Results for “food”
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China retailers face food vigilantes

1. Xue Yanfeng has now filed 40 lawsuits against supermarkets and retailers for violating food safety laws.

2. Under Chinese law, it is no longer the case that a victimized customer has to prove personal injury or loss to receive compensation.

3. Xue has found raisins with no nutritional labels, potato chips with proscribed additives, and biscuits with multiple production dates.

4. In the past 18 months, he has been awarded somewhat over $10,000 in compensation, plus there are 18 other settled cases where compensation was not disclosed.

5. Some provincial reports indicate that 80 to 90 percent of food safety complaints are from “specialist” plaintiffs.

China, of course, has had notoriously lax food safety practices in the past.  So might the actions of these individuals be efficiency-enhancing?  But more than 2/3 of the cases are based on labeling mistakes.

The above is from Bloomberg News.

Amazon is buying Whole Foods

Matt Yglesias: “A big city daily newspaper, physical bookstores, a supermarket chain. Bezos’ futuristic vision is all coming together.”

Alex T. tweeted: “I already do 80% of my shopping at Amazon and Whole Foods. I am beginning to get worried.”

Ross Douthat: “What if Bezos intends to turn Whole Foods into a Mormon-style charitable storehouse …”

Me: “Perhaps preserving my favorite brands of Whole Foods dark chocolate is Jeff Bezos’s plan for short-run public charity.”

@JesalTV: Jeff Bezos: “Alexa, buy me something from Whole Foods.” Alexa: “Sure, Jeff. Buying Whole Foods now.” Jeff Bezos: “WHA- ahh go ahead.”

Here is an earlier Conor Sen piece on Amazon acquisition strategy.

And Stratechery on Amazon.

And above all else: “Dow opens down 10 points. Amazon jumps 3% after deal to buy Whole Foods. Walmart slumps 7%, Kroger plunges 16%”

Here are more retail share price declines.

Food consumption now has higher entry barriers than does music consumption

Marco Bresba emails me:

I loved your post on how Food has displaced Music in pop culture (March 29)

I’ve been thinking about the topic for years, and I believe complacency is pertinent.

Musical taste (like one’s taste in wine, food, books, etc.) provides a measure of social currency. It’s a way into a clique you want to join but admittance requires work.

Music no longer provides much of an effort barrier. Mention the most obscure band and I can become an expert in a few hours.

This was not always the case. Rewind to 1985: a classmate mocks me with “I bet you never heard of The Smiths.” He’s right. How do I get up to speed and become cool?

None of my radio stations play the Smiths. One channel teases me with a 3-hour alternative block every Sunday. The cool indie store is a bus ride away. And their inventory is spotty. The good stuff is imported form the UK. A domestic compilation is rumored for next year. Until then, would I be interested in the latest Cure single? They have one copy left. Only $9.99. I pick up the NME instead.

I hit a bunch of used record stores. Every second day. Two weeks later, I find one of the Smiths’ less popular singles. At this rate, I’ll be a fan by the time I graduate high school.

In our age of convenience, food still requires long term planning. At least the stuff foodies value. Will anyone care if I order Massaman Curry on Uber Eats? No. In order to become an elite foodie, I have to leave the house. I must shed my complacency in various ways:

  • I accept a 90 mins line-up to nab a seat at a Celebrity Chef Pop Up.
  • I have to befriend an annoying waiter at a hipster party just to find out how to secretly order raw pork at a suburban joint 45 mins away.
  • I worry I don’t have enough referrals to get invited to the newest alternative supper club.
  • I depend on the cheesemonger that only works on Saturdays to point out the best seasonal stinky varieties.
  • I stay up till midnight that one night Pied de Cochon accepts resos for their Sugar Shack months away.
  • I scold myself for not planning my Italian trip a year in advance –  my bucket list meal at Osteria Francescana now in jeopardy.

In addition to the reasons you mentioned, food obsession will always hold currency because it still requires plenty of legwork. Music just needs an internet connection.

Food has replaced music as culturally central, at least for America’s professional class

That is the topic of my latest Bloomberg column, and here is part of the discussion of food:

Restaurants are increasingly an organizing and revitalizing force in our cities, and eating out has continued to rise as a means of socializing. America’s educated professional class may be out of touch with sports and tired of discussing the weather, and so trading information about new or favorite restaurants, or recipes and ingredients, has become one of the new all-purpose topics of conversation. Food is a relatively gender-neutral topic, and furthermore immigrant newcomers can be immediately proud of what they know and have eaten.

…Music made us get up and dance, or occasionally throw a rock. Food, especially if combined with wine, encourages a state of satiety and repose. Most conversation about food is studiously nonpolitical and removed from controversial social issues. There is a layer of left-wing critique of food corporations, genetic modification and food-associated pollution, but its impact on broader American culture has been marginal. These days, it could be said that food is the opiate of the educated classes. Anecdotally, I observe that the contemporary preoccupation with a particular kind of food fanciness and diversity has penetrated black communities less, and those are also the groups where music might in some cases remain politically important.

Otherwise, the contemporary food world grants diners the ability to cite a multicultural allegiance without controversy. One can mention a taste for Senegalese food, and win credibility for sophistication and worldliness, as well as knowledge of Africa. At the same time, one isn’t pinned down to having to defend any other specific feature of Senegalese culture. Maffa — usually a meat in peanut and tomato sauce — isn’t that controversial or revolutionary as a concept.

The current culinary touchstone is the foodie or TV host who “eats everything,” from pig snouts to worms to scorpions. Cannibalism aside, the list of what has been consumed on television is now so long it’s hard to shock viewers (not only do some insects taste like potato chips, but in some dining circles consuming potato chips is arguably the more rebellious act). The more prosaic truth, however, is that eating everything is not much of a revolution. If anything, historical resonance has been achieved by people who refused to eat certain foods, whether the underlying doctrine was vegetarianism, Jainism, Judaism or Islam.

There is much more of interest, including the take on music, at the link.

Do higher food prices help or hinder poverty reduction?

The answer may surprise you, here is part of an abstract from Derek D. Headey:

In this article World Bank poverty estimates are used to systematically test the relationship between changes in poverty and exogenous changes in real domestic food prices. We uncover indicative evidence that increases in food prices are associated with reductions in poverty, not increases. We empirically explain this result in terms of relatively strong agricultural supply and wage responses to food price increases, and the fact that the majority of the world’s poor still heavily rely on agriculture or agriculture-related activities to earn a living.

Here is the full (gated) article, via the excellent Kevin Lewis.

Is healthy food a luxury for low-income households in the United States?

It seems quite a few of the poor, when they get some extra money, want to keep on buying refined sugar.  Or in other words, it takes quite a bit of income (or is it education?) to “elevate taste.”  Here is the job market paper by Olga Kozlova of Duke University:

This paper explores how the low-income households change the quality of their food basket when they experience a budget increase. I use the variation in the monthly household budget coming from the exogenous variation in the winter temperature that directly affects the heating bills. I show that in response to a higher budget available the expenditure share on healthy food does not increase. I find that households increase the share of expenditure on fruits, but they purchase fruit products with a higher amount of sugar. My findings suggest that there are important trade-offs in policies that subsidize food expenditure because these policies allow low-income households to purchase more of the healthy as well as the unhealthy food products.

Also on the job market, from Northwestern, here is Mara P. Squicciarini, whose job market paper argues that Catholic education held back economic growth in 19th century France.  She also co-edited a book The Economics of Chocolate.

The changing economics of food fraud

Vansteenkiste says: “In former days, we had fake champagne, vodka, Johnnie Walker whisky. What we see now is day-to-day consumer goods, [things like] tomato juice and orange juice. You wouldn’t expect it for a low-priced item like tomato juice — for God’s sake, why would they fake it? The answer is people don’t expect it to be cheated, and the profit is very low, but people drink more tomato juice than champagne.”

Tomato juice is usually adulterated by diluting a famous brand name with a cheaper product. Chocolate, coffee and cookies are also targets, says Vansteenkiste.

That is from an excellent Natalie Whittle feature article at the FT.

Sound makes your food taste different

In a live demonstration conducted in 2006 with the celebrity chef Heston Blumenthal, Spence found that when people were served a scoop of bacon-and-egg ice cream accompanied by the sound of sizzling bacon they described the taste of the ice cream as much more “bacony” than subjects whose consumption was accompanied by the clucking of chickens. This insight—that the appropriate soundtrack can intensify the flavor of a food—inspired Blumenthal’s iconic “Sound of the Sea” dish, for which diners at his restaurant, the Fat Duck, in Bray, are presented with an iPod loaded with a recording of crashing waves and screeching gulls to listen to while enjoying an artfully presented plate of seafood. The effect could be used similarly, Spence said, to design soundtracks that replace some of the lost flavor of food for the elderly.

That is from Nicola Twilley in The New Yorker, interesting throughout.

Where to park your food truck?

Here is Eliot Abrams, doctoral student at the University of Chicago who is working on modeling food truck behavior:

Modeling food truck parking locations is complex, as there are around 70 active food trucks parking at more than 30 locations in Chicago. Thankfully, there is plenty of data because food trucks need to advertise their locations. Since 2011, Andrew Violette, who runs ChicagoFoodTruckFinder.com, has been tracking the city’s food trucks based on their Twitter feeds. I pulled 34,328 parking records from Violette’s website and created a simulation of how food trucks park.

This exercise translates the observed food truck movements into information on the relative number of customers a truck serves at each location on a given day. The number of customers is a function of many variables, such as the day of the week and the location chosen by the truck. I focus on estimating how customer traffic is impacted by the number and diversity of other trucks parking at the location and by the past frequency with which the truck has parked at the particular location. Just like Hotelling’s ice cream vendors, food trucks should (and do) choose their locations in response to these dynamics in order to maximize their profit.

As part of the same symposium, here is, Drew Davis, Booth MBA and most importantly a guy who runs food trucks:

In Wrigleyville, we ended up getting a lot of people out for Sunday strolls, running errands. We’re near a drugstore and a grocery store. By experimenting, we got to the right answer. We don’t want to be a destination in itself. We’d much rather make ourselves part of people’s everyday experience, a part of their lives.

At Booth, there’s always the question: Does the data exist and can I get it?  I could generate data from our truck sales. But you can really only compare results if the day of the week was the same, the spot was the same, and the weather was the same. By the time you’ve made all those cuts in the data, the analysis would be horrendous. I work much better with stories.

Read the whole thing, Chad Syverson opines as well.

Free Market Food Banks

Feeding America, the third largest non-profit in the United States, distributes billions of pounds of food every year. Most of the food comes from large firms like Kraft, ConAgra and Walmart that have a surplus of some item and scarce warehouse space. Feeding America coordinates the supply of surplus food with the demand from food banks across the U.S..

Allocating food is not an easy problem. How do you decide who gets what while taking into account local needs, local tastes, what foods the bank has already, what abilities the banks have to store food on a particular day, transportation costs and so forth. Alex Teytelboym writing at The Week points out:

…Before 2005, Feeding America allocated food centrally, and according to its rather subjective perception of what food banks needed. Headquarters would call up the food banks in a priority order and offer them a truckload of food. Bizarrely, all food was treated more or less equally, irrespective of its nutritional content. A pound of chicken was the same as a pound of french fries. If the food bank accepted the load, it paid the transportation costs and had the truck sent to them. If the food bank refused, Feeding America would judge this food bank as having lower need and push it down the priority list. Unsurprisingly, food banks went out of their way to avoid refusing food loads — even if they were already stocked with that particular food.

This Soviet-style system was hugely inefficient. Some urban food banks had great access to local food donations and often ended up with a surplus of food. A lot of food rotted in places where it was not needed, while many shelves in other food banks stood empty. Feeding America simply knew too little about what their food banks needed on a given day.

In 2005, however, a group of Chicago academics, including economists, worked with Feeding America to redesign the system using market principles. Today Feeding America no longer sends trucks of potatoes to food banks in Idaho and a pound of chicken is no longer treated the same as a pound of french fries. Instead food banks bid on food deliveries and the market discovers the internal market-prices that clear the system. The auction system even allows negative prices so that food banks can be “paid” to pick up food that is not highly desired–this helps Feeding America keep both its donors and donees happy.

Food banks are not bidding in dollars, however, but in a new, internal currency called shares.

Every day, each food bank is allocated a pot of fiat currency called “shares.” Food banks in areas with bigger populations and more poverty receive larger numbers of shares. Twice a day, they can use their shares to bid online on any of the 30 to 40 truckloads of food that were donated directly to Feeding America. The winners of the auction pay for the truckloads with their shares. Then, all the shares spent on a particular day are reallocated back to food banks at midnight. That means that food banks that did not spend their shares on a particular day would end up with more shares and thus a greater ability to bid the next day. In this way, the system has built-in fairness: If a large food bank could afford to spend a fortune on a truck of frozen chicken, its shares would show up on the balance of smaller food banks the next day. Moreover, neighboring food banks can now team up to bid jointly to reduce their transport costs.

Initially, there was plenty of resistance. As one food bank director told Canice Prendergast, an economist advising Feeding America, “I am a socialist. That’s why I run a food bank. I don’t believe in markets. I’m not saying I won’t listen, but I am against this.” But the Chicago economists managed to design a market that worked even for participants who did not believe in it. Within half a year of the auction system being introduced, 97 percent of food banks won at least one load, and the amount of food allocated from Feeding America’s headquarters rose by over 35 percent, to the delight of volunteers and donors.

Teytelboym’s very good, short account is working off a longer, more detailed paper by Canice Prendergast, The Allocation of Food to Food Banks.

Canice’s paper would be a great teaching tool in an intermediate or graduate micro economics class. Pair it with Hayek’s The Use of Knowledge in Society. Under the earlier centralized system, Feeding America didn’t know when a food bank was out of refrigerator space or which food banks had hot dogs but wanted hot dog buns and which the reverse–under the market system this information, which Hayek called “knowledge of the particular circumstances of time and place” is used and as a result less food is wasted and the food is used to satisfy more urgent needs.

The Feeding America auction system is also the best illustration that I know of the second fundamental theorem of welfare economics.

Even monetary economics comes into play. Feeding America created a new currency and thus had to deal with the problem of the aggregate money supply. How should the supply of shares be determined so that relative prices were free to change but the price level would remain relatively stable? How could the baby-sitting co-op problem be avoided? Scott Sumner will be disappointed to learn that they choose pound targeting rather than nominal-pound targeting but some of the key issues of monetary economics are present even in this simple economy.

The poor rely on fast food the least

New data, released by the Centers for Disease Control, show that America’s love for fast food is surprisingly income blind. Well-off kids, poor kids, and all those in between tend to get about the same percentage of their calories from fast food, according to a survey of more than 5,000 people. More precisely, though, it’s the poorest kids that tend to get the smallest share of their daily energy intake from Big Macs, Whoppers, Chicken McNuggets, and french fries.

That is from Robert Ferdman.  By the way:

More than a third of all children and adolescents living in the country still eat some form of fast food on any given day, a number which hasn’t budged in decades, according to the CDC.

And many children are getting alarmingly high proportions of their diet from chicken nuggets and french fries. About a quarter of all kids in the United States get 25 percent of their calories from fast food. And 12 percent of kids get more than 40 percent of their calories from fast food.

Is food the new music? (sentences to ponder)

Food has replaced music at the heart of the cultural conversation for so many, and I wonder if it’s because food and dining still offer true scarcity whereas music is so freely available everywhere that it’s become a poor signaling mechanism for status and taste. If you’ve eaten at Noma, you’ve had an experience a very tiny fraction of the world will be lucky enough to experience, whereas if you name any musical artist, I can likely find their music and be listening to it within a few mouse clicks. Legally, too, which removes even more of the caché that came with illicit downloading, the thrill of being a digital bootlegger.

Once, it felt like watching music videos on MTV was a form of rebellion in plain sight. Nowadays, the channel doesn’t play any music videos. Instead, we have dozens of food and cooking shows, even entire channels like The Food Network dedicated to the topic. Chefs have become elevated to the status of master craftsmen, with names that have risen above the status of their restaurants, and diners revere someone like Jiro of Jiro Dreams of Sushi fame the way a previous generation worshipped the guitar sound of a rock god like Jimi Hendrix.

The food scene today offers a seemingly never-ending supply of scarce experiences, ingredients, and dishes. Cronuts you have to wait in line for a few hours to get your hands on. Pop-up restaurants that serve only on a few nights a week for a few weeks, then disappear forever. Restaurants that you have to sacrifice a goat to just to get a reservation, and then they’ll actually take that goat you killed and prepare your entire dinner from it, nose to tail. A white truffle add-on that tacks $80 on to a single piece of cured hamachi, and oh, the truffle is only available for four weeks a year and came over on a gondola from Alba, Italy, and the hamachi is one of the last of three members of its species so you know, you should probably try it before…oops, sorry, the chef says someone just ordered the last of it. Yep, it’s that couple at the corner table, and that’s the last plate that she’s Instagramming right now.

That is from Eugene Wei, with more of interest at the link, via Graham Rowe.

If you could know only one thing about a city’s food scene…

No, it is not knowledge of the city’s best dish, nor is it access to all the Yelp reviews, or even an understanding of how the spices in that cuisine work together.

I have a simple nomination.  If you could only know one thing about a city, you would like to know what time the best and most popular restaurants fill up.

If you know that time, you can walk around a restaurant-rich area.  Wait for the best places to start filling up, and then make your move and muscle your way through the door.  Voila, the wisdom of crowds!

If you come too early, you cannot glean information from watching the customer flow because there isn’t any.  If you come too late, the best places are already full, or they have lines which are too long.  But if you are there at just the right time, and attentive to the movement of the crowds, what really can go wrong?

In Singapore the best time to start stalking the hawker centres is about 10:30 a.m., certainly no later than 11.  Otherwise the lines at the best stalls are simply too long.  Just show up at the right time, and assume the Singaporeans know what they are doing.  It works.  In Paris you must be looking for a good lunch restaurant before 12:30.

It is a common theme in food economics that knowledge of people, or knowledge of social mechanisms, is often more valuable than knowledge of food.  Knowing whom to ask and also how to ask is also often more valuable than a detailed knowledge of a cuisine per se.