Reading Comprehension

Other than the government, the restaurant industry is the largest employer in the United States, generating an estimated $550 billion in sales in 2008. The industry serves 133 million guests a day, and every dollar spent dining out generates $2.34 in business for other industries. In a nation where big corporations outsource jobs to foreign countries, the restaurant industry remains a bastion of small businesses and local operators, rooted in communities and neighborhoods. Seven out of ten restaurants are single-unit operators, as opposed to fast-food franchises.

Food and beverage costs are one of the most significant line items for a restaurant; nearly 33 cents of every dollar in revenue is spent on ingredients. Profit margins are not big in the restaurant world; 9 out of 10 restaurants don't survive the first two years of business. Of those that do, the average restaurateur earns about a nickel on every dollar in sales. An increase in food costs can have a dramatic impact on the bottom line. While the industry is used to fluctuations, recent increases are creating significant challenges. This year, the price of flour has risen by 87 percent, eggs by 73 percent, cooking oils by 49 percent, cheeses by 27 percent, rice by 25 percent and milk by 20 percent. These price-hikes come on the heels of double-digit cost increases last year.

While some factors affecting food prices are beyond our control, there are U.S. government policies in place that contribute to food price inflation. Food-to-fuel mandates and subsidies that encourage the use of grains for fuel instead of food should be revisited. A recent study concludes that these policies pit Americans' need for food against our need for fuel. While both are important priorities for the nation, the restaurant industry supports the development of efficient, renewable fuels, including the promotion of the use of recyclable restaurant oils, which could replace the current food-to-fuel subsidies and thus safeguard against price distortions in the food supply. These price distortions have and will continue to impact both restaurant customers and small businesses.

What is the function of the last paragraph of the passage?


(A) To examine common challenges to the claim that the restaurant industry is the largest employer in the United States.

(B) To provide a counterexample to the main thesis of the passage.

(C) To cite statistical evidence that the increase in food prices will undermine the American economy.

(D) To name both a cause of and a possible solution to the problems addressed in the second paragraph.

(E) To dismiss the common conception that America's need for fuel is more important than its need for food