February 14, 2008
– Comments (3)
Helicopter Ben and his gaggle of short-sighted market-savers tell us that inflation is just fine.
Pay no attention to stuff like this (from a recent restaurant CC)
Now, a few trends and details on the first quarter of 2008. To date in the first quarter, same store sales are at 4.1% for company-owned restaurants and 1.3% for franchise locations. The potential benefit in the quarter for many price increases is estimated at 3% for company-owned restaurant sales, which includes a first-quarter 2007 increase of 2 to 3% that rolls off at the end of February, and a new 3 to 4% menu price increase that will take effect when we roll the new menus at the end of the month. We're pleased with the same-sale store trends given the prior-year's first quarter same-store sales were 8.7% for company-owned and 3.3% for franchise locations.
hmm, caps is freaking out on me. It ate the rest of that quotation...
Huh? Unless the point is that this statement is horribly obfuscated, I don't get it. Could you break it down for me? Are these guys saying that they already have 3% increases for the quarter, and they're only going to get 3% increases, including 3% price increases? I'm confused.
It's obscure but basically the restaurant will raise price 5-8%. Restaurants usually don't raise their prices much faster than inflation, so either these guys are nutjob or Bernie is a nutjob. Or maybe both.