Quotulatiousness

August 21, 2014

Missing the Target, badly

Filed under: Business, Cancon, USA — Tags: — Nicholas Russon @ 08:05

I’d heard lots of good things about the Target chain before they came north to Canada (James Lileks, for example, should be getting a regular cheque from the firm for his regular name-check of the local Target store in his writing). When a new Target store opened in Whitby, Elizabeth and I visited shortly after the doors opened. To say it was disappointing is an understatement. We expected to find a new, clean, fully stocked store with different brands and lower prices. What we found was a new, clean store with exactly the same stuff we’d seen before at pretty much the same prices. In other words, there was literally no reason to come back … and we haven’t been back.

Jason Kirby says that our experience was pretty much what everyone else experienced:

Target Canada is an unmitigated disaster. On that point, everyone, from its customers to investors to the company’s executives, can agree. In reporting its second-quarter results this morning, Target revealed its Canadian operations lost another US$200 million, while same-store sales — a gauge of performance that measures only those locations that have been open for at least a year — fell 11.4 per cent from the same period in 2013.

[...]

In a conference call with Canadian media Wednesday, Target chief financial officer John Mulligan declared: “We bit off way too much, too early. In retrospect, (we would) probably open five to 10 stores last year — refine the operations, refine the supply chain, the technology, get our store teams trained. But again, that’s all hindsight, we are where are right now and we’re focused on moving forward to fix this for our guests.”

[...]

It took Target from early 2011, when it announced the Zellers deal, to March 2013 before it opened its doors and could ring up its first sale. To date, Target has racked up $1.8 billion in losses from its Canadian operations. Here a good breakdown of the losses.

In Wal-Mart’s fiscal 1995 annual report, the retailer said its operating, selling and general and administrative expenses, as a percentage of sales, had risen just 0.2 per cent and 0.3 per cent in each of the previous two years as a result of the Canadian acquisition and launch. By Wal-Mart’s second year in Canada it had already generated an operating profit, having doubled sales per square foot since taking over from Woolco. By year two it boasted a 40 per cent share of the market.

It’s taken three years for Target to admit just how flawed the Canadian expansion has been. An atrocious inventory management system left shelves empty, while Canadians were completely turned off by Target Canada’s decidedly un-Target-like prices on goods.

August 20, 2014

New report calls for Ontario to break up the LCBO

Filed under: Business, Cancon, Economics, Wine — Tags: , , , , , — Nicholas Russon @ 13:33

In the Toronto Star, Richard Brennan reports on a new study by the C.D. Howe Institute calling for the province to join the modern era:

The “quasi-monopoly” LCBO and The Beer Store have hosed Ontario consumers long enough, a C.D. Howe Institute report says.

The right-wing think tank said the Ontario government should strip them both of their almost exclusive right to sell beer, wine and spirits, suggesting the report proves that opening up to alcohol sales to competition will mean lower prices.

“The lack of competition in Ontario’s system for alcoholic beverage retailing causes higher prices for consumers and foregone government revenue,” states the 30-page report, Uncorking a Strange Brew: The Need for More Competition in Ontario’s Alcoholic Beverage Retailing System, to be released publicly Wednesday.

The report includes tables comparing Ontario beer prices to other provinces with greater private sector involvement, particularly with Quebec, where a case of 24 domestic beers can be as much as $10 cheaper and even more for imported brands.

Since 1927, when the Liquor Control Act was passed, the Liquor Control Board of Ontario and the privately owned Brewers Warehousing Company Limited have had a stranglehold on alcohol sale in the province.

“The Beer Store’s quasi-monopoly of beer retailing is … an anachronism,” the report says, referring to the foreign-owned private retailer that is protected by provincial legislation.

August 18, 2014

Worstall confirms that “the UK would lose 3 million jobs in the year it left the European Union”

Filed under: Britain, Business, Economics, Europe — Tags: , , — Nicholas Russon @ 09:15

There you go … proof positive that the UK cannot possibly, under any circumstances, leave the European Union. Except for the fact that the UK would lose 3 million jobs in the year even if it stayed with the EU, because that’s how many jobs it normally loses in a year:

UK Would Not Lose 3 Million Jobs If It Left The European Union

Well, of course, the UK would lose 3 million jobs in the year it left the European Union because the UK loses 3 million jobs each and every year. Roughly 10% of all jobs are destroyed in a year and the economy, generally, tends to create 3 million jobs a year as well. But that’s not the point at contention here which is the oft repeated claim that because we left the EU then therefore the UK economy would suddenly be bereft of 3 million jobs, that 10% of the workforce. And sadly this claim is a common one and it just goes to show that there’s lies, damned lies and then there’s politics.

The way we’re supposed to understand the contention is that there’s three million who make their living making things that are then exported to our partners in the European Union. And we’re then to make the leap to the idea that if we did leave the EU then absolutely none of those jobs would exist: leaving the EU would be the same as never exporting another thing to the EU. This is of course entirely nonsense as any even random reading of our mutual histories would indicate: what became the UK has been exporting to the Continent ever since there’s actually been the technology to facilitate trade. Further too: there have been finds in shipwrecks in the Eastern Mediterranean of Cornish tin dating from 1,000 BC, so it’s not just bloodthirsty and drunken louts that we’ve been exporting all these years.

August 15, 2014

QotD: Mobile phone companies

Filed under: Business, Quotations — Tags: , , — Nicholas Russon @ 00:01

I recently cancelled a contract with a different provider after some gizmo broke. The company first told me the whole thing was my problem, then at the last moment offered me hundreds of pounds to stay. When your phone company starts using the playbook of an emotionally abusive spouse, this is not a market in good working order.

Tim Harford, “Casinos’ worrying knack for consumer manipulation: The spread of machine gambling offers a portent of other economic developments”, TimHarford.com, 2014-01-07

August 14, 2014

The decline of the British pub won’t be stopped by more rules and regulations

Filed under: Britain, Business — Tags: , , , — Nicholas Russon @ 10:01

In sp!ked, Rossa Minogue agrees with the Campaign for Real Ale that the British pub as a fixture of daily life is in rapid decline, but warns that CAMRA’s proposed remedy will not turn things around:

Britain’s pubs are in peril. In 1982, there were almost 68,000 pubs in the UK; today there are fewer than 55,000. They continue to close at a rate of 31 a week.

Pubs in the suburbs are said to be worst affected, with three per cent of all suburban pubs having closed in the past six months alone. A report by the Campaign for Real Ale (CAMRA) blames the closures on lax planning regulations that allow pubs to be bought and converted into other kinds of businesses without having to seek permission from the local council. CAMRA’s answer is to call for more planning regulations that would make it difficult to convert your favourite boozer into a Tesco Metro. Publicans have blamed cheap supermarket booze for eating into their revenues and have backed calls for minimum pricing to make drinking at home less attractive. There are no doubt many other factors at work. The ubiquity of mobile phones, for one, makes it easier to arrange a meeting with a friend at short notice, which means the idea of being the ‘regular’ who pops into a ‘local’ unannounced in the hope of bumping into someone one knows is becoming a thing of the past.

Further regulation, however, is not the answer. In fact, as demonstrated by their enthusiastic support for the smoking ban, CAMRA has failed to see that regulations are one of the main things that are killing pubs. Stricter planning laws would do little to address the underlying reasons why pubs are closing. After all, if pubs were drawing the crowds they needed to be viable, why would they be selling up in the first place? Rising rents have been cited as a cause, but the businesses lining up to take over pub premises don’t seem to have a problem paying them.

Pub culture is under threat, but not by greedy property developers desperate to turn every suburban highstreet into a row of Costa Coffees. Rather, the threat comes from the degradation of public life, a process nudged along by a state that disapproves of our habits.

Ubersplaining

Filed under: Business, Humour — Tags: , — Nicholas Russon @ 08:46

James Lileks on the mindbending phenomenon that is Uber being supported (and even loved) by evil right-wingnuts:

Many people on the right have embraced Uber, the company that lets you call a ride from your smartphone instead of standing on the corner with your hand up looking like a statue of Lenin leading the proletariat to the Future, or maybe to that tapas place downtown. This confuses people who regard conservatives as dumb apes who poke Shiny New Things with a stick and screech in alarm. How can they support Uber? It’s a Cool Thing, and they’re all middle-aged dorks in polyester plaid shorts and black socks with sandals who like to “get down” to bands that sing about pickup trucks, or they’re pale evil men who wear three-piece suits to bed and drift off to sleep fantasizing that they’re slapping the birth-control pills out of the hands of poor women. Uber is good, Uber is an app, for heaven’s sake — how can these cretins possibly be on its side? It’s like finding that all the kale in the country is fertilized by Koch products.

[...]

As for Uber itself, well, let’s take a look at the wonderful world of cars-for-hire. When I lived in D.C. in the 90s, I took a lot of cabs. Now and then you’d get a spotless ride with a courteous older driver who knew every street and alley. When I say “now and then” it was in the sense of “now and then, there’s a presidential election.”

For the most part, the cabs had seats that felt like the thin battered beds of a hot-sheet motel and a sweat-and-barf perma-funk that made you roll down the windows in January. The fare wasn’t set by distance or time, but by zones, which encouraged the drivers to drive fast. While this made for speedy trips, and the not-unpleasant sensation of feeling your cheeks ripple with G-forces as he shot down the Dupont Circle tunnel like someone testing a rocket car on the Salt Flats of Utah, the occasional moments of weightlessness when you hit a bump reminded you that you were doing 50 mph in a car whose shock absorbers didn’t, and whose brakes probably wouldn’t.

When I moved back to Minneapolis I had no occasion to take the cab, except for trips back from the airport. The cars weren’t exactly new; when you looked at the fleet idling in the bays, it made you think, “this is what Havana would look like if Castro took over in 1982.”

August 6, 2014

Atlas Shrugged was not an instruction manual”

Filed under: Business, Economics, Government, USA — Tags: , , — Nicholas Russon @ 08:34

Oh, my. A few corporations are using the “corporate inversion” tactic to get out from underneath punitive taxes and the reaction is to talk about making it harder to escape? Tamara K. explains why this is breathtakingly dumb:

Dude, one of the complaints that nuanced cosmopolitan liberals have with Ayn Rand is that her villains are cartoonish caricatures, and here you go popping out an editorial that could have been written by Wesley Mouch. Tone-deafness on this scale is positively breathtaking. Atlas Shrugged was not an instruction manual, you knob.

I suspect more corporations have been considering the pro and con to corporate inversion recently … and the hysterical reaction to the few that have already taken place may trigger a rush to the exits. Nice work, guys!

August 3, 2014

NLRB decision would “stick a fork in the franchise model”

Filed under: Business, Economics, USA — Tags: , — Nicholas Russon @ 10:08

In Forbes, Tim Worstall explains why the recent decision by the US government’s National Labour Relations Board could destroy the franchising business model widely used by fast food chains:

The National Labor Relations Board (NLRB) made a very strange decision last week to rule that McDonald’s the corporation, was a joint employer of the staff in the franchised restaurants. It was, of course, at the urging of those labour activists who would like to union organise in the sector. Dealing with one national company is obviously going to be easier than dealing with thousands of independent business owners. There’s a number of problems with this decision ranging from the way that it overturns what has long thought to be settled law, to it obviating already signed contracts but perhaps the greatest problem is that it calls into question the entire validity of the franchise system.

[...]

The franchisor though gets paid a percentage of pure sales: what the labour costs at the franchises is is no skin off their nose at all. So they’ll not control it. The only major input that the franchisee can control in order to determine profitability would now become, at best, a join venture and we’ve different incentives for each side of the bargain. That’s just not going to work well. I don’t think that Pudzer is being alarmist in stating that this ruling would stick a fork into the franchise model as a whole. You simply can’t have such a system where the franchisees don’t control any of their inputs.

Of course, it’s still open to someone to argue that the franchise system shouldn’t actually exist, that it would be a good thing if everyone were either a truly independent organisation or part of a large and centrally managed group. But if that is the argument that’s being made, or will be made, then it’s a large enough change that it really needs to happen through political means, not administrative law. That means that if Congress wants to change the rules in this manner then that’s up to Congress. But it really shouldn’t be done by the decision of an administrative agency.

A promise of stability for the Vikings

Filed under: Business, Football — Tags: , , — Nicholas Russon @ 08:49

In the Star Tribune, Jim Souhan looks back at the Minnesota Vikings long, tattered history of leadership struggles, coups d’etat, backstabbings, legal battles, and instability that would embarrass a banana republic in the 1930s:

In the beginning, there was Norm Van Brocklin, and he was angry. So angry that he would scream at Fran Tarkenton when Tarkenton scrambled. So angry that Van Brocklin unwittingly became the Vikings’ cussing precursor to their current coach, Mike “Bleep” Zimmer.

That Norm couldn’t get along with a future Hall of Fame quarterback foretold decades of Vikings history, in which owners, coaches, star players and team executives would scheme to seize influence within the organization.

Today, the Vikings appear to have all of their key decisionmakers on the same page and, for once, that page is not a legal brief.

There have been good times, and calm times, in Vikings history, but rarely were the Vikings good and calm at the same time when anyone other than Bud Grant was in charge.

Grant employed problem players and his team lost big games, but with ol’ Steely Eyes in charge, the Vikings took on the appearance of a lake unruffled by whitecaps.

Since Grant retired, the Vikings have not been the same. They have not returned to a Super Bowl. They have not enjoyed a multiple-season stretch of anything that could be labeled as tranquil.

Les Steckel replaced Grant, and quickly got himself fired by mistaking the NFL for a special forces training center. Grant returned for one season, but finished 7-9. Grant’s longtime protégé, Jerry Burns, another coach who could swear with creativity and stamina, took over and advanced to the brink of a Super Bowl, but retired before new executive Roger Headrick could push him out.

Headrick had replaced Mike Lynn, whose time as the team’s top football executive included feuds between him and the ownership group known as the Gang of 10, members of which spent more time suing one another than watching football. Headrick, a corporate type who mistakenly showed up for a practice in coaching shorts and wearing a whistle, replaced Burns with Denny Green.

Green won right away and for a long time, but by the end of his first season he was the subject of reports about numerous non-football allegations, and soon he would be writing a book threatening to sue for ownership of the team.

Here’s hoping that the Mike Zimmer years will be as calm as the Bud Grant years… oh, and at least as successful.

July 28, 2014

US government department to be replaced by Google

Filed under: Business, Government, Technology — Tags: , , — Nicholas Russon @ 09:18

The National Journal‘s Alex Brown talks about a federal government department facing the end of the line thanks to search engines like Google:

A little-known branch of the Commerce Department faces elimination, thanks to advances in technology and a snarkily named bill from Sens. Tom Coburn and Claire McCaskill.

The National Technical Information Service compiles federal reports, serving as a clearinghouse for the government’s scientific, technical, and business documents. The NTIS then sells copies of the documents to other agencies and the public upon request. It’s done so since 1950.

But Coburn and McCaskill say it’s hard to justify 150 employees and $66 million in taxpayer dollars when almost all of those documents are now available online for free.

Enter the Let Me Google That for You Act.

“Our goal is to eliminate you as an agency,” the famously grumpy Coburn told NTIS Director Bruce Borzino at a Wednesday hearing. Pulling no punches, Coburn suggested that any NTIS documents not already available to the public be put “in a small closet in the Department of Commerce.”

H/T to Jim Geraghty for the link. He assures us that despite any similarities to situations portrayed in his recent political novel The Weed Agency, he didn’t make this one up.

July 23, 2014

The partisan reasons for institutionalized crony capitalism

Filed under: Business, Government, USA — Tags: , , , , — Nicholas Russon @ 07:38

There’s capitalism and there’s crony capitalism: they share a name, but they’re very different creatures. Crony capitalism thrives when government controls a large share of the economy, because then the politicians and bureaucrats have more goodies to share with their “capitalist” cronies. The bigger the slice of the pie controlled by political leaders and unelected regulators, the better the situation for the favoured companies — and that usually means the biggest of the big corporations. In the US government, one of the best examples of institutionalized crony capitalism is the Export-Import Bank (Ex-Im): it exists to allow big corporations like Boeing to sell their products to foreign buyers at highly favourable interest rates, with the taxpayer picking up the risks and the American corporation creaming off the excess profits.

This system works so well — for the businesses being subsidized and the politicians who control the process — that it’s difficult to see it being stopped any time soon. Ex-Im’s enabling legislation is due to be re-authorized later this summer, so this is one of those brief chances to stop it. The problem is that it isn’t just Republicans who support it (because “what’s good for General Motors Boeing is good for America”), but also Democrats … sometimes the very same Democrats who make a lot of speeches about the evils of Wall Street. Jonah Goldberg explains why:

The Left’s anti-big-business populism is very different. It doesn’t want to cut the government’s incestuous relationship with big business; it simply wants to bring business to heel. Big business should do what Washington tells it to do, and when it does, it will get treats. When it doesn’t, it will get the newspaper to the nose. But big business will never be let off its leash, if the Left has its way.

“[Senator Elizabeth] Warren doesn’t have a problem with big banks or corporations,” the Federalist’s David Harsanyi writes. “She has a problem with banks and corporations that make profits in ways that she finds morally intolerable. She is an opponent of dynamism, not cronyism.”

This has always been the central idea behind progressive economics. Bureaucrats and other planners need — or at least want — ever more power to decide how economic resources are arranged and allocated. That doesn’t mean they’re socialists, it just means that corporations need to follow their lead. Indeed, good “corporate citizenship” means acquiescing to the priorities of progressive state planners and whatever their latest idea of “public–private partnerships” might be. The one constant in such partnerships is that business is always the junior partner.

This was the vision behind Woodrow Wilson’s “war socialism,” FDR’s New Deal, LBJ’s Great Society, Bill Clinton’s “Third Way,” and virtually all of Barack Obama’s economic policies. What is Obamacare but an attempt to turn the entire health-care industry into Washington’s well-fed lapdog?

What’s amazing is that people are still capable of shock when it turns out that a policy of treating businesses like dependent lapdogs yields businesses that try to have the government’s lap all to themselves.

July 19, 2014

UPS capitulates, but FedEx will fight

Filed under: Business, Law, USA — Tags: , — Nicholas Russon @ 10:21

Scott Greenfield on an interesting attempt by the US government to get private delivery firms to act as an unpaid arm of law enforcement:

    In the future, everyone will be a cop for 15 minutes.
    – Apologies to Andy Warhol

And if you don’t fulfill your duty, the government will indict you. United Parcel Service decided it was a better business move to pay off the government, at a price tag of $40 million. Federal Express refused. The government has now indicted FedEx for its refusal to capitulate.

[...]

The indictment relates to internet “pharmacies,” that ship drugs to people who may have no prescription and without having been treated by a physician. Not all internet pharmacies are evil, and not all prescriptions filled are wrongful, but the government nonetheless demands that delivery companies be not only its eyes and ears, but its arms and legs, in this battle of its war against crime. If only corporate America would faithfully serve its master, it would make law enforcement’s job so much easier.

The indictment is the typical slinging together of vague back-end anecdotes which, when the salient details are studiously omitted, create the disturbing appearance of complicity, if not exactly wrong-doing. After all, shouldn’t a delivery company know that it’s being used by criminals? Because it’s their responsibility to spy on packages, or see into the hearts of recipients, or know each back office deal of their customers?

Ironically, it’s not that FedEx wants to deliver contraband, but that the government refused to cooperate.

H/T to Amy Alkon for the link.

July 15, 2014

The economic side of Net Neutrality

Filed under: Business, Economics, Technology — Tags: , , , , — Nicholas Russon @ 07:41

In Forbes, Tim Worstall ignores the slogans to follow the money in the Net Neutrality argument:

The FCC is having a busy time of it as their cogitations into the rules about net neutrality become the second most commented upon in the organisation’s history (second only to Janet Jackson’s nip-slip which gives us a good idea of the priorities of the citizenry). The various internet content giants, the Googles, Facebooks and so on of this world, are arguing very loudly that strict net neutrality should be the standard. We could, of course attribute this to all in those organisations being fully up with the hippy dippy idea that information just wants to be free. Apart from the obvious point that Zuckerberg, for one, is a little too young to have absorbed that along with the patchouli oil we’d probably do better to examine the underlying economics of what’s going on to work out why people are taking the positions they are.

Boiling “net neutrality” down to its essence the argument is about whether the people who own the connections to the customer, the broadband and mobile airtime providers, can treat different internet traffic differently. Should we force them to be neutral (thus the “neutrality” part) and treat all traffic exactly the same? Or should they be allowed to speed up some traffic, slow down other, in order to prioritise certain services over others?

We can (and many do) argue that we the consumers are paying for this bandwidth so it’s up to us to decide and we might well decide that they cannot. Others might (and they do) argue that certain services require very much more of that bandwidth than others, further, require a much higher level of service, and it would be economically efficient to charge for that greater volume and quality. For example, none of us would mind all that much if there was a random second or two delay in the arrival of a gmail message but we’d be very annoyed if there were random such delays in the arrival of a YouTube packet. Netflix would be almost unusable if streaming were subject to such delays. So it might indeed make sense to prioritise such traffic and slow down other to make room for it.

You can balance these arguments as you wish: there’s not really a “correct” answer to this, it’s a matter of opinion. But why are the content giants all arguing for net neutrality? What’s their reasoning?

As you’d expect, it all comes down to the money. Who pays more for what under a truly “neutral” model and who pays more under other models. The big players want to funnel off as much of the available profit to themselves as possible, while others would prefer the big players reduced to the status of regulated water company: carrying all traffic at the same rate (which then allows the profits to go to other players).

July 14, 2014

When unions took over the public sector

Filed under: Bureaucracy, Business, Economics, Government, USA — Tags: , , , , — Nicholas Russon @ 09:09

Dmitri Melhorn says the union movement is missing an opportunity to be more relevant in the private sector, because public sector unions don’t help poorer workers (because public sector union members are middle class professionals, not working class):

Progressive hostility to [Harris v. Quinn], however, is shortsighted. Harris and decisions like it have the potential to revitalize progressive politics by restoring the relevance and political potency that labor held in the early-to-mid-20th century. The great labor leaders of that era — AFL-CIO President George Meany, President Franklin D. Roosevelt, and the like — agreed with the majority in Harris: it was both impractical and inadvisable to afford public employees compulsory collective bargaining rights.

Roosevelt said that collective bargaining and public workers’ right to strike would be “unthinkable and intolerable.” Meany said it would be “impossible.” In the view of these leaders, civil service laws from the Progressive Era of the 1890s to 1920s had made government jobs good and safe. Labor and progressives, therefore, needed to focus on blue-collar workers’ need to fight collectively for basic safety, dignity and living wages. Through this focus, the United States saw historic gains in the well-being of workers and the country’s middle class.

That labor heyday lasted through the 1950s, but starting in the late 1960s labor lost ground. Public-sector unions grew rapidly, but private-sector unions shrank. By 2012, public-sector workers had union membership rates more than five times higher than rates among private-sector workers.

Essentially, the public-sector unions sucked up all the oxygen. Talented labor organizers opted to work with government workers: their members were relatively prosperous and well connected, so they were easy and lucrative to organize. As explained in Jake Rosenfeld’s book What Unions No Longer Do from earlier this year, this shift to public-sector unions meant that unions no longer fought primarily for the working poor. Instead, much of their muscle was devoted to improving the status of middle-class professionals.

July 12, 2014

Sriracha factory dispute – “THIS PROBLEM NEEDS TO BE TAKEN CARE OF NOW, NOT LATER!!!!!”

Filed under: Bureaucracy, Business, Government, Health, USA — Tags: , , — Nicholas Russon @ 00:03

Sriracha rooster sauceSriracha fans were relieved when the Huy Fong plant in California was allowed to re-open after a farcical ‘elf-and-safety’ shakedown (original story here). Reason‘s Zenon Evans has more on the behind-the-scenes bullshit that triggered the near-national panic among hot sauce consumers:

The public just got some new insight into one of the last year’s spiciest (and fishiest) political kerfuffles: the push by the city council of Irwindale, California to shut down Huy Fong Foods, the makers of Sriracha hot sauce. The tireless freedom-of-information requesters at MuckRock yesterday published internal council documents, revealing theatrically furious communication among the local government officials and a desire to exploit regulations to force the company into submission.

[...]

The newly revealed memos and emails show that some members of government were actually “happy to report the scent of chilies” emanating when production began in 2012, but, a year later Ortiz and Councilman David Fuentes, who also lived near the factory (and also ultimately recused himself from the matter), saw a total shutdown as the first and only appropriate course of action.

“I just received notice that the odor at this place is very strong. We must proceed with SHUT DOWN immediately,” demanded Ortiz in an email, despite the fact that he had previously applauded how much safer that part of town had become since the $80 million business moved in.

Fuentes was even more adamant. “THIS PROBLEM NEEDS TO BE TAKEN CARE OF NOW, NOT LATER!!!!!,” he emailed his fellow council members in October. Notably, he also suggested that “if we need to shut them down for non compliance, then let’s do what we have to do.”

Although it’s not clear exactly what Fuentes meant by “non compliance” or if the council made moves based on his plot, the city did sue Huy Fong and got a judge to order a partial shutdown in November, even though that the judge acknowledged a “lack of credible evidence” regarding the health risk claims. Likewise, California’s health regulators stepped in and changed their own food rules in December as they demanded a 30-day hold on operations, which created fear of a national Sriracha shortage.

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