Strolling through Melbourne today, I called in at Subway in Elizabeth Street for lunch on the go.
I ordered my usual six-inch tuna sub and nearly fell over when I saw the price was just $3.95.
In Kalgoorlie the cost is $5.45. Why the 28 percent difference?
Looking at possible variables, volume is probably higher in Melbourne (but staff can be employed to match turnover).
Food costs are cheaper (and fresher) in Melbourne, but rent is probably much dearer than Kalgoorlie.
Overall, I can’t see any justification for such a big difference in prices. Maybe it’s got more to do with the level of competition?
These articles might be of interest:
The six-inch tuna sub was $4.45 at Melbourne Central, reporting here on Subway pricewatch.
Buisnesses in Kalgoorlie and other remote regional centres have to deal with high freight costs and high wages costs.
That’s true Mervan, but the rent in downtown Melbourne would be just a tad dearer than Kalgoorlie.
tuna is 4.45.
freight theres a 20-30% increase in freight to rural locations plus wages are higher FYI.
$3.95 at Moe in country Victoria.