Lightning Round: Rotisserie chicken and the bottom line
By Frazer Jones
May 17, 2020
This week Costco revealed that it loses as much as $40 million per year in gross margin as a chain by refusing to raise the price of its famous rotiss...
- This week Costco revealed that it loses as much as $40 million per year in gross margin as a chain by refusing to raise the price of its famous rotisserie chicken from $4.99 to $5.99 to keep pace with inflation. For the chain, it’s all worth eating some of its potential bottom line by keeping prices low for consumers to maintain its consumer base. “That’s what we do for a living,” Costco CFO Richard Galanti told analysts. Would you consider trading a portion of profits for consumer satisfaction? Where would you draw the line with your business? ~ Fortune
- Walmart is making some major changes to its animal welfare policies for Walmart and Sam’s Club brands. According to new reports, the retail chain has committed to stringent animal welfare policies including enforcement of the internationally recognized “Five Freedom,” and is asking all of its meat, deli, dairy and egg suppliers to meet these standards as well in order to continue working with Walmart and Sam’s Club brands. ~ Supermarket News
- Have you considered how your compensation as an executive could be used to better the world as a whole? Chobani founder and CEO Hamdi Ulukaya is one executive who has given this a lot of thought. The Greek yogurt mogul has joined the ranks of other high-powered individuals like Warren Buffett and Bill Gates in signing up for The Giving Pledge, hereby committing to donate at least half of his wealth to charity either within his lifetime or in his will. ~ The Columbian