this post was submitted on 02 Dec 2023
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[–] SheeEttin@lemmy.world 41 points 9 months ago (2 children)

Yes, it's surprising when a loss leader leads to losses. For example, Olive Garden and their soup, salad, and bread sticks are probably loss leaders because of how cheap they are, but they make up that little loss with much better margins on entrees (and, I assume, drinks).

[–] _number8_@lemmy.world 34 points 9 months ago (3 children)

i hate how the term 'loss leader' is bandied about like i'm meant to feel sorry for them so generously losing money on something when at the end of the night it's obviously one transaction for everything with a healthy amount of profits baked in

[–] zigmus64@lemmy.world 25 points 9 months ago (1 children)

What else should it be called? I don’t think there’s some moral responsibility placed upon the patron to make up for the loss, even with that name. It’s a gamble for the business that is usually thought out and is intended to lead to an increase in profits overall due to margins baked into items that aren’t on promo.

Sure, it’s considered poor taste to come to a restaurant solely for the free bread and some water and then leave, but it’s completely fair game to take advantage of a loss leading promotion like “endless shrimp” or Costco’s $1.75 for a hot dog and soda. The loss leader gets you in the door. They have other strategies to make that loss worth their while. If you walk in and pound more shrimp than Red Lobster can cover with the margins on the rest of your ticket, that’s their fault not yours… the house lost that bet.

[–] Remmock@kbin.social 10 points 9 months ago (1 children)

$1.50, and the CEO will kill you if you try to raise it.

[–] shasta@lemm.ee 1 points 9 months ago

I heard they have monthly death matches in the garden section after midnight

[–] FutileRecipe@lemmy.world 9 points 9 months ago

like i'm meant to feel sorry for them so generously losing money on something

But think of the shareholders and CEO. Won't someone please think of the shareholders and CEO?!

[–] TheOctonaut@mander.xyz -2 points 9 months ago (1 children)

It's not meant to make you feel sorry for them and in fact it's an illegal tactic in many places

[–] nous@programming.dev 5 points 9 months ago (1 children)
[–] labsin@sh.itjust.works 1 points 9 months ago

Belgium. You are not allowed to sell any item at a loss. Fire example Ikea had to increase the prices of its restaurant and a supermarket that did a 3 for 1 promo got in trouble.

[–] FuglyDuck@lemmy.world 12 points 9 months ago (2 children)

Soup might not actually be a loss leader. Their soups are pretty cheap to make in bulk- especially if they’re using left over ingredients that are not quite as fresh.

[–] roguetrick@kbin.social 3 points 9 months ago* (last edited 9 months ago) (1 children)

I'm sure they're fresh, darden(who used to own red lobster) likely doesn't get too granular with it's produce suppliers in the area. They'll make one contract for all their subsidiary restaurants I'm sure.

[–] FuglyDuck@lemmy.world 5 points 9 months ago* (last edited 9 months ago) (2 children)

I doubt red lobster seafood is fresh (lobster are from the tank, the rest not so much). It’s frozen. (They’d have to fly it in special, for most of their locations. Which. Is not cheap.)

Their soups… I dunno 50/50 on them being warmed out of giant bags made in some distribution hub.

Their biscuits are made from a dry mix (probably identical to bisquick)

I was speaking to OG’s soups (which are made fresh- during prep that morning.) are pretty freaking cheap to make- especially since they probably use all the not-quite as fresh ingredients left over from the previous night; and stocks made from bits and pieces that would otherwise be tossed (like chicken carcass or skins/peels from carrots and onions).

[–] FlyingSquid@lemmy.world 3 points 9 months ago (2 children)

Their biscuits are made from a dry mix (probably identical to bisquick)

Where an I obtain massive quantities of this dry mix?

Asking for a friend.

[–] doubletwist@lemmy.world 5 points 9 months ago (1 children)

They sell it at grocery stores. They even have a gluten free version that my wife actually prefers to the regular.

[–] FlyingSquid@lemmy.world 0 points 9 months ago

Of course, then I have to make it myself...

[–] TwentySeven@lemmy.world 4 points 9 months ago (1 children)
[–] FlyingSquid@lemmy.world 1 points 9 months ago (1 children)

Are we talking Bisquick or delicious Red Lobster Cheddar Biscuits here? Because there's a difference.

[–] feminalpanda@lemmings.world 2 points 9 months ago (1 children)
[–] FlyingSquid@lemmy.world 3 points 9 months ago (2 children)

Pack of 12? What do you think I am, an anorexic?

[–] Tlaloc_Temporal@lemmy.ca 3 points 9 months ago (1 children)

That's 12 boxes of mix, which each make 10 biscuits. That's over 3 kilograms of biscuit mix, which makes 120 biscuits, like 10 kilos of biscuits!

[–] FlyingSquid@lemmy.world 5 points 9 months ago

I stand by my previous statement.

[–] feminalpanda@lemmings.world 2 points 9 months ago

Subscribe to weekly delivery lol

[–] roguetrick@kbin.social 2 points 9 months ago* (last edited 9 months ago) (1 children)

That's what I was taking about. I was taking about darden getting fresh produce. They're who own olive garden. They just also used to own red lobster but got rid of it.

[–] FuglyDuck@lemmy.world 2 points 9 months ago

There’s levels of freshness, so to speak.

Soups usually get things that are not-as-fresh because they get simmered all day anyway- no one is gonna notice if the the carrots were getting flacid or if the protein is dried out from being cooked and not served.

They make the soup fresh daily- just in the morning. and they keep it hot so as to get it out quickly. The ingredients they use, though “fresh” are not the freshest in their pantry, if that makes sense. It’s the left over trimmings that get chopped up so as to hide it (this is actually a good thing. It reduces waste.)

[–] SheeEttin@lemmy.world 1 points 9 months ago

Yeah, loss leader probably isn't the right term for those.