Published on December 11, 2023, 12:56 am

The politically-prominent Senator Elizabeth Warren has recently expressed mounting concern over what she terms as a growing “sandwich shop monopoly”. This burgeoning apprehension stems from the revelation that private equity firm Roark Capital, which owns popular establishments like Jimmy Johns and McAlister’s Deli, is poised to acquire Subway. The family-owned sandwich chain agreed to a $9 billion buyout by Roark Capital, who also have under their control Baskin-Robbins, Dunkin Brands, Buffalo Wild Wings, and Sonic.

This move by Roark Capital may seem ordinary on the surface but it has lead to ripples in the realm of politics. Underneath this lucrative deal lies territory that Warren believes requires an intervention by the Federal Trade Commission (FTC). While most people may not have strong sentiments about who owns Subway- whether it’s a family-run business or a capital equity firm doesn’t quite concern them, it does alarm Warren who sees potential antitrust implications.

So far the administration of President Joe Biden hasn’t had much success in halting mergers legally despite obvious opposition towards large businesses. While ensuring competition remains vibrant is certainly within FTC’s jurisdiction, an ostensibly inflated concern about a speculated “sandwich shop monopoly” might be pushing it too far.

Accentuating how unrealistic this claim of a sandwich shop monopoly is, we must note that running such establishments hardly present high barriers to entry. The simple act of bundling meats and condiments on bread should not be seen as some insurmountable objective that only few can achieve.

To extend the definition of monopoly – which refers to the total control or exclusive possession of supply or trade in commodity or service – to include sandwich shops seems not just unlikely but slightly far-fetched. Despite Subway’s impressive footfall across numerous locations worldwide, smaller independent delis continue to spring up everywhere.

Features pertaining to fast food price spikes are often attributed to consolidations by advocates like Warren, but on closer look, these reflections might not be rooted in reality. Beyond the realm of conjecture comes the hard truth that state-enforced minimum wages nearing $20 an hour are more likely culprits behind soaring fast-food prices.

Progressives are often associated with voicing negative opinions about private-sector activities and are even reportedly viewed as finding it tough to admit that inflationary government policies could contribute to economic issues. They seem keen on establishing a villain in every situation, whether it’s focusing on fast-food joints or tech firms for reasons varying from nutritional concerns to wage problems, mergers and rising prices.

It is essential to remember when faced with exorbitant pricing at your local sandwich shop that government policies could potentially be playing a role. The FTC’s recent interest in battling perceived sandwich “monopolies” appears reflective of this belief.

The discussion surrounding the dangers of monopolistic practices within niche sectors such as the sandwich industry showcases new boundaries being explored within context of potential business regulation. However, one needs to consider if we’re going too far down this road. Are there perhaps more pressing matters that demand our attention? These are questions that resonate as we digest this shift towards an increasingly cautious perspective on mergers and acquisitions in elements of real news today seen through a Christian worldview.