Folks who have been to college know that meals in college cafeterias are cheaper compared to off-campus, why is that?

Food prices are low and thin. We often hear a proverb called thin profit, more sales, the meaning is simple. Only by lowering the price of goods can we attract more consumers and get good profits. If the food in the university cafeteria is very expensive, then the school cafeteria is not competitive. Why don't students go to eat outside the school? Why would you choose the university cafeteria at the same price? As a result, school cafeterias are usually much cheaper than off-campus cafeterias. It is also because of the cheaper prices that many college students go to the college cafeteria to eat, thus bringing a large number of consumers to the cafeteria. Although the price of dishes is relatively low, a large number of students is also a very substantial profit.

University cafeterias cost less and the dishes are cheaper. The other reason is that college cafeterias generally don't cost as much, which means that they are less expensive. We all know that if you go to the vegetable market alone to buy vegetables, the price may be higher because the market vendors will charge according to the retail price. However, university cafeterias are different. University canteens have to purchase large quantities of vegetables, fruits and meats on a daily basis, so they can use direct bulk supply to reduce the cost, which results in very low cost for university canteens. The purchase price of the dishes is also much lower than the market price, so they can get relatively low cost. The cost is relatively low as far as the price of the dishes is concerned.

Cafeteria windows compete with each other. Some university cafeterias use a contract system where all university cafeteria windows are managed by the university, which can ensure food safety. However, some universities have adopted the system of "attracting foreign investment" by opening university cafeterias and charging a certain amount of rent for each window. If this is done, there will be some competition among the windows of the cafeteria. In order to maximize the profit of each window, many windows will do some promotional activities to attract college students to eat. Therefore, in the face of such fierce competition in the university window, companies are also playing a "price war", the university cafeteria food prices are relatively low.