Consumers are known to begin cutting back on big purchases like dining at high end restaurants or on vacations when the economy is sluggish and concern for job certainty is high. But are people now starting to cut back on dining at fast food establishments? IFA chairman and Arby’s Chairman of the Board Jon Luther discusses the impact the uncertainty is having on fast food restaurants and the franchise industry during a special segment with FOX News’ Neil Cavuto.
Being a part of Arby’s and Dunkin’ Brands, Luther explains that, “we are at the crossroads of consumers and franchisees and we have to weigh their view points and understand their behavior. Early this summer we saw a real slow down overall in the industry, whether it be the franchise or the general restaurant industry,” states Luther. “People are retrenching and eating out less and generally cutting back on over all purchases and food has become one of them. “
In the franchise world, there are franchisees who are small business owners being affected by consumer slowdown and the uncertainty. The franchise industry has direct and indirect jobs of 18 million jobs in this country and over 825,000 establishments that are franchised. “These small business owners can make a huge contribution to our economy and until there are jobs and certainty in the consumer and business environment we are going to be seeing this pattern for a while,” explains Luther.
However, the consumer still has to eat and even with the cut backs Luther assures that “everybody is working hard every day to make sure we provide value to the customers.”
Click here to view the full interview on FOX News.