Trade deal pumps up tomato prices

The levy on tomatoes will impact the food industry in San Mateo County, particularly restaurants and shops that use tomatoes as the base ingredient in their menus. Whether purchased fresh, in cans, or bottles — consumers may spend an additional buck or two, so owners can offset the rising cost without sacrificing portion size or taste.

In the past, Garry Niver, co-owner of Villa Lucia’s Restaurant & Pizzeria in Redwood City, secured contracts with vendors for lock-in pricing, a fixed and often lower cost for ingredients agreed between parties, which could last for a year. For more than 25 years, he has managed food service operations and negotiated optimal prices for large-scale corporate events and music venues. 

Now that he manages his restaurant, he said he sources his tomatoes from a seller who imports from Mexico, and he buys them at street prices. With the recent tariff, he expects his supplier’s tomato costs to rise, which will have a domino effect on what his store offers.

“I actually am raising menu prices probably next month,” Niver said. “ I’ve already even redone the menu, reprinted it, so I’m just waiting, obviously, for the right time.”

Niver said his restaurant uses approximately 40 pounds of fresh tomatoes every week, in addition to the canned and bottled sauces he purchases. He currently pays his supplier a little under $40 for their weekly tomato orders, but he expects around a $5-$10 bump once the tariff takes effect. 

To compensate for the impending price hike, Villa Lucia plans to increase the menu by a dollar. Niver also reminded his kitchen staff to optimize their ingredients to avoid food waste.

San Bruno deli shop owner Mike Kharsa buys tomatoes for his sandwiches and salads. Most of the tomatoes he buys wholesale originate from Mexico, and if he wants to retain his food’s quality, small business owners like him “have to go with the flow” of the market so they can keep their shops running.

“It’s something that I have very little control over,” Kharsa said, who manages Grand Leader Market & Deli along San Mateo Avenue. “I have control over my business and what I have to do over here to stay profitable. Some of those things that are sort of out of my hands.”

Kharsa said that a similar scenario occurred when the price of avocados increased last year. His customers, like any other consumer, disliked price hikes, but soon showed understanding and adapted to the change.

Some entrepreneurs remain unfazed, however. Different Latin countries supply the produce section of Mi Tienda Supermarket in San Mateo, catering to the staple foods of various Latino communities and offering more affordable prices on ingredients rarely found in commercial grocery markets.

Owner Jose Ventura explained the prices of tomatoes will not rise any time soon because they are in season in Mexico. At his store, he sells his tomatoes for 50 cents per pound.

“Maybe, like in two months, they’re going up,” Ventura said. “All the tomatoes, mangoes, whatever, are in season. When it’s in season, it’s cheap, and when it’s not the season, it’s too expensive.”

While store-bought tomatoes may benefit some people in the community, Niver worries that the tariff will discourage people from dining in restaurants even more. According to him, his profit decreased by approximately 20% the last time they made a price adjustment. 

“If you look at our prices, they’re very competitive compared to other pizza chains … .” Niver said. “That was a little disheartening.”