{"id":758671,"date":"2026-07-12T14:40:10","date_gmt":"2026-07-12T14:40:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/758671\/"},"modified":"2026-07-12T14:40:10","modified_gmt":"2026-07-12T14:40:10","slug":"a-restaurant-menu-demonstrates-the-frightening-power-of-inflation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/758671\/","title":{"rendered":"A restaurant menu demonstrates the frightening power of inflation"},"content":{"rendered":"

\"\"<\/a>The Open Kitchen restaurant opened in 1952 on West Morehead Street in Charlotte.<\/p>\n

By David Enna, Tipswatch.com<\/p>\n

Ever since COVID isolation changed our lives, my wife and I rarely eat out anymore. That leaves a six-year gap in our \u201crestaurant awareness\u201d and now every time we go out for breakfast, lunch, or dinner, we suffer sticker shock. These prices are crazy!<\/p>\n

Over the years, as part of my inflation-watching duties, I have been following prices at one of my favorite \u201ccomfort food\u201d restaurants in Charlotte, The World Famous Open Kitchen<\/a>, operating since 1952 at the same location about mile and half from our home.<\/p>\n

The restaurant was founded by Steve Kokenes, who was Greek, not Italian. His menu of pizza, lasagna, spaghetti and other \u201cinternational\u201d cuisine was a rarity for Charlotte in those days. The city didn\u2019t get an \u201cauthentic\u201d Italian restaurant \u2013 run by actual Italians \u2013 until the late 1980s. But that didn\u2019t matter, the Open Kitchen specialized in simple, tasty comfort food and it prospered.<\/p>\n

Its location \u2014 once a dreary area of warehouses and factories \u2014 is now a booming area of modern apartments, art galleries, trendy breweries and \u201cartisan\u201d restaurants, very close to Bank of America Stadium. It\u2019s now a very valuable piece of property.<\/p>\n

\"\"<\/a>Click on image for larger version.<\/p>\n

The restaurant is still run by members of the Kokenes family, who wait tables and run the cash register. And they have a remarkable collection of Charlotte memorabilia displayed all over the walls.<\/p>\n

What really caught my attention on a past visit was a 1963 menu posted by the entrance. It\u2019s especially interesting since today\u2019s menu contains many of the same items \u2013 with exactly the same names \u2013 63 years later. Aha! This offers a unique look into inflation over the last 63 years, and \u2026 what could be in store for our future.<\/p>\n

Inflation is a thing<\/p>\n

Back in 1963, $1 was worth one dollar. And that is still true today. But adjusted for inflation (based on the Bureau of Labor Statistics\u2019 Inflation Calculator<\/a>) it takes $10.99 in today\u2019s dollars to equal the buying power of $1 in May 1963. That is an increase of 999%, and it is my baseline for comparisons of price changes from 1963 to today.<\/p>\n

\"\"<\/a>Click on image for larger version.<\/p>\n

In this chart I have included data on important areas of the U.S. economy in the last 63 years. Gas prices, for example, have increased 1,420%, higher than inflation. Median home prices are up 2,140%, double the rate of U.S. inflation \u2014 which explains a lot about why housing is unaffordable. <\/p>\n

If you were invested in the U.S. stock market, however, you did extremely well. The Dow Jones Industrial Average has increased at a rate 7 times the rate of inflation. Again, this tells you something about our long-running and seemingly never-ending bull market.<\/p>\n

At the same time, the U.S. minimum wage at $7.25 has lagged well behind inflation. It is more or less meaningless today .<\/p>\n

The Open Kitchen: Then, and now<\/p>\n

Let\u2019s look at Food Away From Home, a U.S. price index that has increased 1,345.9% over the last 63 years. Since my last price check in 2021, it is up 29.2%. This is a key variable for judging restaurant prices.<\/p>\n

Today\u2019s Open Kitchen menu prices are mostly higher than overall inflation (999%) but pretty much in line \u2013 with some variations \u2013 with food-away-from-home inflation (1,346%) over the last 63 years.<\/p>\n

For example, Spaghetti with Meat Balls and Mushrooms (one of my favorite Open Kitchen offerings) costs $19.75 today versus $1.50 in 1963, a 1,217% increase \u2014 higher than overall inflation but lower than the food-away-from-home index.<\/p>\n

Spaghetti with Chicken Livers is a fantastic bargain at $16.75, but \u2026 er \u2026 who is ordering that?<\/p>\n

My pre-COVID memories of Open Kitchen prices generally fall around $10 to $13 for the pasta dishes (which are very good). That was the range still found in 2021. Five years later, prices are up about 40% for most items, higher than food-away-from-home inflation during that time.<\/p>\n

A key thing to note is that Open Kitchen\u2019s higher prices generally involve dishes with meat or sausage, where prices have skyrocketed in recent years, up about 55% during that time \u2014 well above general food-away-from-home inflation at 29.2%. (Don\u2019t order that extra meatball!).<\/p>\n

When my wife and I go to Open Kitchen, we generally order a large Greek salad ($12.75) and a pasta dish with either meatball or sausage ($15.50) and then we split both items. A half-liter carafe of Chianti goes for $9, a very good deal. Overall, this is comfort food at a reasonable price.<\/p>\n

Inflation is a real danger<\/p>\n

Yes, I was alive in 1963 but I wasn\u2019t driving or paying for meals. My biggest expense might have been 25-cent Saturday movie matinees. I saw \u201cJason and the Argonauts\u201d at least five times. Today\u2019s price: About $12 for kids, up 4,700%. (Are today\u2019s movies better?)<\/p>\n

Inflation is an unrelenting force. When you take a very long view of prices, you can see how even moderate inflation is devastating to purchasing power. Inflation rose 999% over the last 63 years, and 24.5% over the last five years (an annual rate of 4.5%). It stands today at 4.2%. <\/p>\n

Think about it: Our dollars have lost at least one-fifth of their buying power in just five years.<\/p>\n

Even a very reasonably priced restaurant like the Open Kitchen is starting to look pricey, at least by its past standards. And then add in the expected 20% tip, up from 15% in the past, and Charlotte\u2019s 9.25% sales tax on prepared meals (up from 3% in 1963).<\/p>\n

Is it worth it? Yes, at least for the comfort and tradition of a restaurant like the Open Kitchen. Here\u2019s a 2025 video history of the restaurant, where you can easily see the appeal:<\/p>\n<\/p>\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n

\"\"<\/p>\n

Donate? This site is free and I hope to keep it that way. Some readers have suggested having a way to contribute. I welcome donations, any amount. And FYI, ads on this site pay for about one visit to Costco.<\/p>\n

PayPal link<\/a> \/ Venmo link<\/a><\/p>\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n

Follow Tipswatch on X<\/a> for updates on daily Treasury auctions and real yield trends (when I am not traveling).<\/p>\n

Feel free to post comments or questions below. If it is your first-ever comment, it will have to wait for moderation. After that, your comments will automatically appear. Please stay on topic and avoid political tirades. NOTE: Comment threads can only be three responses deep. If you see that you cannot respond, create a new comment and reference the topic.<\/p>\n

David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not \u201cget rich\u201d investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.<\/p>\n

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