The Price Of Food Restaurants

1247 Words Sep 22nd, 2016 5 Pages
quality. There are dozens upon dozens of fast-food restaurants that offer the standard staple meal of a burger and fries. The difficulty in setting yourself apart from the competitors is by trying to offer something better, or different than the other guy. Why do customers want to come to ‘X restaurant’ as opposed to ‘restaurant Y’. The factors that go into the decisions are very broad.
The taste of the food, its quality, the price of the meal, how fast that food is made and so on, all factor into that decision for consumers. In the Industry, Panera is always in risk of substitutes due to their lower cost and accessibility. Accessibility being the overall number of other stores and how fast they provide the food.
Threat of Entry
Threat of entry in this industry is at a medium risk, due in part to the large amount of already established fast food restaurants and the very competitive nature of the industry. The barriers of entry are moderate and cost will usually be high depending on what type of restaurant they open. For example, franchises can cost quite a bit of money, but have the ability to make it back based on resources and location in a reasonable amount of time. As for smaller restaurants, cost can be lower when entering but it will be extremely difficult and risky for them to compete with the big name brands of the industry. The most common reaction for the threat of new entries is to analysis them and find what types of strategies they are planning to…
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