Rising meat prices may alter menus
October 14, 2008
According to the Associated Press, CKE Restaurants Inc., which operates Carl's Jr. and Hardee's restaurants, stopped offering its Double Cheeseburgers in its 2 for $3 promotion to avoid selling beef for such alow price. It replaced the cheeseburgers with Jumbo Chili Dogs and Hot Ham 'N' Cheese Sandwiches. McDonald's is also considering changes to its Dollar Menu, either by raising prices or changing the food options.
The restaurants are preparing for large increases in food costs, the AP says. So far this year, wholesale food prices have jumped 8.7 percent, adding on to a 7.6 increase in 2007. Menu prices have increased by 4.2 percent, which has not been enough to offset the rising costs.
"This is the most challenging environment for restaurant operators regarding food price inflation on the wholesale level for almost 30 years," said Hudson Riehle, senior vice president of research for the National Restaurant Association.