top of page
Writer's pictureAdmin

Rising costs, shifting habits: Dining out becomes luxury for average Guamanians




By Ron Rocky Coloma

 

For Jayvee Elomina of Maite, dining out has been a routine part of his week. On average, he would dine out at least five times a week.


“This would either be at a fast-food restaurant or casual dining spot,” the 22-year-old said. “The amount of time hasn’t really changed, but where I started to frequent more often has. I’ve started opting for places with more deals or promos where I can save as much as I can,” he added. “If anything, it is cheaper to eat at home if and whenever possible.”


This shift in behavior reflects a broader trend among Guam’s diners. Even for foodies like Elomina, rising costs are changing the landscape of dining out. While he still enjoys the atmosphere of casual restaurants— “It’s great for friends to socialize while enjoying some of our favorite foods,” he said—he’s noticed a significant impact on his budget.


“Fine dining establishments for me are a treat and would usually only be an option for special occasions,” Elomina said. “But even casual spots are getting expensive. A dollar or two more per meal might not seem like much, but it adds up over time. Now, a fast-food meal for two can easily go over $30.”


According to the Guam Chamber of Commerce, the average price for a sit-down lunch for two is $40, and for dinner, $80.


“It depends on the restaurant and the item. With a few drinks— sodas or about two beers—I spend an average of $150 for three. That’s just for the meal, without appetizers. It doesn’t include the service fee and the tip,” said Joseph Irish of Barrigada Heights. “I am aware that the service charge is not the same as the tip. So, on top of the service fee tacked into the food bill, I spare extra dollars for the wait staff.”


He noted that a popular casual diner at Micronesia Mall, which used to have a price menu starting at $10.99, now serves the lowest-priced item at $17. “So, yeah, eating out is pretty much a luxury these days," Irish said.



The financial strain isn’t just felt by diners. For restaurant owners and managers, the pressures of operating in Guam’s challenging economic environment are immense. Rising overhead costs, supply chain disruptions and shifting consumer preferences are forcing the industry to adapt.


“Overhead expenses—such as rent, utilities, insurance and equipment maintenance—are key components that restaurant owners must account for when setting menu prices,” said Chito de Guzman-Aguilo, the director of food and beverage at Guam Reef Resort and Spa. “Gas prices, especially on Guam, have a significant effect across the food industry. They contribute directly to food price increases.”


Labor costs compound these challenges. “Labor costs are a very challenging issue, not only in the food and beverage industry but across all levels of the market,” she added. “Labor costs have increased significantly in recent years since the pandemic due to a lack of manpower and employment wages and regulations. Maintaining good employees is a hardship to our industry.”


Adding to the complexity are supply chain disruptions, which have become increasingly common due to global factors.


“Supply chain disruptions and shortages are growing due to climate change and logistics issues,” De Guzman-Aguilo said. “This disrupts local and non-local food systems, which can lead to negative impacts such as high transportation costs, delays in orders and inventory shortages. Unfortunately, Guam’s local farmers don’t produce enough to supply the food chain industry.”


Inflation is another critical factor that impacts both businesses and consumers. According to the Bureau of Statistics and Plans’ second quarter report in 2024, Guam’s consumer price index rose by 4 percent over the year.


“Inflation means consumers and companies lose purchasing power when the prices of items they buy, like food, increase,” De Guzman-Aguilo said. “This can lead to household belt-tightening, and businesses risk seeing their margins decline when input costs rise.”


For diners, belt-tightening means adjusting the restaurant-dining routine. “My husband and I used to go out to eat twice a week. Now we go out just once a week,” said Tess Venzon-Schwab of Agana Heights.


Anna Marie Alegre of Mangilao dines out with clients for business meetings, spending an average of $50 per person. “It doesn’t really have an effect on me when it comes to business cost,” Alegre said. “But when dining leisurely with friends and family, cost is a factor and we have to cut down on dining out one-third of the year.”


For restaurant owners, finding ways to manage costs while maintaining quality is a constant challenge. “Rising food and labor costs impact the profitability of restaurants,” De Guzman-Aguilo said. “Many of us in the industry need to adjust our pricing or menu offerings to remain competitive and maintain profitability.”


Portion sizes have also been affected. “Inflation and supply chain issues lead to changes in the cost of ingredients and, sometimes, changes in portion sizes,” she added. “Most of the time, we have to be inventive and resourceful to maintain the quality of food items in order to satisfy our dining guests. We can’t shortcut the recipe; otherwise, you might as well not serve it at all.”


Marites Barrogo, owner of Laguna Best Restaurant, has made similar adjustments. “I’ve started focusing more on serving vegetables,” she said. “They’re more affordable than meat, and it helps me keep our meals accessible for everyone. Back in 2006, two choices were just around $4 to $4.50, but now that price has doubled.”


Barrogo has also leaned into social media to attract customers. “The past few months have been slow for dine-in,” she said. “To bring people in, I’ve been promoting our prices on Facebook, trying to remind folks we’re here for them.


“I’m even thinking about bringing back our free melon juice,” she added. “I used to offer it, but the rising costs made it hard to keep up. Still, it might be worth it to make our customers feel that extra warmth and welcome again.”


For diners like Elomina, rising costs have made him more selective about where he eats. “I have started to dine out less at my local favorites and have opted to choose venues that offer deals or promos,” he said. “Any places with reward programs or meal deals have been my priority when thinking of where to eat.”


Gina Tabonares-Reilly of Barrigada said when dining out, she and her husband skip the buffet. “As we grow old, we can’t eat as much as we used to. So for us, it’s not worth paying $50 per person if we would only make a small plate out of one corner of the buffet,” she said.


Going into a restaurant with a big family is out of the question. “It’s more practical to cook at home. We can prepare a wider selection of food that we like,” Tabonares-Reilly said. “You may be able to pay $50 for a meal at the restaurant but you’re not even sure if you’ll like it.


 Restaurant owners are finding creative ways to address these challenges. De Guzman-Aguilo emphasized the importance of collaboration. “Strong relationships with suppliers and vendors help businesses gain access to high-quality ingredients and services at competitive prices,” she said. “Supporting local farmers is one way we can source fresh ingredients while bypassing extra costs.”


Customer feedback also plays a crucial role. “Addressing customer concerns and suggestions is important because that’s how you improve and build relationships with your guests,” she added.


Barrogo, meanwhile, is focused on maintaining a personal touch. “Our catering services have stayed steady, thanks to our regulars,” she said. “It’s those loyal customers who keep us going.”


For both customers and restaurateurs, the future of dining out on Guam will depend on finding a balance between cost and value.


“The restaurant business is changing a lot,” De Guzman-Aguilo said. “We have to adopt constant changes and trends to stay flexible and successful. Guests are willing to pay more if they feel they’re getting something special in return. We need to show them their money’s worth—even those who are price-conscious,” De Guzman-Aguilo said.


Barrogo acknowledged that the dining industry isn’t easy. “But.” She added, “It’s worth it when you see your customers happy. As long as we focus on quality and making people feel at home, the future will be bright.”




 

 

 Subscribe to

our digital

monthly edition

Pacific Island Times

Guam-CNMI-Palau-FSM

Location:Tumon Sands Plaza

1082 Pale San Vitores Rd.  Tumon Guam 96913

Mailing address: PO Box 11647

                Tamuning GU 96931

Telephone: (671) 929 - 4210

Email: pacificislandtimes@gmail.com

© 2022 Pacific Island Times

bottom of page