Friday, March 27, 2009

Pro Logo Reason #301

Food quality on highway 401 used to be inconsistent - at best. But most people who passed through weren't going to establish a long-term relationship of repeat business, so there were limited incentives for any particular company to increase quality given that because of their location they were all already quite profitable. This was remedied when the food concessions were transferred from purely local small business enterprises to brand name corporates like Tim Hortons, Wendy's, and the like.
Hat tip to the book on Contracts by Swan, Reiter, Bala