Why does fast food cost so much?

We all see ads on TV from Dominos and Pizza Hut etc with their cheap Pizzas and wonder why are we paying so much more for locally made and in most cases superior product?

Could it be something as simple as Economics as the further delivery companies have to go to transport Pineapple to local shops etc the more it costs Pizza eaters in order for the shop to make some sort of profit to keep the doors open.

It’s not really fair considering it takes a lot of transporting to provide ingredients to suburban stores around Australia whilst the areas that provide the ingredients have to pay more.

The big businesses/corporations are lucky, The prices of the local McDonalds and Subway outlets are the same as their suburban counterparts but they have the advantage of being part of a corporation that can buy in bulk and spread the ingredients around by the truck load whilst local shops have to be careful with their supplies.

The local shops are burdened with the question of how far low in cost per Pizza can they go without cutting too much into the profit margin and without sacrificing the quality of their product, nobody wants to pay less for a bad pizza and if the pizza is bad then the business would soon close.

What are readers thoughts on things? Comments always welcome here and on Facebook just make sure it is PG.

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2 thoughts on “Why does fast food cost so much?

  1. As the owner of Subway in Deni , I just want to let you know $4.27 is added on to each and every item we purchase thru our distributor because we are a remote location. We are a small business owned by myself and my husband and we chose to absorb this cost rather than pass it onto our customers. We follow Subway RRP, but are free to chose our own prices. Deni Subway also sponsors many local sporting groups , it’s Subway Corporate doing the sponsorship.

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