The food industry (surprise surprise) is also being affected by the slowing of the US economy. In a discussion in class a few months ago, we talked about something similar. Whenever there is a slump in the economy the two extremes continue to do well - the very high end and the low to very low end. So - folks who have money to spend on ferraris continue to dine out at fancy restaurants, or people continue to save and eat there for very special occasions. Fast food chains like McDonald's who can offer burgers for less than a $1 actually see their sales go up.
What's the first thing that you do when you have less discretionary cash flow? Cut your spending, right? And what's the quickest way to do that? Bring lunch and eat in. Yep - that's right...no good for restaurants.
Restaurant profits may suffer despite stimulus - Food Inc.- msnbc.com
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