The Business Journals - Week of June 6

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AWARD WINNING EDITORIAL

INCLUDING THE HUDSON VALLEY JUNE 6, 2022 VOL. 58, No. 23

westfaironline.com

AN UNWELCOME NEW NORMAL: SUPPLY SHORTAGES IN THE FOOD BUSINESS

Sports betting a financial winner for NY

BY EDWARD ARRIAZA

BY PETER KATZ

earriaza@westfairinc.com

Pkatz@westfairinc.com

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he food industry has been acutely impacted by supply chain disruptions that resulted in dramatic price increases and a scarcity of goods. Alina Dancho is one food industry professional who has attempted to mitigate the effects of the global supply chain disruption. Dancho runs Alina’s Cakes & Cookies in Fairfield, a small bakery that serves traditional European baked goods and treats. “Whatever I order that comes from Germany and Belgium, I ordered two paces ahead, so I’ve been ahead of the pricing as well because I knew it was coming,” Dancho said, adding that price increases affected flour, sugar, eggs and oil, all seeing an increase of more than 25%. Other regional businesses have been similarly affected by this supply bottleneck and skyrocketing prices. Executive Chef Jared Secor of Apropos Restaurant & Bar in Peekskill witnessed dramatic increases in certain food items, such as fingerling potatoes, which in one week had gone up 40%. “It seems that things that weigh a lot, weigh a lot for shipping companies to move and (there is) just more labor involved,” Secor added that heavier items have seen the most intense price hikes, noting that on “a 50-pound bag of potatoes, the price has changed dramatically.” Even elected officials have been concerned about the impact of supply chain disruptions on their local food industry outlets. Matthew Slater, town supervisor of Yorktown, observed that restaurants in his community are not only purchasing as much as they can, but must also contend with meeting order minimums. “When they do their weekly inventory, if they’re not crossing the minimum threshold, they can’t even order it,” Slater said. “They’re changing how often they put their orders in (for products), and obviously it impacts their menu and what they’re able to serve.” Even nonfood items have become

SUPPLY SHORTAGES

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ew York state has generated more than $267 million in tax revenues from mobile sports betting in the five months since it became legal, with $263 million coming from bets made on mobile devices and the rest coming from sports wagering at casinos. Assemblyman Gary Pretlow of Mount Vernon, who is chairman of the Assembly Committee on Racing and Wagering, said, “Back in March, I was quoted as saying, ‘We are well on the way to being the sports betting capital of the world.’ Mobile sports betting is an economic engine for New York. I am ecstatic with the revenue that has been generated for education, youth sports and problem gambling.” Gov. Kathy Hochul pointed out that the $267 million in five months represents far greater activity than has been seen in other states where sports-betting has been going on for much longer than in New York. According to Hochul, since November 2018, Pennsylvania has collected $253 million in sports-betting revenues while New Jersey has generated $229 million since June 2018, far below the amount New York has taken in during just five months. “In less than half a year, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers,” Hochul said. “I am committed to upholding responsible and effective gaming policies that will move the industry forward and continue to drive our state’s economic growth.” Tax revenues from mobile sports betting are allocated to help elementary and secondary education and also used to provide grants for youth sports programming, along with problem gambling prevention, treatment and recovery services.

Alina Dancho. Contributed photo.

SPORTS BETTING

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