Chicken Wing Economics

Prudent purchasing decisions have to be made with the economy in mind and buyers of chicken wings are experiencing this first hand. According to an article in the New York Times, the cost of chicken wings, often considered scrap, has now exceeded the cost of chicken breast. Wholesale buyers of chicken have never seen this pricing model before and it is significantly impacting menu prices and supermarket baskets across the United States.

Here is where supply meets demand. The growth of chicken wing restaurants, and the addition of chicken wings to many fast food menus, is driving increased demand for the product. This demand is considerably higher during the fall football season and prices are expected to fall after the Super Bowl in February. And there is a behavioral issue driving demand as well. Many of those who are cutting back on their personal budgets feel that a plate of chicken wings is a rewarding treat and an affordable luxury.

A chicken by-product, made famous at the Anchor Bar in Buffalo, is now the hottest snack around.  How is supply and demand impacting your business? I’ll bet the napkin suppliers are seeing a boost of business as well!