jordanlund@lemmy.worldM to Business@lemmy.worldEnglish · 8 months agoCostco cracking down on non-members eating at food courtswww.nydailynews.comexternal-linkmessage-square14fedilinkarrow-up156arrow-down13
arrow-up153arrow-down1external-linkCostco cracking down on non-members eating at food courtswww.nydailynews.comjordanlund@lemmy.worldM to Business@lemmy.worldEnglish · 8 months agomessage-square14fedilink
minus-squareChe Banana@lemmy.mllinkfedilinkEnglisharrow-up13arrow-down2·8 months agoIt’s not losing money, it’s losing a percentage of profit. Say 10 hot dogs cost 1 dollarydoo. 1 hot dog sells for 1 dollarydoo that’s a 10% food cost. Enter bullshit inflation, hot dogs now cost 2 dollarydoos, so each one sold at 1 dollarydoo is now at 20% food cost. that 10% comes out of profit margin unless your labor & fixed costs are 0.
It’s not losing money, it’s losing a percentage of profit.
Say 10 hot dogs cost 1 dollarydoo.
1 hot dog sells for 1 dollarydoo that’s a 10% food cost.
Enter bullshit inflation, hot dogs now cost 2 dollarydoos, so each one sold at 1 dollarydoo is now at 20% food cost.
that 10% comes out of profit margin unless your labor & fixed costs are 0.