Ed Rensi states, “Portion sizes shrink, prices are going up.”
Ed Rensi, former CEO of McDonald’s USA, argued that inflation is driving all restaurants in America “absolutely insane” and that prices have risen “substantially”.
“Portions sizes are shrinking. The prices are rising. It’s crazy what’s happening to the restaurant industry,” Rensi said Friday in ” Cavuto Coast to Coast“.
Rensi stated that it was also true for every other small business. “They all suffer terribly from this federal inflation.”
McDonald’s claims that inflationary pressures will persist in 2022, after sales and profits fell short of expectations.
The U.S. Golden Arches Burger chain reported that its same-store sales, or restaurants that have been open for at least one year, increased 7.5% between October and December . McDonald’s reported that same-store sales reached 13.8% for the entire year. This was “the highest U.S. annual comparable sale ever reported”, in its January earnings release.
Franchisees own 90 percent of these businesses. Rensi said that franchisees are very close to customers and understand local costs.
“McDonald’s has recommended…somewhere around 6, 6.5 percent increase next year. It is true that every franchisee has the power to set their own prices, based on community needs.
Former McDonald’s CEO stated that inflation was not the only problem. He also mentioned the trucker’s shortage which is affecting the restaurant industry.
He said, “The greatest single problem we have is the…truckers shortage” and disruption to imports into this country. “This truckers’ problem is huge and has a significant impact.”
Businesses already facing increased costs and labor shortages are still being hit hard by mandated coronavirus vaccines. Businesses already facing difficulties due to the ongoing pandemic are being put under more pressure by the new omicron version.
Rensi concluded, “If you look at the jobs reports, if there is any belief in our numbers, and frankly…It states that we’re recovering form this COVID…Let’s lighten up, let’s let our bodies handle…