Price of food wholesale has really gone up and there is no way restaurants can pass the costs on to their customers. Restaurants are going to get squeezed.
Most larger restaurant chains are under food contracts, and wholesalers have to sell them products at the costs in the contracts. Wholesalers are ones who are getting squeezed. Food places that are not under these “contracts” will also suffer.
Many of those contracts ended Friday night. Restaurants aren’t going to like the costs of meat, corn, etc in 2011.
There is only so much land, and only so much food can be produced. More and more people in the world creates more demand on food, utilities, etc. which drive up prices. Now, you know what stocks to buy.
Here is why food prices are going up this year and profit margins those selling them will be squeezed if they can’t pass the increase to you.
In our town in 2010 I have to use both hands to count on how many of the LARGE restaurants have closed up shop…Black angus, Hungry Hunter just to name a few…
We’re in the very best of hands.
Can anyone say ‘ethanol’?
Bingo!
We are burning corn in our cars (thanks to government subsidies), which drives up the cost of corn which is in a large % of our food (including livestock feed). Yet most agree, that the true cost of growing corn for ethanol is higher than what it would cost to produce straight gasoline.
I agree with JF, we are in good hands…community organizers are subject matters experts when it comes to economics.
In most cities, there is ethanol in our gas. In one city south of me, you can buy 100% gasoline. It is about 10 cents per gallon higher, but your mileage is 2 to 6 more miles per gallon.
http://www.kansascity.com/2010/12/20/2533808/industry-coalition-sues-epa-over.html
Engine manufacturers are suing EPA to get the standards relaxed due to possible engine failures in older vehicles. I believe it actually costs more to manufacture a gallon of ethanol than gasoline. I know it is more environmentally friendly, but cars use more gas when ethanol is added. (When you burn more fuel, do you actually add to the pollution?)
http://www.nbcactionnews.com/dpp/money/gardner-man-offers-ethanol-free-gas
It is amazing that private people that are not involved with the political processes and do not vote on laws, are actually the ones running governments and making lawmakers vote for what these “private people” want.
The cost of good food - fruits, vegetables, grass fed beef, eggs from free range chickens, free range poultry [the food on the perimeter of your supermarket layout] - is always going to be higher than the cost of crappy food - the stuff advertised heavily on television and, in general, anything that your grandmother would not recognize as food [the food on the interior of your supermarket].
I’ll never forget my Irish-immigrant mother, who seldom watched television, shaking her head and remarking after seeing a commercial for a product called Sizzlean [sp?], “These Yanks will eat anything!”
Not this Yank. Thanks, Mom.
Sizzlean
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Sizzlean is a cured meat product manufactured throughout the 1970s and 1980s as a purportedly healthier alternative to bacon. It was originally produced by Swift & Co, and later by ConAgra Foods. While it is no longer widely available, at least one wholesale establishment still sells it.[1]](http://www.nachi.org/forum/#cite_note-0)
Sizzlean was the subject of a memorable series of commercials featuring the tagline 'Move over, bacon, there’s something leaner!".
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