Went to Five Guys and guess what I paid (inflation)

[Anonymous]

Yeah, my two kids and I grabbed Wendy's over the weekend. Three #1 single patty meals size small came to $37!!! Outrageous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Stop eating at Five Guys! These places are sitting on a mountain of debt from the pandemic. They have to raise prices. Prices will not go down as long as people keep paying. Eventually, the places with too much debt will go out of business and new franchises/restaurants without debt will open. The new ones will be able to lower prices and attract customers away from the higher priced places.

Every restaurant from casual to Michelin star is sitting on a mountain of debt thanks to the pandemic.

You want every restaurant that employs 15 million individuals in the U.S. to go out of business all at once?

Do you realize the ramifications that has on the economy, on retail, on communities, on the workforce?

Do you have any idea how much money it takes in capital to start up new restaurants? How much cash on hand you have to have to even get a license or a franchise contract?

You're a fool.

I also think they are totally clueless about what is driving inflation in restaurants.

[Anonymous]

Anonymous wrote:Meat is still way too cheap, it should have a price corresponding to the value of the killed animal.

You're not an economist, are you?

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, don't listen to the idiots in this thread. They're missing the entire point - inflation IS here, it IS real, and it IS affecting consumers.. The fact that they're trying to lambast you for not making at home is a stupid whataboutism/meant to deflect. Your experience is part of a larger overall economy. If burgers get so expensive that people stop buying and make at home, then burger chains go out of business and layoff people. Those employees lose income and spend less money on clothes, iphones, etc. It is just a chain reaction because it is part of a broader overall economy, and consumer spending makes up the lion's share. If consumer spending decreases because everything is too expensive, then GDP contracts or slows, and we are stuck with a recession or stagflation.

It’s not just inflation. Food prices went up A LOT during the pandemic. Supply chain, staffing, etc.

Those are still inflation, just cost-push inflation, not demand-pull inflation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Stop eating at Five Guys! These places are sitting on a mountain of debt from the pandemic. They have to raise prices. Prices will not go down as long as people keep paying. Eventually, the places with too much debt will go out of business and new franchises/restaurants without debt will open. The new ones will be able to lower prices and attract customers away from the higher priced places.

Every restaurant from casual to Michelin star is sitting on a mountain of debt thanks to the pandemic.

You want every restaurant that employs 15 million individuals in the U.S. to go out of business all at once?

Do you realize the ramifications that has on the economy, on retail, on communities, on the workforce?

Do you have any idea how much money it takes in capital to start up new restaurants? How much cash on hand you have to have to even get a license or a franchise contract?

You're a fool.

I know the owner of 2 5 guys franchises. he isnt hurting and never did. he's ridiculously wealthy

[Anonymous]

Anonymous wrote:Hello! Would love to hear from an actual finance DCUMer. Is there concern the restaurant industry is headed for a collapse? Did restaurants bounce back from covid by pivoting to all the takeout (after being clobbered when covid started), but now food price inflation plus staffing issues mean another crisis is ahead? I’m genuinely curious.
- DCUMer without a dog in this fight

Not a finance DCUMer but my husband's family owns delis in the DC area for 60 years. Thankfully, his was a lot of take out before the pandemic so once they could re-open, they've been busy. He says staffing was a problem before the pandemic and just more difficult now. He shops mostly with Sysco and Restaurant Depot and says the most difficult thing is the pace of price increases and wild swings - a box of tomatoes that cost $28 a few months ago and stayed in the $24 = $32 range might be $72 this week. Huge spikes have been happening with tomatoes, eggs and some meats. Also says there are times when you just can't get something like weeks without platter to-go containers. All of this makes it harder to plan for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Stop eating at Five Guys! These places are sitting on a mountain of debt from the pandemic. They have to raise prices. Prices will not go down as long as people keep paying. Eventually, the places with too much debt will go out of business and new franchises/restaurants without debt will open. The new ones will be able to lower prices and attract customers away from the higher priced places.

Every restaurant from casual to Michelin star is sitting on a mountain of debt thanks to the pandemic.

You want every restaurant that employs 15 million individuals in the U.S. to go out of business all at once?

Do you realize the ramifications that has on the economy, on retail, on communities, on the workforce?

Do you have any idea how much money it takes in capital to start up new restaurants? How much cash on hand you have to have to even get a license or a franchise contract?

You're a fool.

I know the owner of 2 5 guys franchises. he isnt hurting and never did. he's ridiculously wealthy

So then PPs notation that restaurants are price gouging because *checks notes* they are under a mountain of debt is erroneous then?

[Anonymous]

Anonymous wrote:OP, don't listen to the idiots in this thread. They're missing the entire point - inflation IS here, it IS real, and it IS affecting consumers.. The fact that they're trying to lambast you for not making at home is a stupid whataboutism/meant to deflect. Your experience is part of a larger overall economy. If burgers get so expensive that people stop buying and make at home, then burger chains go out of business and layoff people. Those employees lose income and spend less money on clothes, iphones, etc. It is just a chain reaction because it is part of a broader overall economy, and consumer spending makes up the lion's share. If consumer spending decreases because everything is too expensive, then GDP contracts or slows, and we are stuck with a recession or stagflation.

No there is a huge gap between demand and supply. Demand needs to soften as supply gets back to normal.

[Anonymous]

Anonymous wrote:Yeah, my two kids and I grabbed Wendy's over the weekend. Three #1 single patty meals size small came to $37!!! Outrageous.

Dave's Single combo is $8.29.

Were you at gunpoint? That was not a Wendy's, ma'am.

[Anonymous]

Anonymous wrote:Yeah, my two kids and I grabbed Wendy's over the weekend. Three #1 single patty meals size small came to $37!!! Outrageous.

I call BS. I ate at the Wendys on Columbia Pike yestyerday and got a kids cheeseburger meal with fries and coke. Total was $4.31. So even if I ate 2 orders it's still under $9.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Stop eating at Five Guys! These places are sitting on a mountain of debt from the pandemic. They have to raise prices. Prices will not go down as long as people keep paying. Eventually, the places with too much debt will go out of business and new franchises/restaurants without debt will open. The new ones will be able to lower prices and attract customers away from the higher priced places.

Every restaurant from casual to Michelin star is sitting on a mountain of debt thanks to the pandemic.

You want every restaurant that employs 15 million individuals in the U.S. to go out of business all at once?

Do you realize the ramifications that has on the economy, on retail, on communities, on the workforce?

Do you have any idea how much money it takes in capital to start up new restaurants? How much cash on hand you have to have to even get a license or a franchise contract?

You're a fool.

I know the owner of 2 5 guys franchises. he isnt hurting and never did. he's ridiculously wealthy

Not surprising.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yeah, my two kids and I grabbed Wendy's over the weekend. Three #1 single patty meals size small came to $37!!! Outrageous.

Dave's Single combo is $8.29.

Were you at gunpoint? That was not a Wendy's, ma'am.

Lol, I see what you did there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:One issue with Five Guys is they only use fresh and not frozen beef. This means their supply chain is more costly, since the beef needs to be delivered and used within a short time period. McDonalds uses frozen (except for the quarter pounder burger) so they have lower costs in their supply chain.

OT but is this true? If so I’ll get a QPC next time instead of Big Mac

Yes, FG uses 1 live cow per day.

Jeez, they don’t even kill it first? Sad

[Anonymous]

Anonymous wrote:5 guys has gotten expensive. I paid 6.50 for a jar of Bon Maman raspberry jam at WF tonight.

I saw Bon Maman at Giant today for $3.99, special offer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, don't listen to the idiots in this thread. They're missing the entire point - inflation IS here, it IS real, and it IS affecting consumers.. The fact that they're trying to lambast you for not making at home is a stupid whataboutism/meant to deflect. Your experience is part of a larger overall economy. If burgers get so expensive that people stop buying and make at home, then burger chains go out of business and layoff people. Those employees lose income and spend less money on clothes, iphones, etc. It is just a chain reaction because it is part of a broader overall economy, and consumer spending makes up the lion's share. If consumer spending decreases because everything is too expensive, then GDP contracts or slows, and we are stuck with a recession or stagflation.

No there is a huge gap between demand and supply. Demand needs to soften as supply gets back to normal.

Wow, you must be a certified genius. Thanks captain obvious.

The reason there is such a huge gap is because the govt dumped trillions in stimulus and the fed printed tons of money as well as cut interest rates to zero. It super charged demand during a pandemic. We are now dealing with the consequences of a diabetic sugar rush.