Chains chew on changing food contracts

Chains chew on changing food contracts

Rising commodity prices and shortened purchasing contracts for restaurant staples like chicken and beef are adding another layer of volatility to an already complex operating environment.

Having faced escalated costs and weak consumer spending throughout 2008, operators looking to 2009 are feeling mounting uncertainty about how high commodity prices will rise and whether it makes sense to lock prices into contracts or gamble on the spot market.

Restaurant companies

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