By CABBYRyan A., Ruth B., Sharon B., Chris C.

The ProblemRestaurants are seeing

a drop in profits.

Restaurants are closing

Cutback of free extras

Cutback of portions

Higher food prices

StatisticsMcDonalds- 0.8% loss

in MarchFirst loss in five yearsRyan’s Steakhouse-

bankruptcyRuby Tuesday’sShares at $7.35

compared to $27.59 a year ago

Ponderosa- 4.5% loss

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 3rd 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.

Ways to Save“Less Sauce” on main entrees and sauces by

requestRuby Tuesday’s research

Switch suppliers Saved $800,000 on broccoli and $500,000 on

mashed potatoesNew frying system that reduces cooking oil

consumptionVillage Inn and Baker’s Square

Smaller “taster slices”Reduced portions of hash browns and fries

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