[central_va]

If a business is not profitable, it is finished. the only question is wether customers will be willing to pay for these increases in cost.

I'm not buying it. Labor is the same as meat and electricity. They are simply costs. Beef is up 189% since 2000. Did white castle go out of business?

[themidnightskulker]

IDK. go to a fast food joint today, and compare the # of emploeees to the same # from a couple of years ago.

You can get the same amount of work from 5 employees today as you could from 8 or 10 back then.

( 8 employees@ 7.00/ hr= 56.00/hr labor cost)

(5 employees@ 7.00= 35.00/hr labor cost.)

1/4 lb beef patty=.50 then

1/4 lb beef patty= 1.00 now

You retain profitability by making up the difference by reducing costs somewere.

hrs worked are down, and corperate wants them lower every month.

you have to cut somewere, or raise prices very near to a point where the customer is unwilling to pay.

[ltc8k6]

WC surely buys beef in a different manner than we do, though. For one thing, they almost certainly sign long term contracts with a beef supplier.