Restaurants Look For Ways To Cut Costs

WSJ:

Franchise restaurants, hit by higher commodities prices and a cutback in consumer spending, are aggressively searching for ways to slash costs.
cutting-costs

Many of these businesses can’t pass on the higher costs to customers without losing even more business. So, they’re trying to find alternative ways to save — including changing vendors and packaging, altering delivery schedules, cutting serving portions and even prolonging the life of fryer oil.

Restaurants feel they have no choice, as some chains are posting some of their worst monthly sales declines. Ruth’s Hospitality Group Inc.’s same-store sales at its company-owned Ruth’s Chris Steak House locations fell 15% in October. Ruby Tuesday Inc. experienced a 10.8% drop in same-store sales; California Pizza Kitchen Inc. had a decline of 7.3%; and Red Robin Gourmet Burger Inc. posted an 8% drop. Read full article.

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