Byline: Daniel Gross; With Miyoko Ohtake In San Francisco

Everyone's talking about the rising costs of food. But for most Americans, the reality isn't so dire.

Every day, Bill Higgins, co-owner of Real Restaurants--a group of 13 San Francisco eateries including the popular Fog City Diner--confronts the reality of food inflation. "Prices have increased, whether it's flour, corn, dairy, meat." While the company has boosted prices by 25 to 50 cents per item, Higgins hasn't passed on all the higher costs to diners. Instead, he's taken cost-cutting actions like reducing workers' hours and keeping the lights off until a few minutes before opening.

Such efforts to ...