Chapter 8 1. Question #1, page 189 in text By allowing student to pick and choose between prices, they will pick price will below their reservation price and university cannot get to their surplus. For example, sleepers will have a consumer surplus of $2,500 when they buy the dorm room by $3,000. The eaters will have consumer surplus of $ 3,500 when they buy the meal plan by $2,500. The best price to consume the maximum consumer surplus and get the highest revenue is to charge a total of $8,000 for a both dorm room and meal plan.
The situation is very ironic because the grocery stores with nutritious food advocates for fast food restaurants that are, in context, competing with their sales. Prices of fast food products appear cheaper than full home cooked meals. On average, costumers pay four dollars for a drink, a burger, and a side item. Additionally, fast food is fast. Each fast food corporation has special procedures to keep their paying costumers happy by giving them exactly what they asked for, fast food.
Santos Covarrubias Professor Anders English W 115 4 November 2012 Switch Now Save Money What would you do with an extra $500 dollars? Would go out to eat at a restaurant? Would you go shopping? Well, you can save over $500 dollars switching phone carriers. Phone carriers are like gas for your car, it’s something that at this time you must have, and phone carriers and gas companies can raise the price as high as they want too and you have no choice but to pay for the service.
Truett’s model for selling his franchises is unique for the industry. Instead of requiring candidates to commit to purchasing several restaurants in a region and requiring the candidate to pay high prices up front for rights, buildout and equipment, Truett assumes most of the financial responsibility. He feels this is important in order for him to cast a wide net in his search for prospective franchise owners. In 1964, the buy in price to own a Chick-fil-A franchise was $5,000. Today the price remains $5,000.
Academic Summary: Brownlee In the editorial, “It’s Portion Distortion That Makes America Fat”, economist Shannon Brownlee discusses the topic of obesity in America. She claims that fast-food restaurants do well economically when we gain weight. She begins by introducing information about different cases where fast-food restaurants have been the cause of the obesity in persons. She provides previous background about the topic referring to how people used to eat back in time. In addition, Brownlee claims that the reason of fast-food restaurants work is by marketing.
At this point Outback Steakhouse is looking to globalize their product and they are trying to open another restaurant with the same types of principles as Outback called, Carrabbas Italian Restaurant. They are still and always will be striving to provide Americans and the rest of the world with the finest steaks and other menu choices, for the best possible price. Trends are definitely a
IPO Project –Chipotle Mexican Grill, About company Chipotle Mexican Grill, Inc. and its subsidiaries has operated 1,084 restaurants in the United States, two in Toronto, Canada and one in London, England till December 31, 2010.Over the past five years, company has experienced grown up greatly and substantially, and expect to their big rally of 2011, new openings between 135 and 145 restaurants are expected to operate in 2011. Chipotle is working to change the way people think about and eat fast food by looking to fine-dining restaurants for inspiration. Chipotle use high quality ingredients, classic cooking methods to make good tasting food, have top performing people to take care of each customer, and make restaurants operationally
* Meets the desire of Paul Livoria * Additional revenue source ( appendix 4) * Increasing franchising trend, 70% of restaurants in Dawkins are franchises * Takes advantage of population growth and high family disposal income in Dawkins * A strong motive for franchise managers to make their restaurants as profitable as possible * An opportunity to improve menu base on local demand, shared innovative ideas and success stories among franchisees that can help strengthened growth Cons * Risk of losing sandwich quality as managers might not comply to standard procedures or invest in people or maintenance * Additional cost of finding and monitoring company managers * In case of failure to comply to franchise agreement, terminating the contract can be costly and difficult * Increasing strict quality heath control in Dawkins and risk of losing franchises that do not adhere to these quality
Manufacturing was at an all time high, and people had a lot of money to invest and spend. A social factor was the rise of the family unit and the need for restaurants that were family friendly. 3. How is the 'American world view' embodied in the fast food industry? The “American world view” is embodied as the fast food industry is probably one of the greatest examples of capitalism, which is what America is most known for.
Moreover, it will be a good opportunity for fast food business such as Burger King, McDonald, and Subway. Due to the fact that people have to eat all of the time, Costco could allow those fast food companies to rent their space. As a result, renting fees could become another way for Costco to make