Restaurants Exposed to Losing Market Share as Food Prices fall at Retail
SEAFOODNEWS.COM [Nation's Restaurant News] By Jonathan Maze - July 25, 2016
Tony Lutfi, a successful multi-concept franchisee based in California, once told me that whenever he raises prices, he sees a decline in traffic at his restaurants "every time.”
The restaurant industry appears to be witnessing this en masse. Same-store sales have been weak all year, while traffic has been declining, according to Black Box Intelligence and MillerPulse.
Take Dunkin’ Brands Group Inc. On Thursday, the operator of Dunkin’ Donuts reported 0.5-percent same-store sales growth. Average ticket rose 2.9 percent, thanks entirely to a 3-percent price increase.
Traffic fell 1.4 percent, which was predictable. “Franchisees perhaps sometimes go ahead of themselves into raising prices,” Dunkin' Brands CEO Nigel Travis said ...
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