They have to deal with less sales and or storing excess inventory.
Let's say you have some bruised bananas. You either have to keep them on the shelf till they rot (less space for sellable product) or donate them and then people won't buy as many bananas, so you need to raise the price.
Unfortunately, there is an issue with food pantries where people who are not in need use them because free food. People can be shameless. It is a minority but still too common and doesn't come with the stigma it deserves in some places. In Seattle, I've even heard a few anecdotes of people trying to resell food from the food pantries.
This behavior does impact prices in the normal market at the margin, particularly if it becomes normalized.
Lowering the price doesnt solve the problems of lost revenue and higher costs.
Most goods are priced such that you cant make more money on increased volume by lowering the cost.
Because it costs money to store and distribute.
They have to deal with less sales and or storing excess inventory.
Let's say you have some bruised bananas. You either have to keep them on the shelf till they rot (less space for sellable product) or donate them and then people won't buy as many bananas, so you need to raise the price.
People eating donated bananas are not buying bananas if there are none available for free. They are just not eating bananas.
Unfortunately, there is an issue with food pantries where people who are not in need use them because free food. People can be shameless. It is a minority but still too common and doesn't come with the stigma it deserves in some places. In Seattle, I've even heard a few anecdotes of people trying to resell food from the food pantries.
This behavior does impact prices in the normal market at the margin, particularly if it becomes normalized.
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Says who? Would you prefer free bananas or paying?
Supermarkets and stores throwing away edible food is pure waste and fundamentally immoral when people are going hungry.
Why? the two are generally unrelated. Lack of food isnt the bottleneck, there is no shortage. It is usually a host of complex problems.
Is throwing away water in a rainforest immoral when there are thristy people in a desert? The problem is connecting the two.
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Or.. lower the price?
Lowering the price doesnt solve the problems of lost revenue and higher costs. Most goods are priced such that you cant make more money on increased volume by lowering the cost.
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