Restaurant A offers a limited number of food categories which are similarly priced. Restaurant B offers a broad menu which consists different starters, mains, side dishes, and desert options which are priced differently.

Taking into consider how these foods are prepared in restaurant A & B, explain to me:

1.Why these two restaurants price their product differently?

2.How are their cost structure influenced by the diversity of food offerings?

3.Explain the strategies suitable for both restaurants.

E.g.

Low-cost leadership

Market niche strategy based on lower cost

Broad differentiation strategy

Market niche strategy based on differentiation

Best-cost provider