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Grab a Bite? Prices in the food away from home industry during the COVID-19 pandemic

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  • Solórzano Diego

Abstract

The pandemic generated heterogeneous demand shocks in the food away from home industry's consumption channels: on-site and deliveries/takeaways. Hence, price adjustments by consumption channel could have also been different. This study examines dishes' prices intended to be consumed as deliveries, which come from an online food ordering and delivery platform in Mexico City (CDMX); as well as those aimed at on-site consumption, which are considered in CDMX's CPI. I document that during part of the period between April 2020 and March 2022 delivery prices grew at a faster rate than those for on-site consumption. This is consistent with the idea of positive demand shocks for delivery prices and negative for on-site prices. By March 2022, their cumulative price growth across both consumption channels was similar.

Suggested Citation

  • Solórzano Diego, 2023. "Grab a Bite? Prices in the food away from home industry during the COVID-19 pandemic," Working Papers 2023-18, Banco de México.
    • Handle: RePEc:bdm:wpaper:2023-18
    as

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    File URL: https://www.banxico.org.mx/publications-and-press/banco-de-mexico-working-papers/%7B5342553C-BCC6-6082-4609-AFD0FA18E6C7%7D.pdf
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    More about this item

    Keywords

    Inflation; Nominal rigidities; Restaurants; Machine Learning;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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