Chains Execs: Federal Ethanol Subsidies Hitting Our Bottom Lines

Executives from some of the country’s largest chains met at a National Council of Chain Restaurants summit in Washington, D.C., earlier this month to discuss an industry-wide advocacy stance on reforming federal ethanol standards and subsidies.

Almost two dozen chain executives, including participants from Brinker Int’l., Carlson Restaurants Worldwide and The Wendy’s Co., attended the NCCR Food Supply Chain Committee meeting. It was the third such meeting held this year. They focused on the impact the nation’s ethanol policy is having on rising commodity prices. The executives met with legislators, economists and suppliers to discuss the nation’s renewable fuel standards and their impact on the chain restaurant industry, their customers and food prices.

“Through years of promoting ethanol as a solution to America’s energy issues, Congress has unknowingly worked to increase commodity prices on retailers throughout the supply chain,” said NCCR Executive Director Rob Green. “These subsidies have artificially increased the price of corn, which in turn has driven up costs for restaurants and the customers they serve.”

The NCCR is a division of the National Retail Federation.