As fuel prices go up, folks have less spending money as their weekly budgets for fuel often double. Thus with less money to spend Fast Food Restaurants often are the first hit and they get hit badly. Does that mean we can expect the Fast Food wars to go nuts again? Does that mean you soon be able to say I just bought a Whopper for $.99 or Wendys Single for $1.00 or even a Big Mac for only a buck; could be and soon. Last time fuel prices went up drastically the prices of fast food came down, bad for profits of the franchisee, but great for the consumer if you have the stomach for fast food or really like the taste. Of course last time around beef prices were way down. Last time we had burger wars; Burger king for instance since its first US Store came ashore in Jacksonville Florida 40 years ago, price wars had always been a way to fight against the most powerful and ominous Ray Kroc Creation. Why were beef prices down last time around? Drought. You see so many cattle ranchers could not afford the water to keep the fields green for eating. So they had to take their livestock to slaughter earlier in the year, and since they all did it at the same time, the over supply caused a price slump. Mostly in the drought ridden mid west, this caused ripple across the world. Well we have drought issues now in Texas, Okalahoma and New Mexico now in 2006. Last time instead of Where is the beef you had plenty although if it happens again you may be asking where are the tomatoes. Thats right less tomatoes more beef. Tomatoes and lettuce onions all took a hit too, but they were under supplied since yields were low in so many places in the US. Anyway you can now get a double stack from Wendys or a Chicken sandwich or Big and Tasty for $.99 also. Yes the chicken sandwich is interesting but the same scenario happened to hogs and chicken. So if you go to an all you can eat rib place expect a little price break too. If you are from Australia do not expect a vegemite sandwich cheap though, why? Also the drought. Never the less all these fast food companies are going to be competing for your business, one dollar at a time, then hope to sucker you into a high profit fountain drink too. So I hope you will consider all this in 2006, because the Fast Food Price Wars are coming back soon. |
