The restaurant industry in 2010 and the reality of inflation

When we read the Wall Street Journal, the New York Times, Economist, Bloomberg Business News, Business Week, Forbes, Investor Business Journal, Financial Times , and even the FED's Beige report with graphs, graphs and images that have deflation in the United States, not inflation. However, if the economy focuses on specific industries, then we can see that there is a small amount of inflation in many places – such as foodstuffs in grocery stores.

Even though Wal-Mart would revert prices, 2-liter glassware to $ .88, or corn for $ .25, for a dollar, such as Catsup, but that does not mean that there is no inflation in the food industry. In fact, we need to look and see higher world wheat prices that are used for many products and feed prices that increase meat prices. And talking about meat, this is where "rubber meets the road" for the restaurant industry.

As the economy decides to step back into a double steep recession, or not, many companies are not rehiring, but are only preparing for it. That is, they reduce their workforce and lower prices as a hedging strategy against further economic damage. The low-cost large-scale strategy is common in the recession, and this includes the restaurant industry. Thus, on the one hand, the restaurant sector will have to deal with dining with their guests in 2010, but food costs will increase because of inflation.

This is a Catch-22, and is not a good sign for those who are unemployed who can work in the restaurant sector or shareholder and quarterly profits are the largest chains of restaurants. And there are still moms and restaurants, big family restaurants that consume great food in the local area and in the community. Their costs are even higher than the big chains that can take advantage of purchasing power.

So when almost every day CNBC, MSNBC, Fox Business News, and other cable business news channels say that we experience deflation, it does not mean that we can automatically apply it to any industry. And as oil prices have returned, this greatly increases the price of food, as every food needs a tractor, needs to be marketed and delivered to restaurants. The restaurant industry is not out of the woods, even though many bigger chains now account for more profits, and so I hope to take this into account.

Source by sbobet

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