Thursday, May 6, 2010

Saving labor costs in Germany

The new kid on the business block in Germany is self-service bakeries. Unlike traditional bakeries, where a staff person assembles the desired baked goods for each customer, here the customer simply picks out the desired baked goods and then takes them to a cashier. The result, lower prices, 30 to 40 percent lower according to the one company, due to a smaller staff. Of course, there the cost is that some customers may misbehave and handle the food not with the tongs provided but with their hands. The main chains operate with a franchise model; here are the (English language) websites for two of them: back factory and backWERK (which roughly translates as "bakery factory" as well).

Should I note that labor costs are pretty high in Germany?

Hat tip: Michael Lechner

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