Originally posted by UncleVic
Hmmm... Hate these political type arguments... But lets say a corporate company buys 50 tons of flour a week, thus creating major savings / discounts in their pockets! Small company gets "squeezed" because they're buying smaller quantities and not getting any savings... Thats one type of squeeze.
I see what you're getting at, but I'm not sure the economics of it are quite so clear cut. For one thing, flour is an inexpensive commodity even in small quantities, so I'm not certain that the percentages are all that advantageous to Krispy Kreme. For another, your argument would logically suggest that because they get cheaper ingredients than a mom and pop, Krispy Kreme are able to undercut the M&P's prices. Yet my experience is that Krispy Kreme doughnuts are actually MORE expensive than doughnuts from local shops. My local Krispy Kreme, which is in the food court at the Prudential Center in Boston's Back Bay, charges $6.99 for an assorted dozen doughnuts. An assorted dozen at Twin Donuts, the M&P just up the street from me in Union Square Allston, is $4.99. Who's undercutting whom?
Never said KK was bad, but if one of my neighbors is trying to make a living I have to support him first!
A fair point, but not one that applies when it comes to doughnuts, at least not where I live. I mean, I buy almost all my CDs at Newbury Comics or Twisted Village instead of the Virgin Megastore, because they're local businesses. But both the local businesses and the chains are selling the exact same CDs
. I can get the product I want from the local store as easily as I can from the chain. But as I said, there's not another place around Boston to buy southern-style doughnuts except for Krispy Kreme, and there's a big difference between the product at Krispy Kreme and the product at the local mom and pops. Why should I support the local business if they're not providing the product I really want?
I consider myself a fairly altruistic guy, but I have my limits.
Or I can support a company paying it's employees minimum wage that wont even cover their rent nowdays (Yet making massive profits).
Again, a valid point...except that I'm willing to bet you a dozen doughnuts from the shop of your choice that the Russian immigrant teenagers who are manning the cash registers at the aforementioned Twin Donuts whenever I'm in there aren't making any more than the employees at Krispy Kreme, and I'm very doubtful that they have health insurance, much less a 401(k).