4 ms·
I am not the GP, but I will offer some concerns for a "city operated" grocery service: 1. The incentives for good service and product are not well-defined othe
by jschveibinz 1y ago
I am not the GP, but I will offer some concerns for a "city operated" grocery service:
1. The incentives for good service and product are not well-defined other than paycheck and goodwill. This must be a very high priority.
2. The city has many responsibilities--some critical to life and civil order--which are of much greater importance than grocery service. Therefore the competition for money and resources is weaker.
3. A large percentage of state and city residents and taxpayers--who are ostensibly the benefactors of the grocery service--may not see any benefit at all from the grocery service because of location, selection, convenience, etc. This immediately creates an antagonistic relationship with a class of people--may leading to legal challenges.
4. Starting a grocery service requires very large investments of capital. Typically, that capital investment has a potential ROI, e.g. a bond. If the goal is to sell groceries at lower prices (and profit margins), this may not be sufficient to satisfy the financing requirements--which can lead to bankruptcy.