Showing posts with label market forces. Show all posts
Showing posts with label market forces. Show all posts

Friday 4 March 2022

*Shrugs*

Fewer workers returning to the office and a shift to hybrid working have caused the owners of Pret A Manger to warn it could go bust.

Oh well, shame.  

The coffee shop chain said there were 'uncertainties' that may cast 'significant doubt' over its ability to continue trading in accounts filed earlier this month.
Among these was the 'unpredictability of consumer behaviour' as well as the possibility of new pandemic restrictions and the ability to keep paying its debts.

They've realised that the government can shut their business whenever it wants. Perhaps they shouldn't have slavishly allowed them to think that, then? 

Pret, which has nearly 470 branches, relies heavily on office workers and commuters.

As I've said before, if the customers' habits change, then the business must too. Or die.  

Friday 19 November 2021

As Threats Go, It's Not One I'm Bothered About...

Britain could be flooded with...

Oh no, what now? 

We've endured illegal immigrants, chlorinated chicken, Covid and rap music. What existential horrors await us now? 

...books using US spellings and words if ministers push ahead with changes to copyright rules, say publishers.

Oh... 

Book rights are currently sold in a way that allows them to sell titles at different prices in different territories. This supports the British book industry and authors.
But the Government is looking at an ‘international exhaustion regime’ which could open the way for internet retailers to flood the market with cheap imported editions.

So a cozy protection racket is coming to an end? Usually that's a good thing, unless it might unleash calamities undreamed of, of course. 

Might we get an example? 

The Publishers Association fears this would lead to the Americanisation of books in Britain. ‘We will see an influx of cookies, sweaters and sidewalks instead of biscuits, jumpers and pavements – as well as the missing u’s and z’s instead of s’s that drive Brits bonkers,’ said Stephen Lotinga, chief executive of the Publishers Association.

 I think I'll survive. Now, I need to sort out a packet of Maryland biscuits to go with my morning cuppa...

Monday 30 August 2021

The Perils Of Multinational Chains...

Co-op boss Steve Murrells has worked in the retail sector for decades, so when he says shortages are 'at a worse level than any time I have seen', he has to be taken seriously.
But bare shelves at his supermarkets are not the only sign that something's up. McDonald's stopped serving milkshakes and bottled drinks this week after becoming the latest victim of a nationwide shortage of delivery drivers. Chicken chain Nando's shut 50 outlets last week after its suppliers struggled to deliver enough peri-peri wings. And at Marks & Spencer stores, signs were put up warning customers that some bakeries have run out of fresh pastries due to 'delivery issues'.
These aren't 'shortages' as we normally understand them. 

The country's not running out of flour and eggs, and there hasn't been an outbreak of bird flu that has wiped out the supply of chicken, or another foot and mouth disease outbreak that has loosed DEFRA kill squads on our dairy herds...

But restaurant and fast food chains insist on control of supply. If Mrs Miggins running the corner shop cafe finds she's short of flour at the local cash and carry, she can nip to Tesco. The manager at the local McDonald's branch can't pop into Sainsbury and buy up all their milk, because he's not allowed to - McDonald's milkshakes can only be made with milk supplied by their own delivery service.
The haulage industry is labouring under a shortfall of around 100,000 truckers. The problem is so acute that the Government is considering increasing the maximum allowable length of an HGV by 6.5 ft.

So, is this the dreaded effects of Brexit that the Remainers warned about? No. It's government interference accompanied by market forces.  

Take the length of the average trucker's working week. HGV drivers are restricted to driving ten hours a day (up from nine pre-Covid), but factor in waiting times and they can be out of the house for 12-15 hours a day. The impact this has on family life has driven many younger drivers out, with the result that 62 per cent of the workforce is over 45.

But doesn't it pay well? 

Meanwhile, driver pay has slipped to the point that they get little more than supermarket shelf-stackers, partly due to the Government blocking a loophole that allowed them to operate as limited companies.To make matters worse, the number of drivers entering the industry for the first time has been badly hit by the Driver And Vehicle Standards Agency cancelling 'at least' 30,000 HGV driving tests last year due to Covid.

Oops!