Goodtimepolitics

Store Sales Falter, Franchisers Consolidate Vendors and Deliveries, Trim Portions and Play Up Cheaper Menu Items

November 21, 2008 · 3 Comments

“These restaurant operators are really operating under a perfect storm, dealing with record [high] commodity prices, higher labor costs with the minimum wage increasing and falling consumer demand,” says Robert Marzo, senior analyst of food service for F&D Reports, a retail consulting firm in Great Neck, N.Y. “Many of [them] can no longer offer the same quality ingredients that they have in years past, so they’re downgrading in any way that they can.”

They’re getting “creative with their recipes, using cheaper ingredients and offering smaller portions in an effort to stay afloat,” he adds.

Ruth’s Chris Steak House

Church’s Chicken

IHOP and Applebee’s

Marco’s Pizza

Tumbleweed Restaurants

SOURCE LINK : Here’s a look at a few efforts by chains and their franchisees to save money and draw in customers

So democrats don’t try a say that all this is cause by the Republicans, as it was the democrats who raise fed min wages! At the time I was posting on another discussion board and said that when the democrats took control of congress and raised the min wages that prices would go up and people would lose jobs and they have. Now with these businesses hurting Obama wants to raise their taxes and require them to provide healthcare for their workers along with still raisng fed min wages again…..if he does then the employees just as well sleep in and forget about having a job and head on down to the wel-fare office!

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3 responses so far ↓

  • lukemcgook // November 21, 2008 at 9:17 am

    “Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. Purge the rottenness out of the system.” — Andrew Mellon, on another occasion

    Some of these moves are just overdue and waiting for a bump. Think how many Starbucks there are in the world.

  • lukemcgook // November 21, 2008 at 10:06 am

    Just happened to run across a new economics paper, right after I’d read your comment on raising the minimum wage.

    “… a 10% increase in the effective minimum wage is associated with a 3.2% decrease in youth employment.” Raise the cost of hiring for entry-level jobs, and you get less hiring for entry-level jobs. Not hard to predict.

  • controller333 // November 24, 2008 at 1:38 pm

    No jobs, no money with Barack Hussein on a big spending spree.

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