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This is an actual thing chains do. My understanding is that much like Coke/Pepsi it’s often about maintaining competitive parity. What they’re afraid of is not
by TylerE 3y ago
This is an actual thing chains do. My understanding is that much like Coke/Pepsi it’s often about maintaining competitive parity.
What they’re afraid of is not doing that, and then the area goes through a growth spurt and suddenly you’ve got a town that your competitor owns. This even applies when the stores are minimally profitable, because if you don’t bother, then the competitor that does actually makes a profit because they have no competition. It’s almost a form of retail Mutually Assured Destruction.
- xtiansimon 3y agoOr something else. My town has 7 “pizza” places, 4 Chinese, and so on. All privately owned. An Indian owner opened a hamburger concept when we already have two excellent options. They didn’t last. We don’t have an Indian (vegetarian) restaurant. I thinking my restaurant entrepreneur community would rather compete t against other successful businesses. Like a sports team.