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Hunger Pains: Restaurants Feel Sting of Surging Cost, Debts

Hunger Pains: Restaurants Feel Sting of Surging Cost, Debts. By CABBY Ryan A., Ruth B., Sharon B., Chris C. The Problem. Restaurants are seeing a drop in profits. Restaurants are closing Cutback of free extras Cutback of portions Higher food prices. Statistics.

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Hunger Pains: Restaurants Feel Sting of Surging Cost, Debts

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  1. Hunger Pains:Restaurants Feel Sting of Surging Cost, Debts By CABBY Ryan A., Ruth B., Sharon B., Chris C.

  2. The Problem • Restaurants are seeing a drop in profits. • Restaurants are closing • Cutback of free extras • Cutback of portions • Higher food prices

  3. Statistics • McDonalds- 0.8% loss in March • First loss in five years • Ryan’s Steakhouse- bankruptcy • Ruby Tuesday’s • Shares at $7.35 compared to $27.59 a year ago • Ponderosa- 4.5% loss

  4. Causes • Rising Food Prices • Added $9 million to Annual Food Costs • Grain- $5 to $8 • Egg prices tripled • Rising Minimum Wage • 12% increase by summer • Nation’s 3rd largest employer • Casual Dining is the first inferior good to go. • Woman in the work force leveling off. • Quality of Prepared Food at grocery stores increase.

  5. Ways to Save • “Less Sauce” on main entrees and sauces by request • Ruby Tuesday’s research • Switch suppliers • Saved $800,000 on broccoli and $500,000 on mashed potatoes • New frying system that reduces cooking oil consumption • Village Inn and Baker’s Square • Smaller “taster slices” • Reduced portions of hash browns and fries

  6. What can you do? • Restaurants are hoping tax rebate checks will boost sales.

  7. Questions????

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