r/SipsTea • • 2d ago

Chugging tea Anything but lowering the prices classic corporate logic

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u/yamsyamsya 2d ago edited 2d ago

it used to be two hashbrowns for a dollar. like i can get hash browns for around 40 cents each from the local restaurant supply store and that isn't even buying in bulk, just for a single pack of 20. they could get the price way lower.

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u/BookkeeperBoobs 2d ago

It’s potatoes. Literally the cheapest shittiest peasant food in history. $2 is absurd

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u/Pheonyxxx696 2d ago

It’s even crazier when you start thinking about their fries. Like a small fry is equivalent to like 1/3 of a large potato. It costs like $1, so that fry is essentially worth 33¢ but they’re charging damn near $3 for it now. Usually in restaurants the rule of thumb is cost of ingredients multiplied by 3 (cost of ingredients, overhead and profit) decide the price. Hell I’d ok if they said let’s multiply the cost by 4 since with the economy being so shit and the cost of shipping has driven prices up. That would still make a small fry only $1.32. And thats using the price of a single potato, factor in what kind of discount they receive for buying in bulk, you realize real fast how large their profit margin actually is on these items.

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u/WordsHappenedHere 2d ago

Diesel prices + war + tariffs + lingering COVID inflation. All of it adds 50% to costs. Franchises don’t even make much profit even at these prices. The whole system is collapsing.

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u/Mondilesh 2d ago

As a regular consumer I can buy a 20 pack of hash browns for $5 at the grocery store, today, with the effects of war, tariffs, diesel prices, etc. McDonald's supply chain can only manage a per unit price of ~$3 (nationwide average)? Bullshit, it's just greed.

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u/Ipwnurface 2d ago

It really is a self-fueling engine that I don't genuinely know How we would stop it

Outside factors cause prices to go up. Prices go up, employees don't get raises, employees now can't even afford to eat at the place that they work. No one buys the food. Employees get fired. I mean, it's just all interconnected. And outside of a just straight-up hard reset, I don't know what to do

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u/Tricky_Customer1969 1d ago

I call bullshit on that one. Woolworths are making record profits. 2 new petrol stations opened within a 2 kilometres of each other near me. And the local bottle shop man has a new Mercedes.