Breadtalk Economic Analysis

willingness to pay goes down. When this happens, consumers turn to alternate goods that may not be as efficient or as high in status, but still get the job done. If the price of butter goes up,

Everybody has a favorite place to eat. Eating out can be a very pleasant experience or a disastrous one. People are free to choose from a wide range of different restaurants where to spend time and have a meal. Although, not all restaurants are the same and each has different characteristics regarding class, interior, cuisine and service. This paper provides a comparison of 4 different restaurants (fast food, casual, upscale): McDonald’s, Panda Express, Applebee’s and Delmonico’s.

As mentioned in the case study, Panera Bread Company is known to be one of the leading bakery/café that offers freshly baked pastries and French inspired entrées across various states in the US. However in the recent years, Panera Bread faced a decrease in their usual high growth rate from 9.1% and 12.0% in the year 2000 to merely 0.2% and 0.5% of comparable sales and annualized unit volumes respectively.

When people have more disposable income it is very common for them to go out to eat more often to casual dining restaurants such as Olive Garden. Meanwhile when people have less money they prefer to eat at places such as McDonald’s because it is less expensive. Knowing this we can infer that McDonald’s is an inferior good and casual dining places like Olive Garden are normal goods. It is very true that the demand for normal goods decreases as income decreases also and it is very much true that when people have less money their demand for inferior goods increases.

McDonald’s is the global foodservice business with more than 20,000 local restaurants serving more than 30 million customers each day. McDonald’s has spread through over 100 countries, including countries in East Asia (Watson, 3). In the book “Golden Arches East: McDonald’s in East Asia” by James L. Watson, he studied three countries which were Beijing, Seoul, and Japan. Also, he wrote how McDonald’s has played a role in each countries cultures that he mentioned. He mentioned how different countries McDonald’s share similarities and differences the way cultures were impacted economically and politically, and also, how people viewed the American cultures coming to their countries. In this essay, I’ll be writing about how McDonald’s has been

This paper will introduce a product and service which operates in the U.S. with the intent to expand within foreign markets eventually. The service that I chose is a current service in the food service industry that does exist but would benefit from enhancing it; there are market trends for the new service that would definitely satisfy potential customers’ needs and wants once the idea is brought to their attention. The goal is to bring the feel of the city’s fine dining and lounging experience to areas outside the city without having to travel far or spend more. The service is an

Unlike the price elasticity of demand, the price elasticity of supply plays an important role on how producers respond to the change in price. I argue that all bread sold in Canada has more elasticity than all shoes sold in Canada owning to three main factors, which are the availability of raw materials, length and complexity of production and mobility of factors.

Keywords: Economic theory, Demand, Supply, Consumer Preferences, Poverty and low income, heterogeneity and homogeneity food

Have you ever woken up to the sound of gunshots outside your house or had no right of getting an education because of your gender. Probably not but quit a few countries that are under a dictatorship like government. In the book Bread winner by Deborah Elise she writes a story about an eleven year old girl who cuts her hair wheres boy clothing so she may walk to the market by herself to support her large family that grows and shrinks after her father gets arrested by the Taliban.

Supply and demand are the rulers of price in the capitalist economy of the United States, and farm goods rely on these factors as much as any other commodity. The demand for food remains relatively stable although slightly increasing year to year, but the supply fluctuates greatly depending on

Therefore the demand for the low-calorie microwavable food is inelastic. An increase in the price of the food will cause a decrease in quantity demanded. Income elasticity of the goods calculated is 1.08, which means that the good selected is a luxury good. Changes in income could also affect the demand of this product. The cross price elasticity is 0.005. Therefore the two goods can be considered as neutral goods. The advertisement elasticity is 0.08. This indicates that advertisement has an important impact on the sales of the product. Lastly, the microwave ovens elasticity is 0.05. This is a direct correlation as sales of microwave ovens increase; demand for of low-calorie microwavable food also increases.

2.3 THREAT OF SUBSTITUTES Substitutes do not entirely replace existing products but may introduce new technology or reduce the costs of producing the same product (Porter, 1980). Substitutes may limit the profits in an industry by keeping their prices down (Porter, 1980). The threat of substitution is quite high in this industry because consumers are able to substitute to other major retailers, convenience stores, niche product outlets, restaurants, bakeries, butchers and farmers (Coriolis Research, 2004). Supermarkets like Tesco and ASDA have a range of products and services that have close substitutes, effecting price elasticity of demand because the market is sensitive to price (IBISWorld). The demand for a particular brand or retailer will increase or decrease concurrent to the movement of price in comparison to its competition (IBISWorld). The UK supermarkets are always trying to increase the quality of products and services resulting in a constant need to differentiate products and services from competition to make them less price sensitive.

Singapore has become a very competitive market for the fine dining restaurant segment. How do restaurants compete in attracting affluent customer?

The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.

▪ If you market a slice, what affect does that have on the whole loaf?