Archive for the ‘Fast food’ Category

How many chickens does Costco buy & sell each year?

December 14, 2018

According to CNBC

Costco is shelling out $440 million to open a Nebraska chicken farm.

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Why is Costco doing it?

“To partially escape the American chicken monopoly run by the likes of Tyson, Pilgrim’s Pride and Perdue.”

Technical note to CNBC: A monopoly has only one supplier.  A duopoly has two. When there are three, it’s a concentrated competitive market.

The self-operated farm provide Costco with 100 million chickens … 40 percent of its yearly chicken needs.

Doing the arithmetic, that means that Costco goes through about 250 million chickens every year.

That’s a lot of chickens but pales in comparison to KFC which reportedly goes through 3 or 4 times as many.

Personal note: Many, many years ago, I interviewed for a position at KFC as a chicken buyer. I was recruited because I had an economics degree and had worked for a large grocery store chain.

It wasn’t a good fit. (<= understatement)

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Trick question: how much does a $5 footlong sub cost?

August 21, 2012

At the Georgetown student center’s food court, it’s now $5.25.

Ouch.

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I don’t know if it’s the end of a promotional era or just DC area inflation, but I was sticker shocked when I saw the sign saying the price on my cold cut trio had been jacked up by a quarter.

Trade reports say Subway’s trademarked $5 footlong pricing was a resounding “value pricing” success … driving volume … but, apparently, not enough profits.

Somehow, a $5.25 footlong doesn’t have the same promotional ring, does it?

Oh well.

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