by Sanjay S » Fri Nov 09, 2007 1:14 pm
Seems like several restaurants are raising prices - Subway and Wendy's increased their prices earlier this year and I've heard that others are planning to. I'm sure the high oil prices are causing food costs to go up and the restaurants are passing on those costs to the customers in order to maintain margins. It seems that the independents and small chains would be affected the most since they don't have the same pull with their suppliers and can't lock in future prices, but at some point everyone's going to be paying the higher prices. Either Wendy's, Subway, and Quizno's management dropped the ball on futures or their raising prices in anticipation of higher food costs (kind of like our local gas stations taking advantage of every excuse to quickly raise prices). Unfortunately, unlike gas stations, I doubt the restaurants will ever lower prices if their food costs decrease again in the future.