By David Enna, Tipswatch.com
Ever since COVID isolation changed our lives, my wife and I rarely eat out anymore. That leaves a six-year gap in our “restaurant awareness” and now every time we go out for breakfast, lunch, or dinner, we suffer sticker shock. These prices are crazy!
Over the years, as part of my inflation-watching duties, I have been following prices at one of my favorite “comfort food” restaurants in Charlotte, The World Famous Open Kitchen, operating since 1952 at the same location about mile and half from our home.
The restaurant was founded by Steve Kokenes, who was Greek, not Italian. His menu of pizza, lasagna, spaghetti and other “international” cuisine was a rarity for Charlotte in those days. The city didn’t get an “authentic” Italian restaurant – run by actual Italians – until the late 1980s. But that didn’t matter, the Open Kitchen specialized in simple, tasty comfort food and it prospered.
Its location — once a dreary area of warehouses and factories — is now a booming area of modern apartments, art galleries, trendy breweries and “artisan” restaurants, very close to Bank of America Stadium. It’s now a very valuable piece of property.
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.
What really caught my attention on a past visit was a 1963 menu posted by the entrance. It’s especially interesting since today’s menu contains many of the same items – with exactly the same names – 63 years later. Aha! This offers a unique look into inflation over the last 63 years, and … what could be in store for our future.
Inflation is a thing
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’ Inflation Calculator) it takes $10.99 in today’s 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.
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 — which explains a lot about why housing is unaffordable.
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.
At the same time, the U.S. minimum wage at $7.25 has lagged well behind inflation. It is more or less meaningless today .
The Open Kitchen: Then, and now
Let’s 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.
Today’s Open Kitchen menu prices are mostly higher than overall inflation (999%) but pretty much in line – with some variations – with food-away-from-home inflation (1,346%) over the last 63 years.
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 — higher than overall inflation but lower than the food-away-from-home index.
Spaghetti with Chicken Livers is a fantastic bargain at $16.75, but … er … who is ordering that?
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.
A key thing to note is that Open Kitchen’s higher prices generally involve dishes with meat or sausage, where prices have skyrocketed in recent years, up about 55% during that time — well above general food-away-from-home inflation at 29.2%. (Don’t order that extra meatball!).
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.
Inflation is a real danger
Yes, I was alive in 1963 but I wasn’t driving or paying for meals. My biggest expense might have been 25-cent Saturday movie matinees. I saw “Jason and the Argonauts” at least five times. Today’s price: About $12 for kids, up 4,700%. (Are today’s movies better?)
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%.
Think about it: Our dollars have lost at least one-fifth of their buying power in just five years.
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’s 9.25% sales tax on prepared meals (up from 3% in 1963).
Is it worth it? Yes, at least for the comfort and tradition of a restaurant like the Open Kitchen. Here’s a 2025 video history of the restaurant, where you can easily see the appeal:
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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 “get rich” 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.
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