Recession Challenges

Although the Recession may not be as bad now as it was 2 years ago, we are still in a time where money is tight. When the economy goes down, one of the first divisions of business that will take a hit is the restaurant business. Now depending on what kind of restaurant you run you may experience different effects then others. For example, I my self run a lower priced fast food restaurant and do not feel the recession had to much of an effect on our sales. I can also say that companies such as McDoanlds who actually profit more during recessions did not due to bad as well. When looking at higher end, higher priced restaurants you may be able to see a difference. Restaurants are part of an industry where there are lots of different options, and when money is tight, the option for consumers is usually lower price. Although that is one of the main things that comes from recessions, are there any more problems we may face after this one has come to an end. If you take a look at past history, inflation always tends to go up after a recession. Whether it be cost of materials rising, or the biggest cost of employees. The cost of employees after this recession is over is going to be the major problem everyone faces. With Obamas new health plan, employers can expect to be paying high amounts for benefits. One thing that many suggest, hire more part time help. To get around paying for the high benefits cost, I feel as if a trend of more short time help will be around, rather then less long term help. Certain companies all ready take a lot of grief for these practices to this day, such as Wal-Mart, but looking at it from a business stand point, I don't see how you can argue that this approach is not correct. Cost of employees will drive everything up, causing prices to increase and customers to leave, creating more part time jobs instead of full time jobs, even though it may not be the best humanitarian thought, may be the best business approach.