Quotulatiousness

October 16, 2018

Fast food outlets cluster in poorer areas – because they’re low-margin businesses

Filed under: Business, Food, Health — Tags: , , , — Nicholas @ 03:00

Tim Worstall debunks the “fast food restaurants are preying on the poor” myth:

Contrary to the musings of Rod Liddle in the Sunday Times there is a cause and effect going on over the placings of fast food restaurants or outlets in British towns. The provision of burnt chicken and maybemeatburgers to the hoi polloi is a hugely competitive business. This means that it is also low margin. So, where do you put the places that are in a low margin line of business?

[…] this is about clustering of those nosh joints. Why are they in the poor areas? Well, for the same reason the poor are in the poor areas. They’re cheap. This being rather the defining point about poor people, they look for cheap places to live. The two are therefore synonymous, poor and cheap. And what is it we’ve just said about nosh? That it’s a low margin business. Therefore purveyors of the deep fried and battered saveloy – that joy of the ages – are going to be clustered in the poor part of town where they can afford the rents.

And that’s our cause and effect. Some poor people are poor because they’re, or have been, ill. They’re in the cheap part of town because they’re poor. Fried gut shops are in poor areas because they don’t make much money therefore they’re in the poor part of town. Absolutely any analysis of the phenomenon which doesn’t account for this is wrong. And no analysis done by anyone does take account of it – therefore all current analyses of the point are indeed wrong.

There are also other factors to consider, including the fact that poor people are less likely to have the ability or facilities to prepare their own meals (or the habit of cooking for themselves), so the easy availability of high-calorie fast food or snacks is rather important to them. When you’re hungry and don’t have a fridge or freezer full of food at home, a burger or fried chicken has a much stronger appeal than it does to more wealthy folks with well-stocked pantries. If you’ve been raised on high-fat/high-salt foods, the “healthier” alternatives may not appeal, as they also are less flavourful than their fast food options.

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