1. Grocery Stores
During challenging economic times, many people stop dining out and cook at home. This results in a boost in sales at grocery stores. People will always need to eat regardless of the economic climate and food is a basic necessity. We cannot live without it and therefore it is price inelastic. Thus, a significant rise in food prices will lead to an insignificant fall in the demand of food.
Inflation is really challenging the restaurant owners who've survived the Pandemic and they've been forced to increase menu prices. Some 90,000 restaurants in the U.S. have closed down temporarily or permanently since the pandemic, according to the National Restaurant Association. Those that survived, Riehle says, are running on razor thin margins, often as little as 1% of sales.
