Published January 24, 2017

Higher gas prices are a big sales risk

Feeling thankful that gas prices are pretty low at the moment. Well don`t get to comfortable because these gas prices are expected to rise. With rising gas prices on the rise this could spell bad news for restaurant sales especially same-store sales. As more and more people look to get their food from the grocery stores as gas prices rise.

Key Takeaways:

  • Gas prices plunged late in 2014 and in 2015. Unsurprisingly, restaurant sales in early 2015 were spectacular.
  • Gas prices remain exceptionally low. Even if they increase 50 percent, they will still remain 25 percent below all-time highs.
  • Still, gas prices have increased for 14 days straight, and now average $2.21 per gallon, according to AAA. That’s about 20 cents per gallon more than a year ago, or a 10-percent increase.

“Gas prices are creeping back up as the price of oil rises. It’s more likely that gas prices will keep increasing than it is that they’ll fall again.”

http://www.nrn.com/consumer-trends/higher-gas-prices-are-big-sales-risk

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