Question
Suzie is the owner of Tran's Good Eats, a downtown restaurant. She has several entree dishes that feature chicken, pork and beef. The pork and
Suzie is the owner of Tran's Good Eats, a downtown restaurant. She has several entree dishes that feature chicken, pork and beef. The pork and beef dishes are priced higher than the chicken dishes, however, they have a lower contribution margin. Recently, the prices of pork and beef have gone up, further lowering the gross margin on those dishes. The owner has thought of increasing the prices on the entrees, but feels that Good Eats will no longer be competitive with the other local restaurants.
Describe some pricing and/or business strategies that Suzy can implement in her restaurant. Explain and provide rationales for the possible strategies.
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