3 ms·
Right, they "have room" to absorb costs but are definitely choosing to pass cost increases (labor and otherwise) to consumers.
by add-sub-mul-div 2y ago
Right, they "have room" to absorb costs but are definitely choosing to pass cost increases (labor and otherwise) to consumers.
- lazzlazzlazz 2y agoThey aren't simply "choosing" to pass cost increases to consumers. There is extremely little "room" (restaurants have extremely low margins) so they reprice in order to remain profitable; other restaurants (subject to the same labor cost increase) do similarly or go out of business (supply declines) which also results in price increases.