When prices collapse in the financial and commodity markets like they have in the past three months, it is called “repricing of assets.” Friday’s retail sales figures were not bad they were horrific. The price of oil has dropped 60% from its peak five months ago. Other commodity prices including dairy, wheat and corn have also trended lower. The conditions are changing so fast that business is unable to keep up. Menu prices tend to be sticky, that is when you set them they tend to remain at that price for a while.
Have you checked you vendor invoices recently? Are you still being charged a fuel surcharge? What has happened to flour and dairy prices? Look at your lease, if traffic counts have dropped off the end of the table, renegotiate your lease. The work that you had gotten a quote on five months ago, get another quote, I am guessing the price has been ratcheted downward.
There has not been such a huge “repricing of assets” in eighty years. No one seems to know how to respond, leadership is sorely lacking. There is a massive crisis.
There is also the opportunity of a lifetime!
