Description: It’s probably no surprise that with inflation cranking up the food prices in the grocery stores that it would also cost us more to eat out. According to Restaurants Canada, we will see the cost of dining out increasing by 7.8 per cent by the time we say “goodbye” to 2022. Rising costs for food and fuel, as well as a shortage of labour, are eating away at restaurateurs’ bottom line.
Date: September 15, 2022
1) Have you noticed the cost of eating out rising in your university town?
2) Have you and your friends changed your habits in eating out to deal with these costs?
3) Page 5-24 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the use of the gross margin in financial ratio analysis. What do you think would be a target gross margin for a sit-down restaurant?