Since the RFS was implemented in 2005 and expanded in 2007, the restaurant industry has faced unprecedented food cost volatility and escalating inflation as more land has been diverted away from producing food to produce biofuels. In a highly competitive pizza industry, the ability to pass along higher food cost to the consumers is limited.
The RFS has led directly to margin squeezes for the pizza restaurant operator and is estimated to cost quick service restaurant operators $18,000/restaurant annually.
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