Gas prices a risk for casual restaurants, Starbucks

LOS ANGELES (Reuters) – Record high U.S. gas prices threaten a new level of pain for casual dining restaurants stuck between value-oriented fast food and high-end eateries whose customers can afford to shrug off the economy’s woes.

Shops and restaurants around the United States are reporting fewer visitors in the face of a credit crunch, mortgage crisis and price and fuel inflation.


Now-common $4-per-gallon gas is a psychological jolt for many, said Bob Goldin, executive vice president at restaurant consulting firm Technomic.

“It’s been a tipping point,” he said, forecasting fewer visitors and less spending at mid-tier restaurants and coffee chain Starbucks Corp.

Reuters