1. By CABBY Ryan A., Ruth B., Sharon B., Chris C.

2. The Problem Restaurants are seeing a drop in profits. Restaurants are closing Cutback of free extras Cutback of portions Higher food prices

3. Statistics McDonalds- 0.8% loss in March First loss in five years Ryan’s Steakhouse- bankruptcy Ruby Tuesday’s Shares at $7.35 compared to $27.59 a year ago Ponderosa- 4.5% loss

4. Causes Rising Food Prices Added $9 million to Annual Food Costs Grain- $5 to $8 Egg prices tripled Rising Minimum Wage 12% increase by summer Nation’s 3 rd largest employer Casual Dining is the first inferior good to go. Woman in the work force leveling off. Quality of Prepared Food at grocery stores increase.

5. Ways to Save “Less Sauce” on main entrees and sauces by request Ruby Tuesday’s research Switch suppliers Saved $800,000 on broccoli and $500,000 on mashed potatoes New frying system that reduces cooking oil consumption Village Inn and Baker’s Square Smaller “taster slices” Reduced portions of hash browns and fries

6. What can you do? Restaurants are hoping tax rebate checks will boost sales.