Was Nike earnings a shot across the bow ?

Discussion in 'Economics' started by The_hero, Jun 30, 2024.

  1. The_hero

    The_hero

    Inflation really hit SBUX hard.
     
    #11     Jul 1, 2024
    nitrene likes this.
  2. nitrene

    nitrene

    True but another factor is the same problem plaguing the restaurant businesses in general which is the business model has changed radically by the high service employee salaries. Inflation of the salaries is the real problem. I think you could have paid people $8-10 before 3/2020 but it is probably double that now.

    Here in the SF bay area restaurants still can't get enough employees to work at their establishments due to the high cost. I went to a cafe the other day and there was 1 employee in the whole cafe. It took 40 minutes to get a small cappuccino.

    The same is true of the buffet industry. It died in March 2020 and never came back. Even in Las Vegas which is the headquarters of buffets it has only returned in a limited fashion.

    I read in SF the restaurant's solutions was to add exorbitant fess upwards of 20+% but there is push back form the customers so there is no great solution. You just have to get used to higher prices for eating out. I guess it has become a luxury like a lot of things in society now like going to Disneyland, owning a home in SF, skiing in Lake Tahoe, etc. So the middle class will continue to get killed. The SF bay area has been a place for millionaires for a while now, so no surprises.
     
    #12     Jul 1, 2024
  3. ironchef

    ironchef

    Like my hometown, LA, unhouse millionaires?
     
    #13     Jul 2, 2024