Why is it that some Foodstalls/Cafe’s sell out of their product everyday, but never decide to get more stock for each day?

Question

This confuses and infuriates me, lots of Food vans/stalls where i live have special niche’s such as selling croissants etc, and these places make an absolute KILLING and run out of stock so very early in the day, yet they never seem to decide to just have more ready for the day?

It doesnt make sense to me, it would increase profit, only difficulty i see is that its a risk that they dont need to take.

In: Other

Answer 1

3 KEY POINTS-
1. shorting inventory to run out reduce waste due to loss.
2. customers that know a product will be scarce will tend to buy earlier and pay more.
3. It’s sets an end to the business day that is more rewarding than a never ending grind.