Less is still more for US restaurant chains
McDonald's, Taco Bell, Chipotle are hesitant to raise menu prices despite the expected increase in commodity costs.
To take on McDonald's, Taco Bell is currently testing a new $1 Cravings menu, which includes items such as spicy chicken mini quesadilla, spicy cheese roll-up and a smaller version of its beefy cheesy burrito. The restaurant chain will soon start marketing its Happier Hour menu as well.
Meanwhile, the restaurant chains that aren't rolling out cheaper menus are reluctant to increase prices. Take the case of Chipotle Mexican Grill (CMG). Its same-store sales dwindled in the last couple of quarters partly because of increased competition from the lower priced Cantina menu (offered by Taco Bell). The company admitted earlier that it might face commodity cost pressures in the fourth quarter of 2012 and early 2013 but will be hesitant -- and certainly not the first one in the industry -- to raise prices. It would rather play a waiting game and if its competitors were to raise prices, then it may follow suit.
I don't condone it,,,,,But Europeans, and some Canadians have eaten horse meat for generations.
And other Countries disdain it...We are one of them.
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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