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November 21st, 2008
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Not exactly lovin' it

Comparison shopping at McDonald's, and other shopping tips

By Dave Faries
Staff Writer, The Prague Post
August 20th, 2008 issue

JAN PŘEROVSKÝ/THE PRAGUE POST
Time is money, but whether you spend it wisely is a matter for the Big Mac Index.
At some point in the conversion to “expat,” you stop mentally converting prices into your home currency.
But, not long ago, after shelling out 225 Kč for a taco plate plus chips and salsa at Amigos, a nagging comparison crept into my head: I had just paid the equivalent of $15 for a cheap, $5.99 sit-down meal.
Of course, the cost of goods and services vary from country to country, particularly for some of the more exotic ingredients, such as ground beef and tomatoes. That’s why The Economist years ago selected Big Macs to measure PPP, an abbreviation for “purchasing power parity.” Economist editors say they chose McDonald’s flagship burger because it is rarely subject to special discounts, and thus is an accurate worldwide measure of currency exchange rates and local product cost.
The publication’s most recent Big Mac Index put the U.S. price of the burger at $3.57, almost a dollar less than in the Czech Republic, at $4.56 — still cheaper than Switzerland ($6.36), but a far cry from the measly $1.83 paid by folks in China.
In current prices, the “McRoyal” — essentially a single cheeseburger — and large fries that I picked up at McDonald’s on Na Příkopě last week cost 101 Kč. If you venture to northwest Arkansas and order a double cheeseburger and large fries, however, it will run roughly the equivalent of 45 Kč.
But there’s another way to look at food costs. In 2006, the banking firm UBS evaluated the amount of time a person must work to buy a Big Mac for lunch. Think those lucky stiffs in Beijing have it good? It takes them 44 minutes of hard labor before they can even think “Golden Arches.” Czechs only have to spend 39 minutes in their cubicles for the same meal.
But then, that’s grueling compared with London (16), Los Angeles (11) and Tokyo (10).
Yet none of this explains the near-parity between prices at KFC here and overseas. Five chicken strips and coleslaw on Národní: 100 Kč. In the same Arkansas community: close to 90 Kč. Seems like a much more equitable exchange.
Otherwise, currency conversion remains a depressing exercise. I worked about 350 minutes to eat at Amigos, when you factor in journalism’s normal pay scale.
Dealmakers
There’s still time to catch the August degustation menu at Il Giardino. Chef Reinhard Danzinger’s arrangements are paired with wine — for example, terrine of quail with a good Czech chardonnay, chanterelle risotto and pinot blanc, lamb kebab and foie gras finished by a Chilean cabernet sauvignon, and so on. The menu itself runs 990 Kč, or a solid 500 minutes at the office. Wines add 760 Kč. Call 257 154 262 for more information.
The folks at the Nový Smíchov Káva Káva Káva would like to introduce all pancake fans to a fluffy Czech version known as lívance. The deal? Three pancakes and a cup of coffee for 99 Kč — handily beating the McRoyal by at least 2 Kč. Drop by during happy hour (6–8 p.m.) and grab two-for-one beers or wine.
Call me Ishmael
Word on the street has Starbucks adding another location to its fast-growing Prague empire, this one smack on Old Town Square, opposite the clock tower. Sounds like a great opportunity to sit away from the crowds with a grande whatever and wait for the damn thing to go through its gyrations.
Cold beer here
Brewmasters at Pivovarský dům whipped up a small batch of American IPA, using hops from the States. It’s not on the menu and may not last long, but early reports suggest it’s very smooth and impressive. Now if someone would just distill a batch of good old American bourbon …
Final (slurred) words
Ran into two real entrepreneurs last weekend: a couple of American college kids running a bar-tour business, leading an equally young crowd in and out of establishments near Old Town Square. Granted, it takes very little effort to find a spot to sit and drink, especially in the city’s tourist zone. Yet they manage to gather crowds of 60-plus on nights when they choose to work — at 400 Kč per head — and herd them into Bohemia Bagel for a good old-fashioned plastic-cup beer bash, followed by M1, Chateau Rouge and a select club (Celnice on this particular evening). Clearly these two have a future in the corporate world. Anyone, after all, can exploit an unfulfilled demand. But to find a niche where no real need exists — damn, that’s brilliant.

Dave Faries can be reached at dfaries@praguepost.com


Other articles in Night & Day (20/08/2008):

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