Prison Call Caps? Inmates Pay More Elsewhere

Good morning, Nerders. It’s Thursday, September 5th. In today’s newsletter, we cover:

• Prison Tablets — Private companies distribute tablets as the FCC imposes limits on how much they can charge inmates for phone calls

• New Restaurant Openings — Overall restaurant growth has slowed, but dessert concepts are making a comeback

• What’s Wrong With Starbucks? — And a look at what’s fixable in the short-term at the coffee giant

TODAY’S STORY

American businesses have been known to adapt quickly, especially in the face of regulation.

Just look at what’s happening with prison phone calls. 

Making a 15-minute phone call from a large jail used to cost more than $11. Why so expensive? Lack of competition. Two companies, ViaPath and Securus, facilitate most prison calls. Some jails also allegedly negotiated kickbacks with the aforementioned phone providers, which means they get a share of the revenue in exchange for giving them the contract.

In July, the Federal Communications Commission (FCC) voted to cap 15-minute phone call prices in prison at $1.50. However, as the FCC’s new rules squeeze ViaPath and Securus financially on phone calls, they are now distributing tablets to inmates filled with premium content at steep prices to make that revenue back:

• $25.00 for a movie rental

• $2.50 for a song

American capitalism knows no bounds.

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DATA BYTES

• New restaurant growth is down 4% from May 2023 - April 2024 compared to the same period the year before

• Sweet shops experienced notable growth across several categories, while higher-end dining concepts saw a decline in new business openings

#SHORTS

What’s Wrong With Starbucks?

@boringbusinesskieran

What’s Wrong With Starbucks? ☕️ // Make sure to follow me to keep up with the latest business stories and trends #business #starbucks

Watch on: TikTok, YouTube, Instagram

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To read the web version of previous stories, click here

If you have any comments or feedback, just respond to this email.

Thanks for reading,
Kieran & Justin Ryan