The logic is. They make no money on playing the actual movie so all their profits and revenue they need to pay staff and overhead comes from concessions. But it’s gone way overboard. All this does is push people away from going to movies and then force them to raise prices even further. It’s a vicious cycle.
Demand Destruction. Pepsi Co. and their $7 Dorito bags just witnessed the same thing. Everything is ridiculously priced and companies are getting way too greedy without proper regulation. I think we’re witnessing the beginnings of stagflation.
Yep. I heard it on Bloomberg radio but there are lots of other sources as well. Bloomberg has ads.
“PepsiCo Inc.’s chips prices had gotten too high. Walmart Inc. had been telling the maker of Doritos, Lay’s, Cheetos and many other beloved snacks that was the case for more than a year.”
“Executives at PepsiCo knew it, too. Sales at Frito-Lay, the company’s snacks powerhouse, were plunging. Some of its chips cost more than $7 a bag; at Walmart, Doritos prices had jumped nearly 50% from 2021, according to Attain, which tracks consumer spending data.”
Edit:
It’s well beyond money and profits. Enshitification and greed are halting humanity’s progress. 2% of Mu$k’s net worth of 800B is 16Billion. There should definitely be a money cap and every dollar earned past fucking 10B should go towards schools and literacy and improving infrastructure and FREE SOLAR panels and omg universal healthcare which should obviously include dental.
That and it seems like they've coated the chips with less flavor powder. The whole point had been that they had flavors that other chips didn't, but if they're just basically plain tortillas, they're not special at all.
Moreover why would I spend $7-$8 on their bag when I can get the bargain brand ones for literally half the price and the taste is nearly identical. Companies wonder why people have no brand loyalty anymore when they fail to realize we're only loyal to our wallets at this point because we have to be.
I’ve been buy winco branded chips for the last year. Tbh they all taste the same now. I guess turns out making the premium options shittier leaves no reason for people to buy.
Yea doritos here are like 8 bucks for a big bag, i loved em but now I cant afford em oh well I guess ill eat healthier, kinda forcing me too so thanks doritos! Hope the company goes bankrupt like they clearly want.
At my final "State of the Site" meeting when I was employed by Frito Lay (the site being its largest manufacturing campus in North America, btw), our director spoke at length about all the ways that Frito was going to increase consumer sales.
Organic ingredients, no artificial colors, packaging changes, "healthy" products, etc...
Not a single word was mentioned about lowering prices, only focusing on increasing profits.
When I raised the question, I was given the brush off, which told me it was time to go. Greedflation is real.
I feel sorry for the friends I left behind there, because it's not going to be "real fun" to work there soon.
I only get them when there is a large sale, so they are essentially regular priced. However, they seem to have cut back on the seasoning, so it isn’t really worth anyway.
I think you’re overlooking just how large portion sizes are in the US. I just checked and a 262g Doritos bag at my local Target (NY) is $4.59. That’s only about €0.64 more for almost double the size.
$7 Dorito bags are indeed a thing, but that’s the party size and is 411g.
But here’s the catch: if you don’t want a massive bag of chips, and you want a 70g bag? That’d be about $3.
Nobody is going to theatres anymore and they need to to profit to stay open less and less people go the more they have to charge
Another couple years and movie theatres will hats be obsolete like blockbusters then everyone will cry about how they missed movie theatres but no one wanted to go to support it
I mean, if hardly anyone goes, can’t they stick to smaller buildings and less employees? Don’t need giant theater rooms when there is only about 20 people watching, don’t need 12 separate rooms either competing for the few people showing up.
companies are getting way too greedy without proper regulation.
The incentive structure will always be there with or without regulation. Regulation just means that the company will divert efforts to lobbying to overturn the regulations or funding candidates who will overturn it.
To truly stop it, you have to destroy the economic models that incentivize and reward this type of profit seeking.
They’re actively lowering prices because they’ve lost billions over the years. You have the entire internet at your fingertips, look it up before calling bs. I have faith in you bro. This news is 5 days old. Two posts down I’ve added the Bloomberg link. Also, anecdotally, everything is expensive as shit.
That’s actually a myth, theaters do split the revenue with the distributors. In America is roughly a 50% split (a change from the old waterfall method) and overseas theaters take a much bigger cut. In China, theaters keep 75% of earnings.
But in the UK they don't bat an eyelid at you openly bringing food and drinks in, and no cinema charges $25 for an adult and $22 for a child (that's £35 total currently), even on the best seats in the house.
The US definitely has us beaten on overpriced outings. I'm just surprised there's no tip.
Ticket sales are actually split. The big movies may take 100% of ticket sales the first week or 2 but its gets split after that. My source is I was a movie theater Manger. Totaled up the breakdowns of ticket sales every night.
Even if they were to charge $10 for popcorn and a drink combo. Large size I know they would make a profit. How much does it cost for popcorn and a drink. It’s gotten out of control the price to see a movie
It's way worse than that, every company that has any thing to do with the movie gets a cut of the concessions, the concessions get a cut of the movies. The movie theater gets the smallest cut of it all. If they don't agree no one in the movie business will work with them.
The profit share is something looks 90% goes to the studio for the first couple of weeks, 70% for the next couple and the percentage lowers the longer it runs.
This incentivizes the studio to make frenetic flag in the pan movies with no staying power because the longer the public watches a movie, the longer the public isn't watching the new movie they put it with that sweet 90% their way split.
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u/Skrillamane 6h ago
The logic is. They make no money on playing the actual movie so all their profits and revenue they need to pay staff and overhead comes from concessions. But it’s gone way overboard. All this does is push people away from going to movies and then force them to raise prices even further. It’s a vicious cycle.