The Cost-Benefit Matrix of the Restaurant Industry

The following case study is in regards of economic market structure. In the world of economics all businesses or companies rather, are categorized in certain market structures such as monopoly, oligopoly, or perfect competition, for instance, the market structure for restaurants. Most restaurants are considered monopolistic competition. Being that they all sell and serve food. They have to have instances that vary such as price, logos, servers, locations, décor, types of food, and hospitality.

Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must

To truly understand the consumer’s needs one must listen to what the consumer wants and desires, it takes very little effort on the part of Company Q to understand the needs of its consumers. The effort we make can be the difference between a store’s success and a store going bankrupt. Insuring that Company Q's stores standout amongst its competitors in the marketplace will help give Company Q a competitive edge.

Does lower cost equate to getting a better value or does the quality of what you receive have better value? This is the customer’s subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings (Ferrell & Hartline, 2014). Numerous people have purchased all-inclusive vacation packages offered via Groupon.

A successful company would put its products at a competitive price but this doesn’t mean it has to be the cheapest in the market – supplying value-adds or better value for money or a personal service might help the company to compete with other rivals or competitors.

Darden Restaurants owns a number of specialty brands that are located throughout the United States and Canada. These include: the Olive Garden, Red Lobster, LongHorn Steakhouse, the Capital Grille, Bahama Breeze, Seasons 52, Eddie V's Prime Seafood and Wildfish Seafood Grille. The company has 2 thousand locations and they employ 135 thousand people. Their primary markets are middle class to affluent families. ("Our Company," 2012)

McDonald’s emphasizes cleanliness and food safety, in addition to quality and value service (QSC&V), through which it has succeeded in obtaining customer trust. The company also stresses ethical practices, dependability, and truthfulness in dealing with customers (McDonald’s, 2012, p. 1). Moreover, McDonald’s employs a coordinated marketing strategy that involves analyzing customer wants, creating products to satisfy his or her needs, setting the right prices and enhancing awareness of

Robert is wholeheartedly interested in making his father's business, "Frank's All-American Barbeque" the next big thing. He has a few conceivable choices for growing his dad's business—locate a bigger area in Fairfield, include a takeout choice,open more restaurants in surrounding communities, incorporate web marketing concepts, and expand the sales of sauces. But in doing so, he needs to make sure that the proposal that he presents to his father will outperform his father's current customer value. Customer value is when perceived benefits outweigh the perceived costs; when this happens the good or service is then seen as alluring. (Small business management in the 21st century, pg,99). Through Michael Porter's value chain model, we understand that customer value consists of four fundamental concepts; customers needs and wants, research and

The Cheesecake Factory, according to its CEO David Overton, has “broken all the rules” in order to become successful (“2017 Golden Chain Award Winner”). For example, their strategies go far beyond Porter’s understood and standardized theories of low cost versus differentiation (Porter, 1980, 35 and 41). The Cheesecake Factory manages to provide apparently luxurious food to its customers for cheap, thereby both keeping its food low-cost and differentiating their products. Instead of relying on one strategy to become successful, The Cheesecake Factory has the best combination of differentiators: its price and its quality. As a result, The Cheesecake Factory benefits from having the best of both of Porter’s strategies for competitive advantage, thereby conferring upon itself a tremendous marketplace advantage (Hambrick and Fredrickson, 6).

For example, Primark is offering to their customers the high quality, at value for money. It is supported by service promised by

As mention before, Restaurant Brands International is a merger company that contains Burger King, a coffee shop and a restaurant called Tim Hortons. Since it was a merger that occurred in 2014, there isn’t much info for the company; however, since Burger King has been almost as old as McDonalds so much of the info will come from Burger King. Burger King is practically the same as McDonalds created in 1950s yet a few years later after its competitor was born. The main difference of how it was created was that Burger King started off like a stove and that name of the stove was named Insta-Boiler.

If a new franchise an offer the consumer a quality product at a reduced price, then the chances of success are greatly increased. For example, Chanello’s and Little Caesar’s offer discounted pizza prices, and maintain the same quality as other pizza chains. These companies spend less on advertising and more on the actual product. That’s a very important concept in this industry, because their quality product at this discounted price gives them a niche in the market. Once a company establishes a niche, they become more visible to the

Within the United States, 12.7% of households had been food insecure at some point within 2015, meaning that not enough money was had to spend on food. ("United States Department of Agriculture Economic Research Service", par. 3) With this in mind, one of the largest problems when it comes to nutrition in the developed countries of the world is the availability of nutritious food to the lower classes because lower quality processed food is easier to obtain than nutritious food. This only seems to be a trend within developed countries so this argument will only focus on the developed countries such as the United States and France. Underdeveloped countries are left outside of these studies as they do not have widespread statistical values for any of their nutrition at any of the levels of

candidates for ABC. One reason for this is that in the services industry a great

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.