2 ms·
> It makes sense that dining out is expensive, but it's weird that premade meals in grocery stores are so expensive, and that there's not a super cheap middle g
by bsder 11mo ago
> It makes sense that dining out is expensive, but it's weird that premade meals in grocery stores are so expensive, and that there's not a super cheap middle ground where they use economies of scale to have 1 person cook cafeteria slop for 100 and sell it for pennies. Is it a food safety thing?
Most of what currently ails the restaurant sector can be traced to real estate costs. Even if your food and labor are free, real estate kills you as you have to put your restaurant where your customers can get to you.
And the problem is being exacerbated by private equity having piled into commercial real estate. I can point to all manner of restaurant sites that closed up because the rent got jacked up and then were left idle for 5+ years. Standard landlords simply can't eat that level of rent loss. Private equity, however, will take an almost infinite loss in cash flow as long as they can kick the can down the road indefinitely and never have to pay actual cash.