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Is Competition Really That Wasteful?

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Touch the Soil News #525 In this era of less-than-abundant natural resources, it is not unusual to see vacant lots and perfectly good buildings sitting idle and just going to waste. Unfortunately with the emergence of idle facilities also comes the demise of jobs and companies that were occupying those facilities. As we have always said, the food chain is one of the more interesting places to gain economic insights about our lives and economics. Rather accidental, a handful of statistics about the restaurant sector has come into our hands that weigh in on the vacant buildings in cities. In recent months, 10 companies overseeing 17 restaurant chains have filed…

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The Economics of the Food Chain Don’t Lie

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Touch the Soil News #504 We often hear the economy has rebounded and improving. However, when it gets down to it, the economy runs on paychecks that leave folks with some spending power above the basics. The restaurant industry is the first to feel a recession as purchasing power among the masses weakens. And 2016 has not been nice to restaurants. Two thirds of all restaurant company stocks have fallen so far this year with the average decline at 8.3 percent. The cause of the drop in stock values comes from declining consumer spending at restaurants. This softening of spending has precipitated the largest wave of restaurant bankruptcies in modern…

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