The Economic Impact of Covid 19


#43

I’m a bit confused about an aspect of this, if anyone was willing to instruct me…

How is there loads of food going rotten because restaurants are closed; surely we are eating the same amount as before? Its just moved from food service to retail?

Even allowing for a lower calorific intake, variations in diet and production/delivery snafus, surely there cant be that much excess food?

Am I missing something obvious here?


#44

Most hotels cook far more food than they ever sell, just look at all the brown bins around the back. The lockdown is exposing this waste for all to see. The costs are simply passed to the customers.


#45

Afaik, market forces should dictate the price, so if there is over supply the price should drop.

That was 1 of the problems with the soviet system and their centrally planned economy. They couldn’t discover the correct price of anything.


#46

Market forces do set the demand from the food producers, the catering trade has set the requirements and the producers have obliged.
The issue is that caterers are expected to have the full menu available at all times, if the customer orders Dover sole ten minutes before closing time the restaurant needs to have one available for him. So they always prepare more than what is needed.
It’s not like they expect 100 customers and they cook a variety of meals sufficient for 100 and if you’re at the back of the queue, you get what’s left.
At the end of each sitting, there is a huge amount of unsold food that is simply thrown away, some places let the staff graze it first.

With the lockdown, that overproduction cannot be absorbed by households as people in general will never cook for six when they’re a family of four.


#47

Have you not heard of the Covid Stone? Or the Covid Stone and a Half around some-parts.