Hotelling's law.... with baseball bats.
A Renegade Muscles in on Mister Softee’s Turf
11–20 of 22 posts
Re: A Renegade Muscles in on Mister Softee’s Turf
#12Earlier quoted context omitted.
Location is a serious thing in NYC for vendors. If someone moves within 10 feet of you, imagine your daily revenue cut in half. Sometimes vendors will informally buy locations from other vendors.
Setting up shop directly next to your competitor is the best choice, i.e., Nash equilibrium. That's why all the gas stations and coffee shops cluster up instead of spreading out. For example, on a beach, you should expect 2 ice cream vendors to cluster in the exact middle rather than move closer to their respective territories. This video explains it perfectly: https://www.youtube.com/watch?v=jILgxeNBK_8
Unlike gas stations and coffee shops, which have static locations, ice cream trucks are more like buses. When a pair of buses on a route bunch up, the one in front gets fuller.
Re: A Renegade Muscles in on Mister Softee’s Turf
#13There was a great Radiolab episode about this: http://www.radiolab.org/story/cold-war/
Re: A Renegade Muscles in on Mister Softee’s Turf
#14I've lived in NYC my entire life, and I've never even heard of New York Ice Cream. Mr. Softee's has always been the dominant (and singular) soft-serve truck. Interesting that someone is challenging their dominance, although I doubt this will play out as well as the dollar-pizza wars for the average pedestrian.
The article says that New York Ice Cream only started sometime around 2013 and only "locked down" the midtown area last year, so perhaps that's why you've never heard of them before.
Re: A Renegade Muscles in on Mister Softee’s Turf
#15> Mr. Conway said Mister Softee had not sought legal remedy for the bullying. “It’s just the way it is,” he said. “Life on the street.” What? What the fuck? These are ice cream trucks, not drug dealers. Why aren't they protecting their employees? If it's as bad as they say, all they'd need is a few security cameras and the police could start making arrests.
It sounds like a 'cash heavy' business that might not want a lot of regulatory scrutiny. Plus, the choice spots might technically be in violation of some NYC code and they don't want the cops getting precise about what is and isn't legal. I was in NYC last weekend and I noticed that they squeeze in at the end of blocks where there isn't really a proper parking space.
Re: A Renegade Muscles in on Mister Softee’s Turf
#16> Mr. Conway said Mister Softee had not sought legal remedy for the bullying. “It’s just the way it is,” he said. “Life on the street.” What? What the fuck? These are ice cream trucks, not drug dealers. Why aren't they protecting their employees? If it's as bad as they say, all they'd need is a few security cameras and the police could start making arrests.
Because they use the same intimidation tactics (the operator obviously didn't want to cop to this in the article, but the author mentions some instances) and both companies would suffer if either persued legal action.
The truck operators stand to gain a lot more turf by hiring thugs and former service members who will not be intimidated or will intimidate competition than with legal action.
Also keep in mind this is a cash-only franchise business operating at non-fixed locations in NYC... cameras are not in the best interests of the truck operators.
Re: A Renegade Muscles in on Mister Softee’s Turf
#17Earlier quoted context omitted.
Setting up shop directly next to your competitor is the best choice, i.e., Nash equilibrium. That's why all the gas stations and coffee shops cluster up instead of spreading out. For example, on a beach, you should expect 2 ice cream vendors to cluster in the exact middle rather than move closer to their respective territories. This video explains it perfectly: https://www.youtube.com/watch?v=jILgxeNBK_8
Unlike gas stations and coffee shops, which have static locations, ice cream trucks are more like buses. When a pair of buses on a route bunch up, the one in front gets fuller.
...fuller of money.
Re: A Renegade Muscles in on Mister Softee’s Turf
#18Sounds ripe for "Uber for Ice-cream". Pull out your phone and the truck comes to you .
You could have that with Seamless today if you had delivery riders with insulated boxes.
Re: A Renegade Muscles in on Mister Softee’s Turf
#19All i could think about while reading this was the Curb Your Enthusiasm Episode where Larry David freaks out every time he listens to the Mister Softee song.
Re: A Renegade Muscles in on Mister Softee’s Turf
#20Earlier quoted context omitted.
Unlike gas stations and coffee shops, which have static locations, ice cream trucks are more like buses. When a pair of buses on a route bunch up, the one in front gets fuller.
...fuller of money.
Notional Express proved that that is true, when they "disrupted" public transportation in Britain.