Meat Prices Putting a Squeeze on Franchises

Replace lions, tigers and bears with beef, poultry and pork in that little ditty from “The Wizard of Oz” and you’ll have a general idea of the trepidation franchises are feeling right now.

Tom Kaiser over at Franchise Times recently spotlighted how a combination of factors, including a drought in California and a bird-flu outbreak in Minnesota, has led to skyrocketing prices for chicken and beef.

Kaiser cited the Minneapolis-St. Paul Business Journal in reporting that Buffalo Wild Wings’ stock decreased 10 percent following news the company had experienced a 41 percent year-over-year rise in poultry prices. Meanwhile, data from Missouri Farmer Today showed per-pound beef prices had broken the latest record set in February, with ground beef now costing $4.20 a pound.

Fortunately, while franchise owners would be forgiven for expecting pork to complete the bad news trifecta, pigs are giving them a reason to smile besides the smell of bacon. Kaiser reported pork prices fell steadily through the first quarter of 2015.

Read the full story here.