Italian Restaurant Business Plan - Market and Industry Analysis Page 7

WPI % change

The chart above compares the actual annual inflation numbers as reported by the wholesale price index and foods and feeds within it, clearly showing that foods and feeds inflation has always lagged the wholesale price index which has had wild swings probably due to the energy components of the index. The consumer price index will probably give us a better idea….

4.11 Industry Analysis: Consumer Price Index v/s foods far from home

When looking at the above chart which compares the consumer price index all items value versus the food far from home component of the index, we can see that while the CPI has fluctuated over the past few 10 years the index for foods far from home has remained fairly steady and smooth indicating a steady but controlled rise in the food far from home prices.

4.12 Industry Analysis: Full service restaurants labor cost analysis

Full service restaurants - labor costs analysis

Year	Unit Labor Costs Index	% Change in Unit Labor Costs	Labor Compensation Index	% Change in Labor Compensation Index

1987	65.70	-	50.61	-
1988	66.76	1.6%	54.39	7.5%
1989	69.95	4.8%	58.01	6.6%
1990	72.42	3.5%	61.38	5.8%
1991	75.87	4.8%	63.24	3.0%
1992	81.04	6.8%	68.08	7.7%
1993	83.30	2.8%	72.72	6.8%
1994	86.28	3.6%	78.71	8.2%
1995	97.34	12.8%	88.97	13.0%
1996	97.48	0.1%	91.39	2.7%
1997	100.00	2.6%	100.00	9.4%
1998	106.66	6.7%	108.83	8.8%
1999	112.14	5.1%	116.66	7.2%
2000	115.22	2.7%	124.79	7.0%
2001	118.02	2.4%	129.69	3.9%
2002	120.57	2.2%	136.02	4.9%
2003	122.69	1.8%	141.77	4.2%
2004	127.22	3.7%	151.00	6.5%
2005	131.67	3.5%	159.50	5.6%
2006	133.34	1.3%	170.73	7.0%

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Italian Restaurant Business Plan - Market and Industry Analysis Page 7

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