Today, Explained Excuseflation
5 snips
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.
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Excuseflation
- Traditional inflation drivers include excessive money supply and supply chain disruptions.
- A new theory suggests corporations exploit inflation by raising prices beyond increased costs.
Wingstop's Wing Prices
- Wingstop increased chicken wing prices, citing pandemic-related disruptions.
- Despite wholesale prices dropping, Wingstop maintains high prices, prioritizing profit margins.
The Baker's Trick
- A Chicago baker admits to using newsworthy events as cover for price increases.
- This tactic minimizes customer complaints while maximizing profits.