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points by doctorpangloss 3 days ago | 0 comments

San Francisco forbids formula stores in many places. Okay, so we don't have a Chipotle and a Nordstrom Rack on Valencia St, but then a burrito on it costs $24.

[–] FuckButtons 3 days ago

Bristol is not SF. The cost of living is vastly less in the uk, especially outside of London.

[–] doctorpangloss 3 days ago

okay but why? cost of living is less in america's burbs too. you are getting cause and effect reversed: the huge chain stores and PE firms, they are very efficient, i mean that's why they grow so big, and being efficient is strongly associated with lower prices.

[–] asdff 3 days ago

In stuff like restaurants though it translates to increased margin not lower prices. Mom and pop restaurant margin is like a few percentage points if you are successful. Some franchises sniff 10 even 25% for say a chic fil a.

[–] andyferris 3 days ago

PE firms are efficient... at maximising equity. A good example of what they do is find the maximum viable price consumers will pay.

A small business might be less accurate - figure out a "reasonable rate", and therefore charge less.

[–] blululu 3 days ago

A burrito at Chipotle in San Francisco is already like >$20. That's just the state of things.

[–] doctorpangloss 2 days ago

it's $12.65... you can order online at a san francisco location and see for yourself...