Where menu prices are really determined
This morning I read an article regarding the rising costs of food and how restaurants will respond. In the article former server Charles Ferruzza finds a pair of local restaurant owners who say they will refuse to raise prices to compensate for the increase in costs. The owners discuss absorbing the costs themselves or reducing portion sizes to keep prices constant. While I am certain no owner was eager to have an article written about their pending price hike, there is another side to this story. The difference in priorities between an independent owner and corporate shareholders is something that explains a great deal about the restaurant industry.
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