Rising Costs Impact Fast Casual Chains

LOUISVILLE, Ky.—Rising costs have impacted nearly all fast casual restaurants, according to the 2009 Fast Casual State of the Industry Report. The survey found that “of the operators surveyed, 66.3 % said rising food costs were their main area of concern in 2008.” To cope with rising costs, chains like Panera have dropped menu items, while others have lock into fixed food costs. The survey also revealed that 88 % of operators said they raise prices based on commodity costs.