Check Your Understanding I Fast Food Discount Wars: The Battle of the Chicken Nuggets ~ Q2 | ;| 1 av ten 1 The chef decides it is time to lower prices to bring in more guests and stay g'. competitive with the local restaurants. If the selling price of the most popular burger is lowered by $1.00, what must occur in order to continue being protable? O at Food cost must remain the same, labor costs must decrease, and guest check average must remain the same. O 3. Food cost must increase. labor costs must decrease, and check average must remain the same C) I; Food cost must decrease, labor cost must decrease, and check average must increase (i) D. Food cost must decrease. labor costs must increase, adgut check average must remain the same Try again, If the average selling. price declines, food cost and labor cost must decrease appropriately or the average guest check must increase to offset the additional labor costs, n the Life of Chef Jose Martinez Check Your Understanding / Fast Food Discount Wars: The Battle of the Chicken Nuggets - Q1 1 try left Many hotel food and beverage operations compete with local fast food restaurants for the dining dollar of their guests. As travel costs increase, guests often expect free or low-cost dining options and when those are not available, they leave the hotel and look for a brand they know and trust. As a restaurant manager in a hotel competing with a chain such as Mcdonald's or Burger King, what could you do in your restaurant to compete against the fast food competition, while remaining profitable? A. Only serve breakfast and lunch thereby reducing food and labor costs O B. Partner with a radio station to run promotions in the restaurant designed to bring in new business C. Explain to the guests that you have higher costs than the area restaurants and you need their dining dollars D. Offer a low cost, all you can eat buffet during the week Try again. Partnering with a radio station may provide a short-term solution but it does not address the larger issue of building a solid sustainable business. Submit