I think I read grocery store profits are like 1%. So nobody is going to open a new one unless they are the only one in town (and can jack prices up).

During boom times everybody in the food chain takes a cut , once things level off then the top squeezes the middle who then squeezes the bottom. You will find regulations for scrapping are being done so the top end can weed out the middle/casual guys and keep their cut. Heck someday the local cities will make laws so that all scrap metals MUST be turned in to get recycled at the local city scrap shop so they can keep the profits, would stop those idiots who take manhole covers and utility lines from making a buck atleast.