The Margin Squeeze gives a good indication of how gross profits are faring. And for most of the past twelve months they’ve been faring badly. Operators’ ability to offset cost of goods inflation by raising menu prices rises is limited by their willingness to contemplate any price increase, given that consumers have less money in their pockets. Plus, they face further rises in the price of fuel because of dwindling government support.
When will things start to improve?
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