Home   Restaurant   Free Restaurant Business Plan   4.27 Annual Change in Consumer Prices Analysis

4.27 Annual Change in Consumer Prices Analysis

In this section we pick up where we left off on in our analysis for consumer prices. Here we look at the year on year change in the consumer price indexfor all items in the New York metropolitan area versus the change in the consumer price in the for food far from home. When we examine this data for thepast 12 years beginning in 1998 we find that the change for both these indices are reasonably corelated, in that they both have been increasing albeitat slightly different paces over the years. During some years like in 1998 the annual change in the CPI for all items was 1.6% and for the CPI for food away from home for the New York metropolitan area was 2.7%, but on the whole the average change over the years in both these indices has beenthe same - 3%.

It is important to understand that over the long run the consumer prices for any one component of the consumer price index will most probably followthe index itself, but in any one given year there may be substantial differences in the change of these prices. We at A Taste for Tuscany always look atthe consumer price index for all items to understand what kind of pressure our consumers are facing but also look at the more specific and pertinentconsumer price index for food away from home to determine our own pricing strategy. If we find that our competitors are raising prices, we may chooseto keep our prices the same or often specials and discounts in different packaging to keep the volume of traffic flowing while maintaining lower margins especially in sluggish economic times.

Quick Links:

  1. Go to the Corresponding Template section for this industry.
  2. Go to the Corresponding Questionnaire section for this industry.

Small Business Owner Resource Center


Articles on the Small Business Financing Sources, the Small Business Loan Basics, small business loans Checklist and SBA Loans are incredible sources of knowledge for the small business owner.



Credit Report and Credit Score Analysis, how to Read a Personal Credit Report and all about Business Credit cover the intricacies of credit and are required reading for everybody.



The Foundation Grant Directory is a free listing of sources for grants by state. Why not look if there is some free money out there for your business. Hey - you never know!



The Business Loan Application covers every item you will need in your loan package and tells you how to get approved for business loans.



Fire your loan broker and use our Free Business Loans Bank / Lender Directory to find every bank in the country lending to small businesses.



If you are looking to start a business - look no further.  Check out the Free Incorporation Guide discussion and the State Incorporation Resource Directory.

Rate this page
Your feedback is important to us | Please rate this page
1 2 3 4 5