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Caterers bite back; Food biz employs new ideas to counter price hikes.

Publication: Crain's New York Business
Publication Date: 15-SEP-08
Format: Online
Delivery: Immediate Online Access
Full Article Title: Caterers bite back; Food biz employs new ideas to counter price hikes.(News)

Article Excerpt
Byline: Joyce Hanson

Ratatouille-stuffed zucchini boats, grilled salmon, fried chicken and vegetarian moussaka were a few of the items on the lunch menu last week at a corporate event prepared by Manhattan-based caterer Paul Neuman.

A year ago, those same food items would have cost the client about $11 a plate. Now Mr. Neuman is charging $13, and next year he plans to raise the price another 8%.

"We're at the mercy of the markets, trying to charge prices that protect us against inflation,'' says Mr. Neuman. "But we also need to make customers feel like we're not trying to take advantage of the situation.''

With rising food prices and volatile fuel costs cutting into profits, New York City-based food-service...

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