Fast Food
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Feb 20, 2024
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Linenberger 1
Gabriela Linenberger
Dr. Prera
EonS 102
Assignment 1
The Impact of Rising Costs on Fast Food Menus
Fast food has long been a staple of modern life, offering convenient and affordable dining
options to millions of people worldwide. However, due to a shift in supply and demand as well as rising prices, fast food is becoming less convenient, and companies work to balance their prices with their spending. The impact of these changes directly affects the consumer and their own decisions when considering fast food purchases.
One of the primary factors driving up costs for fast food chains is the increase in ingredient prices. The rise in prices can also be attributed to rising labor costs. As these costs rise, fast food establishments can either choose to take the blow or adjust the prices and proportions of their products. Heather Haddon’s article Burger King, “Domino's Pull Back on Value Menus as Costs Rise; Other restaurant chains are also shrinking portions or offering fewer discounted items; some customers take notice”, in the Wall Street Journal discusses the strategies
used by corporations. Haddon makes note of Domino’s and Burger King's shared strategy of “reducing menu discounted prices” and “shrinking portions to improve margins” (Haddon, 2022). While other companies such as McDonald’s stick to raising prices on products such as soda to balance out the rising prices on supply. The menu adjustments of reducing portion sizes,
Linenberger 2
altering recipes, or discontinuing certain menu items, while keeping menu prices in check, can also disappoint loyal customers, potentially affecting brand loyalty.
Rising costs have a direct impact on consumers. Fast food becomes less of an affordable dining option, particularly for lower-income individuals and families, and can have consequences
for both the consumer’s budgeting choices and the company’s profits. Consumers may potentially be less inclined to buy fast food or simply choose to dine out less frequently, affecting
fast food chains' sales and profitability. While consumers are expressing disapproval with the rising prices and lower quality, according to Di Lewis’s article “Fast Food Industry Trends, Stats,
and Analysis for 2022” on SynergySuite, the fast-food industry is still expected to continue growing in value, quickly recovering after the covid set back with anticipation to further their profits.
In response to rising costs, fast food chains are also innovating and adapting. These restaurants aim to maintain profitability without compromising on customer experience. Chains are introducing more transparent pricing structures and marketing strategies to help consumers understand the value they receive despite higher prices. With the understanding of the necessity on large corporations’ ends for the price rises and changes within their menus, there can be a level of understanding on the consumer’s end. While this does not make up for the lower-income
families facing budget struggles with the new prices and reduced proportions, it is not enough to stop fast-food corporations from raising prices in the future, as supply and labor costs strain their
profits.
The impact of rising on labor and supply of ingredients affects both the seller and the consumer. As ingredient prices continue to climb, fast food chains face the challenge of balancing profitability with affordability. This dilemma has led to menu adjustments and a need
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READ THEN ANSWER THE QUESTION :
In January 2020, Starbucks raised their beverage prices by an average of1% across the U.S, a move that represented the company’s firstsignificant price increase in 18 months. I failed to notice because the pricechange didn’t affect grande or venti (medium and large) brewed coffeesand I don’t mess with smaller sizes, but anyone who purchases tall size(small) brews saw as much as a 10 cent increase. The company’s thirdquarter revenue rose 25% to $417.8 million from $333.1 million a yearearlier, and green coffee prices have plummeted, so what gives?Starbucks claims the price increase is due to rising labor and non-coffeecommodity costs, but with the significantly lower coffee costs alreadyimproving their profit margins, it seems unlikely this justification is the truereason for the hike in prices. In addition, the price hike was applied to lessthan a third of their beverages and only targets certain regions. Implementingsuch a specific and minor price…
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READ THEN ANSWER THE QUESTION :
In January 2020, Starbucks raised their beverage prices by an average of1% across the U.S, a move that represented the company’s firstsignificant price increase in 18 months. I failed to notice because the pricechange didn’t affect grande or venti (medium and large) brewed coffeesand I don’t mess with smaller sizes, but anyone who purchases tall size(small) brews saw as much as a 10 cent increase. The company’s thirdquarter revenue rose 25% to $417.8 million from $333.1 million a yearearlier, and green coffee prices have plummeted, so what gives?Starbucks claims the price increase is due to rising labor and non-coffeecommodity costs, but with the significantly lower coffee costs alreadyimproving their profit margins, it seems unlikely this justification is the truereason for the hike in prices. In addition, the price hike was applied to lessthan a third of their beverages and only targets certain regions. Implementingsuch a specific and minor price…
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READ THEN ANSWER THE QUESTION :
In January 2020, Starbucks raised their beverage prices by an average of1% across the U.S, a move that represented the company’s firstsignificant price increase in 18 months. I failed to notice because the pricechange didn’t affect grande or venti (medium and large) brewed coffeesand I don’t mess with smaller sizes, but anyone who purchases tall size(small) brews saw as much as a 10 cent increase. The company’s thirdquarter revenue rose 25% to $417.8 million from $333.1 million a yearearlier, and green coffee prices have plummeted, so what gives?Starbucks claims the price increase is due to rising labor and non-coffeecommodity costs, but with the significantly lower coffee costs alreadyimproving their profit margins, it seems unlikely this justification is the truereason for the hike in prices. In addition, the price hike was applied to lessthan a third of their beverages and only targets certain regions. Implementingsuch a specific and minor price…
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READ THEN ANSWER THE QUESTION :
In January 2020, Starbucks raised their beverage prices by an average of1% across the U.S, a move that represented the company’s firstsignificant price increase in 18 months. I failed to notice because the pricechange didn’t affect grande or venti (medium and large) brewed coffeesand I don’t mess with smaller sizes, but anyone who purchases tall size(small) brews saw as much as a 10 cent increase. The company’s thirdquarter revenue rose 25% to $417.8 million from $333.1 million a yearearlier, and green coffee prices have plummeted, so what gives?Starbucks claims the price increase is due to rising labor and non-coffeecommodity costs, but with the significantly lower coffee costs alreadyimproving their profit margins, it seems unlikely this justification is the truereason for the hike in prices. In addition, the price hike was applied to lessthan a third of their beverages and only targets certain regions. Implementingsuch a specific and minor price…
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Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has
graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden,
Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and
general demographic changes in population. Sydney's marketing research has given him some estimates for the different locations as described in the decision table
below.
Alternatives
Fort Alden
Central City
Roseville
Answer
Decision Table
Strong Market
75,000
68,000
105,000
State of Nature
Fair Market
Step 1 of 2: Using the maximax strategy, where would Sydney decide to start his restaurant?
O Roseville
O Fort Alden
48,500
52,000
76,000
O Central City
Poor Market
25,000
27,000
30,000…
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Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has
graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden,
Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and
general demographic changes in population. Sydney's marketing research has given him some estimates for the different locations as described in the decision table
below.
Alternatives
Fort Alden
Central City
Answer
Roseville
Decision Table
Strong Market
75,000
68,000
105,000
Step 2 of 2: What would Sydney's anticipated payoff be for the maximax strategy?
State of Nature
Fair Market
48,500
52,000
76,000
Poor Market
25,000
27,000
30,000
Keypad
Keyboard Shortcuts
Tables
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Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydney’s marketing research has given him some estimates for the different locations as described in the decision table below.Decision Table
State of Nature
Alternatives
Strong Market
Fair Market
Poor Market
Fort Alden
75,00075,000
49,50049,500
35,00035,000
Central City
70,00070,000
54,00054,000
29,00029,000
Roseville
115,000115,000
80,00080,000
40,00040,000
Step 2 of 2 :
What would Sydney’s anticipated payoff be…
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Homework (Ch 05)
On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $50, $75, $100, $125, $150,
$175, and $200 per scooter.
TOTAL REVENUE (Dollars)
7830
7290
6750
8210
5670
5130
4590
4050
3510
2970
0 25 50 75 100 125 150 175 200 225 250 275 300 325
PRICE (Dollars per scooter)
Total Revenue
gage Learning
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of scooters is currently $25 per scooter, shown as point B on the initial graph. Because the demand between points A and B is
a $25-per-scooter increase in price will lead to
in total revenue per week.
In general, in order for a price increase to cause a decrease in total revenue, demand must be
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Business
Math
16. Use the following supply and demand data for a
cake business to draw a supply and demand curve.
Circle the equilibrium point. How many cakes
should the entrepreneur supply each week? Why?
What price should the entrepreneur charge for
each cake? Why?
Supply
Quantity per wk.
2
4
6
8
12 14
Price per cake
$5 $10 $15 $20 $30 $35
Demand
Quantity per wk. 19
16
13
10
7
4
Price per cake
$10 $15 $20 $25 $30 $35
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Background information and a link to the news story
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what does this mean in terms of the interrelationship of supply, price, and demand on two items of your choice. Maybe it’s a Christmas that a child really wants but that most stores no longer have in stock. Or it might be a piece of clothing that you bought last year and now want to replace it but which is hard to find or twice as expensive as what it was last year.
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The figure below shows Serena's demand curve for days in the hospital. The marginal cost of an additional day in the hospital is $200
Price (5/day
400
300
200
100
D
Length of hospital stay (days)
If Serena had to pay the entire marginal cost of spending a day in the hospital, then she would choose to stay.
Multiple Choice
days)
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#8
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Identify an experience good. Identify a search good. How does the retailing of the experience good differ from the retailing of the search good? Do these differences help consumers?
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The following table shows the demand and supply of tickets of a football game which will be held at Shah Alam Stadium.
Unit Price (RM)
Market Demand (units)
Market Supply (units)
20
5000
3500
40
4000
3500
60
3000
3500
80
2000
3500
100
1000
3500
a) On your foolscap paper, draw the demand and supply curves. Label all axes, all curves and the equilibrium point. (6m)
b) How much is the equilibrium price and equilibrium quantity? (2m)
c) At which price will there be a surplus of 2500 tickets? (1m)
d) What will happen when the market price is RM40? Show your answer on the same diagram. (3m)
e) Why is the supply of tickets fixed at 3500? (1m)
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Why is the cost of serving a long-standing
customer far less than the cost of acquiring a
new customer?
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undamentals #2
Pause
Q Zoom
Question 3
Question 3
Which of the following changes in supply and demand will lead a product to become less scarce?
decreased demand, increased supply
increased demand, decreased supply
decreased demand, decreased supply
increased demand, increased supply
©2021 lluminate Education , Inc.
P Type here to search
Prt
F2
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Directions
Post your initial response by Thursday & reply to 2 other students by Saturday.
You have been learning about the factors that affect supply and demand as well as how price affects the quantity demanded or supplied. In this week's discussion board, you will be running a computer printer shop. You only produce and sell various types of printers which you make using various inputs.
Below is a list of economic conditions you are currently experiencing:
1. You implemented new technology to build the printers.
2. You experienced a decrease in the price of print ink cartridges a complement
for printers. 3. You increase the price of printers.
4. The price of plastic to make the printers decreases,
5. A new eco-friendly trend as emerged and your printer is rated #1 in eco- friendliness.
Using the 4-step process in described in chapter 3 complete the following for each scenario:
1. Step 1-Draw a demand curve and supply curve before the economic change took place label as…
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Please answer fast I'll rate you sure ? ?....
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What are your views on the relationship between price and demand? How can a company determine the right price for their products and/or services? What are some of the most important factors that companies should consider when setting prices for their products or services, and how can they strike the right balance between capturing customer value and maximizing profits?
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Graphically illustrate how the demand curve for electric vehicles will be affected in each of these cases below.(a) A major climate change awareness campaign is instituted which teaches consumers about clean energy vehicles.
(b) The price of gas-powered vehicles falls significantly, due to lower costs of production. (c) Gas prices experience a significant and long-standing increase.(d) The price of electric vehicles falls due to a fall in the cost of production.
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Typed and correct answer please. I ll rate accordingly
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