Food may be expensive, but here’s why it’s actually cheaper than you think

Food generally doesn’t make the front page until there’s a problem. And from the price of eggs, to the presence of heavy metals in dark chocolate, to the divisive debate over plant-based meat, we’ve been seeing a lot of food-related problems recently.

Last month, there was much ado about the closing (or “reimagining”) of Danish restaurant Noma, once celebrated as the best restaurant in the world and the thinly-veiled inspiration for the horror/mockumentary film The Menu.

Meanwhile, surveys are popping up citing “value” as the number one driver for consumers making food choices. Even as inflation finally begins to plateau, many still believe that food is too expensive — and those who sell food are either corporate profiteers or out of touch elitists. 

The thing is, there’s more to value than simply price. 

I’ve taught home cooking for over two decades – including a stint at New York University – and owned a cooking school and cafe in New York City for eight years. I have a masters degree in Food Studies (yes, there is such a discipline). Now I am the founder and CEO of a small food company. I got into this line of work because of a deep belief that home cooking and consumer choice are fundamental partners in creating a better American food system. 


The Danish restaurant Noma, once considered the top table in the world, closed its doors earlier this year, in part because of the higher cost of ingredients.
The Danish restaurant Noma, once considered the top table in the world, closed its doors earlier this year, in part because of the higher cost of ingredients.
AP

The reality is food costs are higher than most of us can remember. Last year, the cost of food rose close to twice as fast as inflation, according to the food at home Consumer Price Index (11.3% vs. 6.5%), so the cost of groceries, or dinner out,  is outpacing the rising costs of other key purchases. Most of that food inflation stems from huge, global disruptions to the supply chain (war, fuel, labor) that are generally hidden from consumers. There are, to be sure, food companies who kept prices the same but shrunk the number of cookies or chips in the bag (aka “shrinkflation”), and others who simply jacked up food costs with impunity. 

But most smaller, privately owned food businesses (and a few big ones, too) operate on tiny margins and a mission to feed people better food. If we don’t support them, we’ll be the worse for it. Because cheap food is not inherently inexpensive if it’s made with crappy ingredients, and there’s much more to a label than the price.


Why is this man stressing? Because the price of groceries and other things we eat has risen 11.3% over the past year, far outpacing inflation.
Why is this man stressing? Because the price of groceries and other things we eat has risen 11.3% over the past year, far outpacing inflation.
Getty Images/iStockphoto

Consumers have every right to stop buying a product or frequenting a restaurant who’s cost offends them. But before the outrage sets in, here are a few things to consider: What’s the size of that business? Do you know anything about its ownership structure? Most importantly, are there real ingredients in their products? Is sugar up at the top of the label? While consumers haven’t always had to think about labor, or weather, or rent, this “polycrisis” is a good time to start thinking holistically about what we’re consuming and showing support for the businesses we want to see survive. 

The question we should be asking today isn’t why food is suddenly more expensive, but rather, why has food been so inexpensive for so many years? Since the end of World War II, American consumers have been trained to expect to pay very little for food as quality was exchanged for “efficiencies.”

The latter part of the 20th century saw the demise of the family farm and family-owned food businesses along with the proliferation of inexpensive packaged goods conglomerates racing to the bottom.

American consumption of sugar, salt, preservatives and saturated fat have all surged – in tandem with health care costs, insurance premiums and heart disease. 


A key casualty of the industrialization of the American food system has been a sharp decline in the number of family-run farms and family-run small food businesses.
A key casualty of the industrialization of the American food system has been a sharp decline in the number of family-run farms and family-run small food businesses.
Getty Images

Since the mid-1970’s, there has been a growing movement to expose this faustian food bargain. Scientists, farmers, journalists and chefs have been sounding alarms that the Standard American Diet is bad for the environment, encourages economic inequity and hurts your health.

Restaurants (like Noma) have tried to counter the influence of convenience culture by showcasing the quality and flavor of local, organic produce and smaller producers.

The “better food” movement has always been about improving consumer health by keeping small food producers and businesses alive. It’s also had trouble defining itself, which — along with higher prices, at times — has made it easy to mock and label (sometimes humorously). 

But the “premium” movement has pushed bigger companies to make better products and integrate more sustainable and healthful foods into their portfolios. The FDA has adopted stricter rules around sourcing and labeling which protect our farmers and our health.

Multiple studies show that Americans have gotten the message and are pursuing diets with fewer preservatives, pesticides, and refined sugars. Consumers (not just coastal ones) care about fair labor practices, environmental impact, animal cruelty, and nutrient density. Even with higher costs, small food businesses have been key sources of innovation on all these fronts.


While some food companies have opted to raise their prices, others have simply kept costs down by shrinking the size of their products — aka "shrinkflation."
While some food companies have opted to raise their prices, others have simply kept costs down by shrinking the size of their products — aka “shrinkflation.”
Getty Images/iStockphoto

A pandemic plus an economic downturn is a one-two punch for many food businesses, be they packaged grocery store brands or brick and mortar restaurants. And many have shut their doors with far less fanfare than Noma. It’s sad, but also a chance for a much-needed re-set. Crazy-expensive restaurants and the latest Instagram-launched, overpriced granola were probably never viable in the long term, anyway. 

But please don’t conflate the price of eggs or a $7 cup of coffee with a cynical dismissal of better-for-you — and better-for-the-environment — food businesses as a whole. Choosing value over quality may save money, but it also inhibits innovation and growth. And that is a cost we’ll all have to swallow.

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