How One Local Restaurant Is Meeting the Challenges of Inflation

As the inflation rate in the U.S. has continued to increase, many consumers and businesses have been negatively impacted. I checked in last week with Joe Cave, owner and operator of the popular The Pizza Cave (one of our favorites) on Highway 290 in Dripping Springs to see how inflation was affecting his overall profits and business practices.

Many of our readers will recognize Joe. Aside from being an authentic pizzaiola, he’s a thoughtful and articulate guy who has tirelessly pressured our government leaders to restore the Restaurant Revitalization Act. (He has shared his opinions on the RRA I in this space.)

Like many local independent operators, inflation has forced him to make changes in the way he operates The Pizza Cave. He’s gone to a unique strategy of adding higher ticket items to the menu (like Chicken Padano) to drive demand and increase volume. He feels that volume is the best cure for inflationary pressures and that higher demand even at lower margins can still yield a better net return.

High utility costs have forced him to raise some prices (only the second time in ten years) but he refuses to compromise on buying less expensive food supplies because he wants to continue to ensure the overall quality of his dishes. Another strategy is cross-training employees in multiple disciplines.

I asked if he anticipated another raise in his prices. He said that would try to avoid it, but that if inflation keeps rising he may have to consider a reduction in employee hours and scaling back on employees and/or menu items. But unlike like many restaurants he’s not going to default to across-the-board price increases as a matter of course.

Joe cares passionately about his family restaurant and that care is reflected in his food and the way customers are treated at The Pizza Cave. He’s pessimistic about how long the torrid increase in inflation will last, but he has multiple contingency plans should things get worse.

That being said, some of the best soups in Southwest Austin can be found at The Pizza Cave. The Creamy Pepper Piggy Chowder is one of my favorites. When a guy puts this much thought into preserving a way to care for his customers in a cycle of inflation I want to try his soups!!