Below I'm risking a socioeconomic parenthesis:
Some experts would know that the US has seen a steady decline in its cattle herd and shifts in protein consumption (there's been even more downtrading this year), although meat exports have been strong. The problem that we see with weak consumption is partly down to the destruction of the middle class after the 2008 crisis. Increasingly adults have to work at fast-food joints to make ends meet, and the rise of QSR industry has reflected the decline of higher paid sectors...The Bloomberg paper below is a good illustration of the wage gap and trends in the US society, which all suggest a continuation of demand destruction in food and widening of the Gini index (inequality index). We wouldn't say that the rise in QSR is a cause, rather an effect of gradual dislocation of society. This said, patties served in QSR restaurants are a far cry from premium beef cuts or poultry breast sold in supermarkets or butchers...
McDonald's grows very well when there's a recession, and grows well when there isn't one. The problem is that rapid job creation by the QSR sector does not create a consumer that will support the growth of F&B industry.
http://www.bloomberg.com/news/2012-12-12/mcdonald-s-8-25-man-and-8-75-million-ceo-shows-pay-gap.html
No comments:
Post a Comment