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Profit in most industries is a few percent, esp. retail/food which are often c. 1%. The markets are highly competitive, and consumers will compare two stores:
by mjburgess 4y ago
Profit in most industries is a few percent, esp. retail/food which are often c. 1%.
The markets are highly competitive, and consumers will compare two stores: A, B and choose the cheaper.
- knute 4y agoI think there's a lot more that goes into where someone chooses to eat than price, otherwise Taco Bell would be putting Chipotle out of business. As explained above, I don't take it as a given that increased employee wages require increased prices.
- mjburgess 4y agoThen have a look into how much a taco bell franchise makes: https://sharpsheets.io/blog/taco-bell-franchise-costs-profits/ https://sharpsheets.io/blog/taco-bell-franchise-costs-profit... It's 15% "profit" on paper, but a franchiser is typically in debt for the first 12 years of the store before they make any "net profit". So we're talking an industry where most of the so-called "capitalists" are in debt. This is a hyper-competitive market place, and one play only adding on %s to their products will be a hit to their competitiveness. They dont decided prices, the market does.