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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: reaper who wrote (3822)4/7/2004 1:57:04 PM
From: DOUG H  Read Replies (1) of 116555
 
which is why they formed that off-balance-sheet cheese trading company to begin with (to smooth out the crazy year-to-year variances in cheese costs).

Do you know when this was formed? It is far more likely it was formed (and run by the franchisees)to a. get their own experts in procurement doing the buying. b. pocket, rather than pay the substantial supplier discounts that allow suppliers to keep their high "street price" while giving discounts to bigger buyers. Franchisors negotiate these contracts, TELL the franchisees where to buy, and pocket teh significant supplier discounts.

Depending on when it was formed, this could be the result one would expect. Beyond that, pricing and changes and differences in menu mix could account for the improved COG line.
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