/ Why do we keep driving to far away stores that are understocked, understaffed and don't care?
#121
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sixdogs
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That is very true. Right now out here is a major chain that was recently purchased by another group and the first thing they did to try to increase margins was to downgrade food quality. I drove by recently and at peak Sunday breakfast time there were only a few car in the lot. Another chain across the street--with great food--was packed. But, what do I know? I'm just a customer.They're following what I call the Grandy's Bankruptcy Model(tm). It goes like this:
Restaurant (or store) A has a decent business going and things are good. One day Restaurant B opens up across the street, taking half their customers. Restaurant A, which is now making half as much as before, panics and tries to figure out how to restore their margins. Their thinking is always the same - "let's use cheaper ingredients and employ less staff, that'll surely bring our customers and our profit back." Surprisingly to them, their now worse experience drives away even more customers, causing the owners to double down on their cheapness, resulting in a death spiral that inevitably leads to bankruptcy.
Rarely do they realize that their only chance to win that war is to get better, not worse, even if it means increasing costs and charging more. It doesn't always work out as some businesses are destined for failure, but offering a worse product with a worse experience is just asking to be put out of business.