Consumers may see changes at restaurants during drought

Jun. 25—Already limping from years of wildfires, power shut-offs, the coronavirus pandemic and lingering staffing shortages, Sonoma County restaurants are once again bracing for what could be a knockout blow to some as a statewide drought spikes food costs, cuts supply chains and limits water to the entire food system.

"Being a restaurant owner is about to be untenable," said Samantha Ramey, co-owner of Americana restaurant in Santa Rosa and Estero Cafe in Valley Ford.

That squeeze isn't limited to the bottom line as consumers may soon notice some significant changes at the table, ranging from water by request only to the very real possibility of food shortages, higher menu prices and potentially more drastic measures.

"Food prices will go up, so expect higher menu prices," said Crista Luedtke of Boon Eat + Drink, Brot and El Barrio in Guerneville. "People often don't make that connection," she said.

Produce and meat, especially beef, are already becoming less affordable and less available, according to many restaurateurs.

"Bacon shot up a dollar overnight," Ramey said. Her costs for the menu staple at both her restaurants went from an already pricey $9.65 to $10.65 the following day. Ramey was faced with the decision to either raise menu prices or face another financial hit.

"I just worry all the time," she said.

To really understand the issue, said Ramey, you have to unwind the food system back to the ranchers and farmers.

"We've got the driest ground you've ever seen. Ranchers are trucking in water and hay rather than having grass, and that's exorbitantly expensive," she said. Coupled with the fact that most processing happens hundreds of miles away (adding gas costs) and there are fewer workers willing to work at processing plants post-pandemic, the cost of beef and pork, specifically, is becoming prohibitively expensive.

Don't expect to see juicy lettuce on your burger or cucumbers fare much better. Fruits and vegetables are facing similar price hikes because of extreme water shortages, with some farmers deciding not to plant at all this year.

"We're just waiting for the other shoe to drop," said Naomi Crawford, owner of Lunchette in Petaluma.

"County Line Harvest isn't even farming this summer because they have no water. Their lettuces are a huge part of our menu. Luckily Paul's Produce still has water, so we've got their beautiful products, but we are keeping an eye on price increases, lack of availability and general poor overall quality due to extreme heat," she said.

"In the end, the consumer may be affected and have to spend more," she said.

Not all the news is bad. Larger restaurants like John Ash & Co. at the Vintners Resort and Stark Reality Restaurants including Stark's Steak and Seafood, Monti's, Bird and the Bottle, Willi's Wine Bar, Willi's Seafood and Bravas are faring a bit better.

Both businesses have locked in prices for meat and have stronger purchasing power because of their size.

"Prices have gone up over the years regardless and we have to react as best we can," said Terri Stark, co-owner of Stark Reality Restaurants.

"In the past when prices go up, we figure out ways to cut costs in other areas that are under our control, like paper goods, beer or liquor that won't affect customers. The end game is not to raise prices as a reaction," Stark said.

The company has also pre-negotiated beef prices, committing to a price for several years and allowing producers to anticipate selling prices.

"It's a gamble, but it's always worked out," said Mark Stark, the executive chef and co-owner of the restaurants.

The couple said they won't be offering water as guests sit down and will encourage customers to buy water from other countries without droughts, like Norway.

"We've got some nice Norwegian Voss for sale, and we'll offer it at cost," Terri Stark said.

At Vintners Inn, water is less of a problem. The property has its own wastewater treatment ponds, so is able to reuse gray water for irrigation.

"We're not wasting any of it," said Percy Brandon, general manager of the resort.

They've also built their own recycled greenhouse for lettuces and have more than an acre of on-property kitchen gardens that use drip irrigation.

During the pandemic they worked with a Bay Area meat purveyor who had lost many restaurant accounts and stockpiled meat for the future. The win-win allowed both to get the best prices. Brandon said it was a huge up-front investment but has paid off.

"Our chefs will have to pivot into what is available and the pricing changes, but we've been through a drought, and we have to think outside the box," Brandon said.

"There's always a challenge, but we have to be innovative in the restaurant business," he said.

You can reach Dining Writer Heather Irwin at 707-526-8544 or [email protected].

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