November 4, 2010

Caution - Food Inflation Next Decade

Investors are counting on food inflation to
increase revenues to franchised restaurant
companies in 2011. Not the restaurants - just
the corporate side.

But can QSRs raise prices any further now that
all major brands have a value menu? Can Operators
sell $5.00 sandwiches? Is America ready for $8.00
"value meals"?

Sorry, but not me. I'm buying $3.00 meals on the
Dollar Menu!

The WSJ reports on food prices HERE


1 comment:

Richard Adams said...

McDonald's CFO from the Third Quarter conference call:

"And historically, we've said in the U.S., we need a 2% to 3% comp in normal times and Europe probably a 3% plus comp in normal times to grow margins. And so I consider this more normal times from the input cost side. The question will be exactly at what point will we be able to take some of that pricing? But our early look at some of the 2011 plans, markets are anticipating they'll be able to take some pricing next year."