Consumer inflation exceeded the Federal Reserve's two percent target for the first time in almost five years in February, according to a recent article in the Wall Street Journal. However, that inflation has had an impact on businesses, including those within the franchise industry.
MOOYAH Burgers, Fries & Shakes is a rapidly growing better burger brand out of Texas and has had to contend with some of the pressures of inflation, on top of other shifts in the economy so far in 2017.
“Labor costs have increased 5% to 10%” partly due to higher minimum wages in several states, Michael Mabry, COO of MOOYAH Burgers, Fries & Shakes told the Wall Street Journal. “But you can’t raise menu prices by that amount in this environment.”
According to the WSJ, MOOYAH offset some of the higher staff and product costs within the competitive segment by lowering prices on a few of their lowest cost menu items - including small fries and drinks - as a way to attract more guests.
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