• Che Banana@lemmy.ml
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      8 months ago

      It’s not losing money, it’s losing a percentage of profit.

      Say 10 hot dogs cost 1 dollarydoo.

      1 hot dog sells for 1 dollarydoo that’s a 10% food cost.

      Enter bullshit inflation, hot dogs now cost 2 dollarydoos, so each one sold at 1 dollarydoo is now at 20% food cost.

      that 10% comes out of profit margin unless your labor & fixed costs are 0.