurant would need to increase menu prices by over 30%. However, many independent business owners, like Agwu, are hesitant to implement such drastic price hikes for fear of losing their customer base. Instead, Agwu is focusing on developing new products to adapt to the changing economic landscape.
Official Statements & Responses
The NRA has acknowledged the significant financial pressures facing restaurants, particularly those serving ethnic cuisines that often rely on specific ingredients. The organization emphasizes the need for strategic pricing adjustments while balancing customer retention.
Criticism & Opposition
Critics argue that the rising costs and subsequent price increases could disproportionately affect low-income communities that rely on affordable dining options. There are concerns that if restaurants cannot sustain their operations, it may lead to a loss of cultural diversity in the local food scene.
What's Next
As ingredient prices continue to fluctuate, ethnic restaurants in Brooklyn will need to navigate these challenges carefully. The focus on product innovation and strategic pricing will be crucial for their survival in a competitive market.