Originally Posted by
T. Mac
Subway did what any business must do, they raised their prices to cover their costs + and sold their $5 sandwiches for $7.50. Just the building rent in SF probably precluded their selling sandwiches for $5. but to add on the required increase in wages; and remember that unemployment and workman's comp insurance are based on total payroll and also went up due the the minimum wage increase, was just the focal point for their exclusion of SF stores from their promotional rates.
Also on a similar but separate side not, there was an interesting article in Bloomberg's Business a couple issues ago on how food prices are getting ready to skyrocket. They said something along the line that corn would be the starting point with drought related shortages in the US further accentuated by bio-fuel demand and increase demand for livestock feed as more third world country populations join the middle class income levels and now demanding more chicken/beef/lamb... in their diet. According to the article corn prices are now at an all time high and projected to go much higher. With such a demand, farmers will tend to plant more corn at the expense of other crops now creating shortages in those corps, building what could become a new price bubble in food.
T. Mac