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[quote=Anonymous]What’s happening now..in the restaurant industry, cars, grocery store food  etc is that the owners are trying to hang on to their profit margins. Some businesses are trying to recoup lost profits from the pandemic and other are learning that it’s more profitable to sell less at a higher profit margin than sell more at lower margins.

For restaurants, prices will not go down until the restaurants start losing money. There is simply no competition with lower prices.

Cars are really interesting. Car dealers stopped ordering entry level models because there were enough customers willing to buy up at full list if there were no other options. Now car manufacturers have dropped their entry level models in response. Car dealers are selling fewer cars but making a higher profit. They are banking on the idea that people will accept much higher service and maintenance costs because it’s a nicer car. If customers don’t they are screwed because lower volume means less service contracts which is where they used to make their money.

On restaurants, many will die. It’s taking longer because until interest rates come down fewer new restaurants will emerge. The pre pandemic ones  who are carrying a ton of debt are surviving on high prices and profit margins. If enough old debt free new restaurants emerge and consumers reject the high prices, the new restaurants will be able to lower prices but that won’t happen until there is enough competition and consumer demand.[/quote]

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