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Updated: 5:51 PM Sep 30, 2008
Fast Food Feeling the Pinch
Consumers are not the only ones feeling the pinch. The sluggish economy is taking its toll on businesses, including fast food restaurants. Posted: 4:20 PM Sep 30, 2008Reporter: Matt Barbour Email Address: matt.barbour@wymtnews.com |
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Consumers are not the only ones feeling the pinch. The sluggish economy is taking its toll on businesses, including fast food restaurants.
Being in the fast food business right now does not necessarily mean fast cash.
“Our bottom line's definitely not as good as it was, because we're having to pay more for the...everything's costing more,” says ‘Cat’ Sizemore.
Sizemore owns the Lee's Famous Recipe Chicken on East Main Street in Hazard. He has been in the restaurant business since 1968 and says with the rising cost of food and fuel, his business is taking a hit.
“Our chicken has gone up, the flour we fry our chicken in has gone up, the oil that we fry our chicken in has gone up,” says Cynthia Miller.
Miller is a shift manager at the restaurant and says they have raised prices to make up for the difference.
“No matter what restaurant you go to you're paying more, usually you can spend five dollars to get lunch, now you're looking at seven or eight,” she says.
But customers say they are willing to dish out the extra few dollars.
“I think everybody understands, you know. But is it going to get worse before it gets better? I think so,” says customer Eddie Combs.
Until then he says he will continue to indulge his fast food fix.
Sizemore says his restaurant could increase prices even more, but says he does not want to lose any customers.
Latest Comments
Steve, great comment! It could not have been said no better. Good post.
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Good! Maybe now some of the obese, overweight, fat a** Kentuckians can start losing some weight and quit being a burden on the healthcare system.
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There is an interesting line in this article: “No matter what restaurant you go to you're paying more, usually you can spend five dollars to get lunch, now you're looking at seven or eight,” she says. This is the thinking that got us in this mess to begin with. Lets assume last week at 5.00 you make money on a meal. Since prices have risen, now you the customer pay an extra 3.00 more for that same meal. That means cost must have risen 3.00 per meal. So if customers have absorbed that increase of the chicken, flour and oil why would the profit of the restaurant decrease? The customer absorbed the increase. The real reason would most likely be that customers who used to eat there maybe everyday now eat there only one or two times a week. Belts are tightening and that may be a good thing. The less we buy for a while maybe oil companies and everyone else in business would remember things like customer loyalty and customer service.
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