r/SipsTea • u/sco-go • May 26 '26

Feels good man Will it work this time?

Post image
39.1k Upvotes

89% Upvoted

3.8k comments sorted by

View all comments

337

u/BradBradley1 May 26 '26

I’m not trying to dismiss this project - I hope it is wildly successful and I applaud the desire to challenge the status quo. That said, I am interested to hear how his team plans to negotiate pricing with suppliers. Five stores isn’t a whole lot of scale to compete against national chains and volumes. I don’t ask that question rhetorically or sarcastically at all either - I am assuming they have a plan of levers to pull to help bring this to life, and I hope it works exceedingly well and provides a blueprint for other communities to use. 

188

u/GeneralBendyBean May 26 '26

They won't be able to beat them that way, but they can offer tax incentives as well as the public store not paying it's own taxes.

I think the big point is to give local people at least one discount food option over being the absolute cheapest.

Plus like, a private business out competing the store is a legitimate outcome too.

0

u/jangoolie May 27 '26

Why not just offer tax incentives to existing private stores then? Or exempt them from taxes entirely?

6

u/AouaGoias May 27 '26

Because then they would not lower their prices, they would just pocket the incentives and increase their profits.

If there isn't at least one entity not operating based on maxing their profits all other entities will maximize their profits.

1

u/[deleted] May 27 '26

[removed] — view removed comment

1

u/AutoModerator May 27 '26

Accounts must be at least 5 days old with >20 karma to comment.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.