Today, Explained
Excuseflation
Jul 6, 2023
Traci Alloway, co-host of Bloomberg's Odd Lots podcast, dives into the concept of 'excuseflation,' where companies use inflation as a cover to hike prices. She illustrates this with Wingstop's pricing strategy, showcasing how firms might exploit rising costs. The discussion also touches on premiumization trends, including the shift toward upscale pet food as owners treat their pets like family. Alloway connects these practices to broader economic inequalities and the instability they may bring as businesses navigate post-pandemic challenges.
25:51
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Quick takeaways
- Companies are using inflation as an excuse to raise prices, impacting consumers negatively.
- Premiumization trend in pricing targets higher-income consumers, leading to potential underserving of lower-income households.
Deep dives
Expensive Prices Due to Excuse Flation
Companies are using disruptions like supply chain issues to raise prices, even when costs decrease. An example includes Wingstop increasing chicken wing prices despite lower wholesale costs.
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