OPERATORS TO NEW YORK: DON'T BURST OUR
Yes, the recession has brought most of the U.S. economy to its
knees. But the pricing bubble for soft drinks at the restaurant level
lives on, helping many operators keep afloat. Paradoxically, even though
value-seeking customers aggressively demand bargains when they make
their food choices, they remain willing to bear whatever price a
restaurant charges for soft drinks. That’s why, percentage-wise, soft
drinks are the highest-margin items on most foodservice menus today. But
beware: New York officials are about to show the rest of the country how
to get a big share of restaurant beverage dollars out of the hands of
operators and into the government’s treasury.
It’s hard to decide which is the better deal for fans of Chipotle
Mexican Grill right now. Its food—the company is testing a “Low
Roller” menu with inexpensive options starting as low as $2.25? Or its
stock—the price spread between the company’s
identical-in-economic-value-but-different-in-voting-rights shares (Class
A shares were trading around $83 at press time, Class B shares about
$66) is approaching historic proportions. Both look like bargains to us.
Meet celebrated chef/restaurateur Charlie Palmer at the 2009 Concepts of
Tomorrow Conference. Click here for more details.
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New England Rachel
Midwest & Ohio Sam Wilson
West Lisa Snider
Southeast Doug Mael
Penton Media, Inc.
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