Chain restaurant group launches anti-RFS campaign

White Castle’s president, Lisa Ingram, will join other chain restaurant leaders and legislators on Capitol Hill this morning to kick off a campaign to repeal the Renewable Fuel Standard — the requirement to produce increasing amounts of ethanol from corn, which they say has hiked the cost of food to unacceptable levels.

“The federal (Renewable Fuel Standard) mandate drastically manipulates the corn marketplace and increases commodity and food costs across the supply chain — from farmers and chain restaurants to consumers and diners,” the National Council of Chain Restaurants said in its announcement of the news conference.

Corn prices hit record levels in October, thanks at least in part to a nationwide drought, according to the Chicago Board of Trade. Higher corn prices eventually translate into higher prices for animals that eat corn — cattle, pigs, chickens — as well as their products, such as eggs and milk, not to mention cooking oils.

“We are seeing unprecedented increases in food prices,” said Jamie Richardson, vice president of government and shareholder relations at White Castle, who will be part of the Capitol Hill event today.

White Castle is paying 47 percent more than it did in 2005 for the beef in its Slider sandwiches, Richardson said. “We estimate that in 2011, the Renewable Fuel Standard cost White Castle $12,000 to $15,000 per restaurant,” he said.

Higher food prices are adding to food insecurity worldwide, Richardson said, quoting from a recent report by the nonprofit advocacy group Feeding America.

Higher beef prices also means White Castle and other restaurant chains have to raise their prices.

“We have a great reputation with our customers for providing value,” Richardson said. “We feel we still do, but it gets more and more difficult each time we see the price of beef go higher.”

In September, Ohio’s renewable fuel industry formed its own coalition, Fuels America, to defend the renewable fuel standard.

“Our support for this coalition is based upon the truth that ethanol is vital to all of Ohio’s economy,” said Mark Borer, president of the Ohio Ethanol Producers Association.