Coalition of Franchisee Associations

November 12, 2016

Chicago Tribune on Menu Prices

Food prices are falling. Why aren't restaurant bills lower too?

1 comment:

Anonymous said...

It wasn't that long ago that the common rent on a franchisee store was 8.5%. It is not unusual today to have rents as high as 15%. It is unlikely that any stores recently opened will have rents under eleven per cent (11%). In addition to the traditional cost of opening a new store operators are spending extra money to buy down rent to 12%. Unreasonably high rents, deep discounting, rising interest rates, rising labor cost, increasing bank fee's, insurance to name but a few are all part of the pricing structure. Only someone uninformed about the restaurant business would ask why are restaurant prices not coming down? Falling food cost at the back door certainly helps but it does not come close to allowing prices to be reduced.