Have been sunning old Uncle Bob's buns this week. In between getting a little sun, caught a CNBC special report on the price of Fish, and more specifically, the price of sushi. They were talking about increases to the tune of 40-50% as demand continues to skyrocket and supply continues to be limited. Wondering if this might show up in the margins in the coming quarters and what management plans to do to handle what appears to be something that will impact about a third of the business base? It would be a good series of questions for the conference call. Have we seen the impact? If so, to what extent? What actions does management plan to take to manage the impact (alternative suppliers, price increases, etc.). How sensitive does Management believe our customer base is on price? Mid-term, long-term anticipated impacts, etc. If we have any experts out there, now is the time to wade in with your views. Any EDUCATED views out there?
The problem is the high world demand of Wild Blue Fin Tuna - will be passed on to the consumer as demand increases and supply decreases. It is a good point to bring up on the conference call and find out what percentage of the sushi served at Kona is Blue Fin. I know they offer Yellow fin and other varieties of sushi. Of all of my trips to Kona I have only had Sushi once, but it is a large percentage of sales and historical high margins.