What Rising Gas Prices Mean For Restaurants

""According to Nation’s Restaurant News, “With gas prices on the rise, many restaurant operators are bracing for a replay of 2008, when sustained high fuel prices cut into consumers’ discretionary spending.”

“The national average price for gas rose to $3.471 a gallon Friday, according to AAA, and a gallon of gas hit $4 in Chicago and California this week. Uncertainty over the world’s oil supply, made worst by ongoing conflict in Libya and the Middle East, probably will drive prices higher in the near term, said David Portalatin, motor fuels analyst with The NPD Group. However, he said, the national hand wringing at the prospect of $5-per-gallon gasoline is overblown, as consumers respond to high prices by moderating their driving habits.”

“Until that balance is achieved, restaurants that target on-the-go consumers like quick-service chains and eateries located near shopping centers will feel the pinch acutely, Portalatin said. He spoke with Nation’s Restaurant News on Friday about how consumers react when they start feeling pain at the pump.”

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