Potato Chip Prices

Is $6 for a bag of potato chips enough?

Kieran Ryan
August 01, 2024

Good morning, Nerders. It’s Thursday, August 1st. In today’s newsletter, we cover:

Is $6 for a bag of potato chips enough
Which fast food brands earn the most per restaurant
Should Harvard get huge property tax exemptions

TODAY’S STORY

After three consecutive years of price increases, potato chip brands are starting to see pushback from consumers.

Last month, PepsiCo reported a 0.5% revenue decrease in its Frito-Lay snack business due to a 4% volume drop compared to the same period last year.

With average potato chip prices above $6, why didn’t it happen sooner?

Analysts say this was in part due to the 25% increase in the food stamps program from 2021. One report found that in 2023, 42.1 million Americans were enrolled in the food stamp program, and bag snacks were the fourth most purchased item category, only behind soft drinks, fluid drinks, and milk.

PepsiCo plans to cut prices in particular parts of its snack portfolio, where consumers seek more value to keep buying.

DATA BYTES

Average unit volume (AUV), which is the average sales for each location, is a key metric that highlights a chain’s overall efficiency
Besides the excellent food, Chick-fil-A improves its best-in-class AUV through an upstream drive-through ordering system and strict controls over restaurant location selection

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#SHORTS

Should Harvard get huge property tax exemptions?

@boringbusinesskieran
Should Harvard get huge property tax exemptions? // Make sure to follow me to keep up with the latest business stories and trends #busines... See more

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Thanks for reading,
Kieran & Justin Ryan