The “Recession Special” - launched by Gray’s husband, Nicholas, in the early ’80s as a tongue-and-cheek retort to the economic downturn of the time - is still going strong, although the original $1.95 deal hasn’t been immune to inflation. “I think people need a spot out there that they can go to and get something hearty for not a lot of money.” “We have not raised our prices in seven or eight years, and I’m committed to not raising prices right now,” she told CNN. The hot dog restaurant has been hit by rising prices, like everyone else, but there has been a concerted effort to hold off as long as possible in passing those costs along to customers, co-owner Rachael Gray said. Gray’s Papaya, known for its economical franks and a “Recession Special” that has persisted through even the best of times, has found itself in an opportune place during a period when consumers are spending more on experiences but also seeking out comforts and deals amid high inflation. Roberto Machado Noa/LightRocket/Getty Images Gray's Papaya, the famous hot dog stand mentioned television and movies. On the corner of West 72nd Street and Broadway in Manhattan, a longtime hawker of hot dogs is having its best spring in its 50-year history. The balanced duality of hot dogs and architecture “It seems like consumers are continuing to make these trade-offs of what they find more valuable,” she said. At the same time, they’re cutting back elsewhere, holding back on those big-ticket items, trading down to private label and lopping off some of the in-home subscription services. This should lead to the emergence of recessionary conditions by midyear.”Ĭonsumers continue to shell out for experiences, be they pricey concert tickets, trips, or restaurant visits, said Amanda Belarmino, assistant professor of hospitality at the University of Nevada Las Vegas. “Further deterioration in the job market - the last remaining leg propping up the consumer - is bound to accelerate the downshift in consumer spending in the coming months. “The full effect of recent banking-sector turmoil and the associated tightening in financial conditions has yet to be felt,” Daco noted. However, economists say it is unclear whether this consumer “retrenching” is a return to more typical spending patterns or a perhaps a harbinger of a recession. “The consumer engine is sputtering,” said Gregory Daco, chief economist at EY.Ī softening has been expected just given the current economic conditions, coupled with a natural recalibration from post-lockdown splurges. The pattern makes January’s spending burst look more and more like a one-off spurt. Inflation-adjusted consumer spending was flat in March, marking the fourth time in five months that expenditures held steady or declined. There’s good news on the inflation front: Annual price growth fell to its lowest pace in nearly two years, the Commerce Department reported Friday.īut for consumers, the lengthy spell in the crossfire of persistently high prices and rising interest rates has taken its toll.
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