tag:blogger.com,1999:blog-1141932539860553199.post4542712190301514557..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: "Waitrose reports Buckingham cafe owner to OFT"Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1141932539860553199.post-57251191461020896422013-11-19T15:32:53.311+00:002013-11-19T15:32:53.311+00:00TS, it's called loss leader.
But you're n...TS, it's called loss leader.<br /><br />But you're not really paying for the coffee at all, you are largely paying for the sit-down in a pleasant atmosphere. In that sense there is little competition between Waitrose and the coffee shop.<br /><br />e.g. we have a Waitrose near us (doling out free coffees) and a Costa directly opposite, and unless I was really skint (or wanted a coffee to take with me on the Tube), I would rather have a nice sit down outside at Costa for £2.15 rather than sitting on the bench in from of Waitrose.<br /><br />I know it's not rational, but there you go.<br /><br />Kj, it's all about the seating!Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-36575638285842617852013-11-19T13:35:07.539+00:002013-11-19T13:35:07.539+00:00They're hardly losing any money on the coffee....They're hardly losing any money on the coffee. The vast majority of the costs of a cafe are fixed. Rent, staff, equipment, heating, marketing etc. It's generally reckoned that 2-3% of the cup is the coffee.<br /><br />But if you count how many more of those customers will also have a scone with their coffee and how much that is, or that their kid wants an orange juice, and you work that in, Waitrose are probably making more money from those extra customers than if they didn't give away the coffee and the customers didn't come in.Tim Almondhttps://www.blogger.com/profile/13369256383976094670noreply@blogger.com