This may not be a bad thing actually.  Prices in Birmingham are not the highest by any stretch of the imagination.  There's a lot of poverty stricken areas as well as the rich.  Plus there's a lot of competition.  This may be a loss leader in order to get repeat custom.  Groupon, KGB and others can be good business if they are thought out carefully.  I don't know who he is, but if this guy has done his math, it may work out handsomely for him.