Welcome to the federal menu mandate:
Davinni's a local pizzeria-sandwich restaurant with 22 locations around the Twin Cities, will now have to comply with this mandate. A caller to my Saturday show (who wished to remain anonymous) told my radio partner Mitch Berg during a commercial break that it will cost Davanni's approximately $200,000 to comply with the new mandate -- just to start. Every menu change will require Davanni's to have the new or modified items re-analyzed, which means that Davanni's will probably resist adding new options for their customers. Meanwhile, larger chains with more economy of scale for such efforts such as Pizza Hut can do the tests once for all of their locations, keeping their prices lower for their customers -- which they already do, thanks to consumer demand for the information.
Under those circumstances, will Davanni's feel compelled to keep the extra three locations open, or to scale back to 19 to avoid the mandate? Even if they do keep all of their locations, that $200,000 will now get spent on something other than new jobs for teenagers and adults, and customers will pay higher prices for their food. Local and regional chains with 15-19 locations have a big economic disincentive to expand any further. I don't know much about Davanni's bottom line, but I'm pretty sure that even though they make some of the best pizza and hoagies in the area, they don't have $200,000 lying around the pizza sauce to blow on lab analyses this year, or any other.