Grab a Bite? Prices in the Food Away from Home Industry During the Covid19 Pandemic

Due to social distancing measures, among other health related policies, the Food Away From Home (FAFH) industry has been one of the most affected by the Covid19 pandemic. This study examines FAFH price-setting behavior in Mexico City from two complementary angles. First, using web scraped data from an Online Food Ordering and Delivery (OFOD) platform, classified through machine learning techniques, this study shows that between April 2020 and March 2022 (i) dish categories changing more (less) frequently prices do so by smaller (greater) margins, (ii) multi-outlet restaurants tend to change their prices less often but by a larger size than independent restaurants and (iii) periods characterized with increasing (decreasing) number of Covid19 cases are associated with more (less) frequent price changes. Second, this study provides evidence that during most part of the pandemic the price index computed with data from the OFOD platform seems to reflect increasing input-costs in the FAFH industry, while Mexico City’s FAFH CPI does not. Demand shocks affecting in opposite directions consumption channels, i.e. deliveries and on-site dining, might have prevented passingthrough input-costs onto prices. These empirical findings provide insights for a nonnegligible fraction of households’ consumption basket during the Covid19 pandemic.JELE31, L16.KeywordsWeb scraped data; Inflation; Food away from home