Some big chains like Dunkin’ Donuts and McDonald’s have been able to hold down prices because they buy in bulk and their size gives them purchasing power.
And in some cases, franchisees absorb the costs.
Clayton Turnbull, who owns 18 Dunkin’ Donuts in Greater Boston, has not raised his prices since the beginning of the year. “We’ve taken a hit and hope we can outrun the trend,’’ he said. His strategy is to lure customers in with other products to offset the increase
Adding to an already tough economy, commodity prices are expected to eat into profits for Dunkin’ Donuts franchise owners in 2011. According to the National DCP, commodity prices are especially turbulent, owing not only to bad weather in coffee producing countries; but also to growing speculation of commodities among hedge fund managers and other investors. DDIFO Members Read More…
Misty Harris in Canwest News Service writes that Canadians with a sweet tooth may soon find cavities in their wallets as sugar prices soar to their highest level in three decades. Production shortages have seen the cost of sugar nearly triple in the last year, flirting with 30 cents U.S. per pound in comparison to the 11 cents at which it formerly hovered. Analysts predict things will get worse before they get better, with potential price implications for everything from cupcakes to double-doubles.
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