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View Diary: Vote for Romney or we'll raise our prices. (243 comments)

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  •  There's a lot of money to be made (4+ / 0-)
    Recommended by:
    drmah, caul, Larsstephens, ArchTeryx

    By sourcing low quality ingredients in large volume, and charging a premium for them, while paying your workers crap wages.

    •  Absolutely. (1+ / 0-)
      Recommended by:
      radical simplicity

      And that's one of the big attractions to the chains.  They can undercut the local one-restaurant competition.  Seen that a lot, too, though they usually don't succeed in driving out ALL local competition.

      But if they start hiking prices artificially across the board, guess what?  Suddenly they've lost their greatest asset; they're in Premium Price territory with a decidedly non-premium quality of product.  Want to drive everyone to a local chain?  Hike the prices above the local chain's for a cookie-cutter crap product.

      They'd be slitting their own throats.  Expect major franchisee rebellion if he actually goes through with that threat.

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