Price Of A Fast Food Restaurant

1570 WordsApr 25, 20167 Pages
Price Moe’s southwestern grill, like many other businesses, price their food using many different strategies such as value based pricing, cost based pricing and/or competition based pricing. Moe’s grill is known for their quality of food. Because of this, customers are willing to pay a higher price than they normally would when going to a typical fast food restaurant. Pricing this way is considered value based pricing. There are times when restaurants cannot just use one specific pricing, Moe’s also uses the competition based pricing method to effectively sell their product(“Moe’s Prices,” n.d.). Their competition includes Chipotle and Qudoba, these two Mexican cuisine restaurants also focus on their food quality and value. Because all three of these similar restaurants sell the same genre of food with relatively same value, they have to use each other to determine what is an appropriate for them to sell their food at. Using this competition based pricing is very effective and seems to work for Moe’s restaurant because customer keep coming back. Using Cost based pricing is also effective for Moe’s restaurant because food is universally known, many people know how much it cost for general food so customers don’t tend to question the high prices because they already know they are getting good food for the price they pay. Using all three of these pricing strategies is important to Moe’s business and allows for them to make sure they are putting the proper prices on their

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