Most resteraunt chains are set up with the following equation:
30% labor cost
30% food cost
30% utility and building cost
= 10% profit
just raising the labor cost will make these businesses unprofitable
food cost is not going to come down, no matter how draconian the cuts to quality or portion size are.
cost of maintainence, utilities and taxes are only going up.
even well run resteraunts are “feeling the bite”( I crack myself up)
I have 28 years of resteraunt experience. Both as Labor and management.
[30% labor cost
30% food cost
30% utility and building cost
= 10% profit]
That sounds about right to me, based on what little experience I have with restaurants.
OTOH, going to KFC, shoot even Popeye’s is way, way up.
KFC, you need to take out a loan before you go there. They had some $5/boxes about 10 years ago (when work was plentiful) - those were great. But I haven’t had their regular bucket “deals” for about 7-10 years now. I gave up.
And Church’s Chicken? Last two sandwiches I got there (one visit) I returned both for a refund. Probably almost never go there again.
BS. Meat/buns go up then the price on the menu goes up accordingly. Somehow the restaurant stays in business. But when wages go up then why don't the prices just go up accordingly? Wages are political, meat costs are not.