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Inside This Issue
Menu Features
11-23 Human Resources Issue 11 Defensible Employment Interviews
Everything You Need to Know When Strengthening Your Operation’s Workforce
11-23
Rising Fuel Prices
As you know, foodservice operators have been challenged over the past three years to maintain viable businesses in the midst of the worst economic slump since the Great Depression. The majority of you have managed to maximize revenue opportunities and minimize every expense in an effort to keep your doors open.
Now that the economy is beginning to improve – albeit modestly – operators are faced with a new set of challenges to their proftability: rising fuel prices. As the price of gas and diesel moves past the $4 a gallon barrier, consumers and suppliers alike are changing behaviors that will further challenge our industry.
As you will recall from the last time fuel prices reached this level in 2008, the public will likely react by making fewer trips to dine out, thus leading to reduced traffic for operators of all types. The second part of this challenge is the decision by many suppliers to pass along fuel surcharges to operators like you. These expenses can be substantial by adding hundreds of dollars in new charges to already escalating food and commodity prices.
Unfortunately, given the state of the economy, it is nearly impossible to pass these costs along to your guests through increased menu prices without the risk of losing business.
Although we can’t solve the energy issue in the short term, we recognize the challenges of these economic realities. Both the Ohio Restaurant Association and the National Restaurant Association will continue to work with other state restaurant associations to encourage responsible energy policies that lead to less dependence on foreign oil and the cessation of diverting food for fuel,
such as corn for ethanol. Elected officials must be made to understand that there are a multitude of unintended and, often, costly consequences that come with policy decisions such as these.
A Path to Prosperity
As the state’s population remains stagnant, weekly I read that the number of restaurant seats continues to expand as both independent operators and franchisees open new stores. Without a strong economy to attract new businesses and create jobs, there is little hope for substantial population growth and the subsequent disposable income that will fll both new and existing seats.
We know that under the past two administrations, Ohio has experienced a loss of more than 500,000 jobs. With this in mind, the ORA endorsed the Kasich administration’s JobsOhio legislation, an initiative we hope will help to jumpstart Ohio’s economy.
We support the governor’s efforts to improve Ohio’s business climate and create an environment that will grow our economy. If successful, Ohio will be viewed as a great location to expand existing businesses and attract new ones. Then, and only then, will operators be able to grow their businesses without relying solely on taking market share from other operators.
by Geoff Hetrick President & CEO, Ohio Restaurant Association
Protecting Your Bottom Line
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