TL;DR
Restaurants are adjusting operations as food costs rise, with some franchises raising prices to maintain profitability. Famous Toastery CEO Robert Maynard says they will have to raise prices due to rising food costs.
According to the U.S. Department of Agriculture, restaurants' consumer price index increased by 7.7 percent from June 2021 to 2022. Due to rising food prices, restaurants need to raise menu prices.
“You can’t double your menu, so it’s become this situation where you want to be fair as possible to the people who’re buying from you, and at the same time, you have to be able to make money while doing it,” said Robert Maynard, CEO of Famous Toastery. “We’ve really avoided the big price hikes up until now, but we’re going to have no choice but to raise prices.”
Despite these issues that all restaurants are currently facing, Maynard remains confident in the industry, believing there are times of ups and downs in every business.
In this story
This story was originally published in 1851 Franchise on October 10, 2022. Burnaze summarizes and links to the original reporting.
Read the full story at 1851 FranchiseLiked this? Get the week's franchise news, explained
- Sunday 8 AM ET weekly + a monthly deep dive
- Sections picked for the industries you follow
- Every claim linked to its source. Free.