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>They honestly think that if they raise their prices to get the same profit (NOT increase, just to keep it the same!) they have been getting, no one will come a
by BuckRogers 5y ago
>They honestly think that if they raise their prices to get the same profit (NOT increase, just to keep it the same!) they have been getting, no one will come anymore because the cost is too much.
That may be true, but you mentioned they're in the midwest. So am I. I'm in the heavy hitter, Chicago, but I'm from Smalltown, Midwest. I can say that NOTHING is free. Everything is a trade off. All those years of low taxes? Yeah, no one has any money in the midwest. Raising prices may well run people off. They already got the reduced-risk benefit of the midwest for decades, ability to own the building, lower taxes. Having a poorer local clientele was the price for those securities. That was part of the trade off.
You aren't just flat out "getting a better deal" as they probably felt, doing business in the midwest vs coasts. It is absolutely not outright just a "better place to do business". Other than perhaps our environmental stability (the greenhouse effect matters less, no fires, abundant fresh water, no fault lines outside of the St. Louis locale, etc.), those things are starting to matter in a big way, but are of limited benefit to a restaurant.
They already took the benefits from this area. All comes out in the end, but generally the midwest grants you more stability/security, while you end up poorer at retirement than someone that earned more dollars on the coasts. Same end result for them, just like the rest of us.