July 10, 2012
Corn Price Gain Seen Prompting Higher Meat, Soda Costs
towns I learned early that "Knee High
by the Fourth of July" was more than
just a trite saying. But it didn't
happen this year in most growing
areas so corn prices are rising. And
the continuing drought will impact
Hedging might soften the impact but
eventually restaurant Operators will
have to absorb the increased costs.
That will likely happen in the fall, just about the time QSRs will begin comping against
the warm winter weather of 2011/2012. Of course, the only answer from corporate
marketing will be more discounting and "value". As we've written before, investors and
analysts don't understand the impact of a warm winter. If sales soften in the fall they'll
over react and corporate headquarters will spend buckets of franchisee money giving
away food to improve same store sales.
Your fourth quarter and first quarter 2013 marketing calender is about to change dramatically.
>>> Corn Price Gain Seen Prompting Higher Meat, Soda Costs - Bloomberg: