While it sounds like a win for consumers and a win for the business, it has become a loss for the Chatham community. The Brown's store has closed as they couldn't compete, several restaurant entrepreneurs have reported that they are having difficulty obtaining financing from financial institutions because the financial institutions do not see the community supporting a fast casual restaurant because they all they see is the $.99 deal continue and it is rumored that Whole Foods passed on Chatham because of the $.99 deal and several other issues. So the $1 deal looks good for both business and the consumers but its been bad for community economic development. Sometimes cheaper is not always good. Maybe the Freakonomics team can give us some insight on this dilemma that can be used to stimulate economic development.I need to read Freakonomics so that I can understand what he's talking about. Although he has talked about why Whole Foods isn't coming to Chatham anytime soon. And certainly the amount we'd pay for food and who we buy the food from is just one reason among many. What do you think?
Dispatches from Chicago's south side.
Monday, October 17, 2011
Freakonomics Chatham Style- The Fried Chicken Dilemma
Worlee relates a book Feakonomics to how fried chicken value meals has stymied economic development in Chatham. His conclusions on the negative effect of the price war between at the fried chicken chains (such as Church's) in our community:
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