Question
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
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
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