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Try running an IHOP or the like. You’ll be keeping a dollar or two on that $15 entree.

But that $14 went to 50 different suppliers. Your dairy supplier didn't suddenly decide they are worth $5 all by themselves.

Well that’s a distinction without a difference to the IHOP owner.

Incorrect.

Or a gas station.

Their margins are outrageous but only if they can get you to come inside - they're only making a cent or two off each gallon of gas they sell.

Here in Europe, some brands (that I consistently stay away from) like BP have consistently higher prices than rest of the market. We talk about competition of Eni, Shell, Total, Agip etc. Not meaning no-name questionable shops.

I don't think they are that ineffective in manufacturing, renting/buying land, building infrastructure or paying much more. Some locations ask for higher prices just because they don't have any competition in area.

And yes they charge easily 3x for stuff they know you will buy like redbulls, chocolate and so on.

And yet: there are gas stations hundred feet away from each other that have gas prices tens of cents apart.

Which makes sense. They've found the best locations to sell gas from, and also the best places to receive large gas shipments and store enough gas to sell safely

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