Greedflation

It was yoga mat material, believe it or not.
Again, I def don't eat chicken but when I did, chic-fil-a was way better than subway IMHO.

 

In my opinion the publix sub cult started in the 90s when subs were ridiculously inexpensive and still loaded with meat and veggies. They really used to be a great value but I agree now. They are solid but not worthy of the crazy following they have now.

 

I understand the concept of elasticities. Essentially you are saying companies should price at some other point than the intersection of the supply and demand curves, which can potentially lead to stock outs. If supply decreases, in the short term, for such reasons as pandemic constraints, and demand increases, due to government stimulus, the resulting equilibrium price is going to increase. You are suggesting they should not price at the efficient market price, which would be a dereliction of duty towards the shareholder-owners.

It is odd you use the concept of elasticity to support steady prices. If the demand is inelastic small supply movements cause big price swings, which can easily be seen in the price of gas. So short term inelasticity should cause price hikes and longer term elasticity lead to lower prices. So the market is working exactly like it is supposed to.

 

You don’t have to shop at Publix. There are places that are cheaper. You seem to demand a premium experience but aren’t willing to pay for it.

 

Subway is notoriously one of the cheapest franchises to get into, they basically have no standards and don’t care so long as people pay franchise fees and buy their marketing/branded materials.

As far as the private equity dropping the $5 footlong and driving prices to $14, not sure I’d blame that aspect as franchises were probably getting squeezed by the $5 price point anyway. Unless they did something else like raise the franchise fees or commitments, which could also be true apart from that key promotional offer. Ultimately there’s a lot of competition out there and Subway is bottom of the barrel on quality. Their only real selling point for basically their entire existence has been convenience, and assuming they are still a cheap franchise to get into today that would still allow them into locations other franchises might not go.

 

I'm not that hard on them. One reason there are so many is that they can go anywhere because they don't fry. And that required a much more complex vent system, etc. I guess they've started slicing meat to order a few years ago. I think lots of states have minimum age to operate a slicer. So it use to have that restriction.

 

I probably haven’t actually tried a Subway sub for at least 20 years lol. Yeah, their quality was never particularly good in the first place. Weren’t they also one of the fast food places with “yoga mat material” in their bread?

Indeed they were.

Subway Wasn’t the Only Chain to Use the ‘Yoga Mat Chemical’ in Its Bread

 

I wonder what the few people on the top rung of a communist country would do in their (greedy business people's situation) place. Nothing, because they have nothing extra to sell and no one ever even makes money except for the few at the top... and their cronies.

 

Bump

 

Coca Cola admitted openly they wouldn't change their pricing until they saw consumer behavior change. They initially blamed increases on aluminum shortages but my beer barely went up in comparison and off brand soda is still half the price of Coke.

Now I think that's their prerogative to do so in their case because soda isn't a necessity and if people choose to be slaves to their habits then so be it but my wife and I have simply stopped buying it along with a number of other things we don't see value in. And while inflation sucks, we are doing much better than many others despite not making huge salaries. Our pay has kept up with inflation although obviously not as much as we'd like and retirements are doing great after years of living modestly and investing.

People need to change their buying habits.

 

Kroger Annual Net Income
(Millions of US $)
2024 $2,164
2023 $2,244
2022 $1,655
2021 $2,585
2020 $1,659
2019 $3,110
2018 $1,907
2017 $1,975
2016 $2,039
2015 $1,728
2014 $1,519
2013 $1,497

Someone explain to me how this is greedflation.

 

I'm not here to defend or admonish Kroger. But net income isn't going to be a good indicator. If they gave massive bonuses to executives, or something like that it, it would not show up on their net income. So they could be price gouging, making shitloads of money, and just moving it around before it hits their bottom line. No clue unless you dive deeper into the numbers.

 

I’d be shocked if bonuses were so high that it materially affected financial results.

 

Go to Aldi, Super Walmart, Super target and avoid Publix if you think they are screwing you.
Publix isn’t subverting anything they are creating a better shopping experience and people are willing to pay for it.

It’s like comparing the price you pay for a steak at Ruth Chris and Sizzler.

 

Seems like their income far exceeds any non-profits I know of

 

On that large a scale. Very unlikely.

 

True. I was just saying in general. There would be better indicators than just net income.