This can’t go on like this forever or this country is in real trouble. By the way, both Diners have already had to let staff go and have family members fill in. This is one example. I have some family members with small businesses with similar stories.
This is a slight variant of the popular "inflation is caused by corporate greed" argument. Assuming everything is as presented, how could it possibly go on forever? Do you think we'll have a world of empty restaurants asking $50 for coffee?
Free markets adjust. But often, politicians have other ideas. How long were the small businesses involuntarily locked down? They may already have been distressed financially before the inflation added insult to injury.
In response to high gas prices, the UK is preparing to implement a windfall profit tax on energy companies. This will starve them of capital for expansion, while discouraging new providers. Supply will be restrained at a time when it's desperately needed.
Both businesses had lines out the door until recently. I don’t remember either being shut down and during the worst of Covid, they had thriving take out business and really nice outdoor seating. I am not so sure this time things will adjust. I checked on both Yelp and Trip Advisor on another Diner that was our backup place when lines were long at these two. They hadn’t updated the menu prices on line so we went there only to find the same very high prices. The owner cane over to greet us as we have known him for a million years also. He chatted like he was so thrilled to see us and there were only a few customers in a big place and two instead of 6 waitresses. We of course didn’t talk business just how is the family etc. Unfortunately, in this environment, I think restaurants will be some of the first victims of inflation. Across the street from this diner there used to be 3 businesses that had been there for years. A bar, a take out pizza place, and a deli. All empty and out of business now. As to the UK situation,
Socialism never works in the long run.
I don’t remember either being shut down and during the worst of Covid, they had thriving take out business and really nice outdoor seating.
I stand corrected. Nevada and other states had severe shutdowns. But closure of indoor dining is an abrupt business transition. And we don't really know how it affected their financials. We have better info on publicly traded companies, and the big ones (e.g., WMT, TGT) are indicating margin pressure. They believe demand will drop sharply if they raise prices.
As to the UK situation,
Socialism never works in the long run.
Yes it inevitably falls short of creating utopia, but it can be effective at the unstated goal of destroying political enemies.
Get ready for a Rocky start Tuesday. The usual. Inflation and oil prices rising too. For now strong dollar. As always, just my opinion. Bad inflation news from Germany. More Euro sanctions against Russian oil imports being phased in.
I just called to complain that some of my securities transactions were inaccurate on my Lot Summary pop up boxes. What a Mickey Mouse operation. Everything is fine in my more important Account History section. But it obviously kills my thumbnail view of things.
Continue with Google