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> These companies have been hiking prices for years, but really started to turn the screws during the post-covid inflationary period. One of Schwenk's sources i
by locallost 2y ago
> These companies have been hiking prices for years, but really started to turn the screws during the post-covid inflationary period. One of Schwenk's sources is Josh Saltzman, owner of the DC sports bar Ivy and Coney. Ten years ago, Saltzman charged $3 for fries; now it's $6 – and Saltzman's margins have declined. Saltzman has a limited number of suppliers, and they all get their potatoes from Big Potato, and they bundle those potato orders with their other supplies, making it effectively impossible for Saltzman to buy his potatoes from anyone else.
I've had the same opinion for a while now. Something has malfunctioned with the market economy if jacking up prices does not bring in competition that can do it for less.