The reason you get big items with your coffee, is because there are costs associated with running a brick-and-mortar storefront.
In this case, the food [in this case, typically flour, sugar, yeast, water, etc.] is the cheap part. The building and the wages [and benefits] are the expensive part. And as the price of gasoline/diesel fuel goes up, so do the prices of the things that depend on fuel go up. Cooking costs are part of that, as well as shipping the raw materials around the country.
However, if they started raising the prices to reflect the fuel, raw materials price increases, wages, insurance, worker's comp insurance, etc., without making the physical object larger, people would stop going there, because they would not see the hidden costs. So they make the bagels two or three times larger than they used to be, so they can raise the prices without people going elsewhere.
And we become two or three times larger than we used to be.
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Date: 2011-04-20 02:34 pm (UTC)In this case, the food [in this case, typically flour, sugar, yeast, water, etc.] is the cheap part. The building and the wages [and benefits] are the expensive part. And as the price of gasoline/diesel fuel goes up, so do the prices of the things that depend on fuel go up. Cooking costs are part of that, as well as shipping the raw materials around the country.
However, if they started raising the prices to reflect the fuel, raw materials price increases, wages, insurance, worker's comp insurance, etc., without making the physical object larger, people would stop going there, because they would not see the hidden costs. So they make the bagels two or three times larger than they used to be, so they can raise the prices without people going elsewhere.
And we become two or three times larger than we used to be.
--Hawk