Supply & Demand
Supply and Demand
The supply and demand process can be somewhat difficult and knowing the fundamental factors on both sides is essential to business success. Focusing on the Chick-fil-A fast food chain, there are factors that are a determinant to supply and demand. A technology change, the price of substituting goods, population changes and consumer preferences all impact business operations.
Technology changes within Chick-fil-A restaurants will allow locations to run efficiently and assist in quality in which goods and services are offered. One feature in particular the restaurant offers are an online food ordering through their company website. This feature allows the company to stay current with technology, reduce waiting time for hungry customers and, provide quicker response time for walk-in and drive-thru customers.
Substituting the price of goods is another important factor in a business operation. Corporate must research and evaluate similar goods that are available at a lower price to help reduce supply resources and increase profits. This change could affect the quality of goods. It is necessary to ensure the substitutions used are equally comparable, increasing the restaurants’ supply curve and keeping menu items “in demand”.
Population change and choosing accessible restaurant locations aid in the ability to keep Chick-fil-A visible and in demand with customers. Electing to expand operations from mall locations to more freestanding buildings add convenience and encourages new customers. In addition, it increases the growth of local communities.
Being a consumer’s preference is crucial to continued success. The market for menu offerings can change based on what’s in season, what’s popular and how a restaurant advertise and promote their goods. For example, promoting a “tasty” bar-b-que chicken sandwich during the summer would persuade customers to try the new menu item, which would increase the demand curve.
To keep a constant
The supply and demand process can be somewhat difficult and knowing the fundamental factors on both sides is essential to business success. Focusing on the Chick-fil-A fast food chain, there are factors that are a determinant to supply and demand. A technology change, the price of substituting goods, population changes and consumer preferences all impact business operations.
Technology changes within Chick-fil-A restaurants will allow locations to run efficiently and assist in quality in which goods and services are offered. One feature in particular the restaurant offers are an online food ordering through their company website. This feature allows the company to stay current with technology, reduce waiting time for hungry customers and, provide quicker response time for walk-in and drive-thru customers.
Substituting the price of goods is another important factor in a business operation. Corporate must research and evaluate similar goods that are available at a lower price to help reduce supply resources and increase profits. This change could affect the quality of goods. It is necessary to ensure the substitutions used are equally comparable, increasing the restaurants’ supply curve and keeping menu items “in demand”.
Population change and choosing accessible restaurant locations aid in the ability to keep Chick-fil-A visible and in demand with customers. Electing to expand operations from mall locations to more freestanding buildings add convenience and encourages new customers. In addition, it increases the growth of local communities.
Being a consumer’s preference is crucial to continued success. The market for menu offerings can change based on what’s in season, what’s popular and how a restaurant advertise and promote their goods. For example, promoting a “tasty” bar-b-que chicken sandwich during the summer would persuade customers to try the new menu item, which would increase the demand curve.
To keep a constant