The Pricing Strategies of Fast Foods vs. Restaurants
The Pricing Strategies of Fast Foods vs. Restaurants
Dateesha L. Cavin
Webster University
28 April 2011
Abstract
This paper explores the difference in pricing strategies of Fast Food vs. Restaurants. Fast food restaurants compared to sit-down restaurants are exceedingly popular because they prove to fit comfortably in our active, modern day lives. Today, many people eat fast food instead of cooking meals at home. The reason for this is that many of us are constantly busy with our daily responsibilities and we are continuously on the go. We believe that we have a limit of time, and fast food restaurants are at the maximum of convenience for everyone at any hour. You can pretty much find a fast food restaurant at every corner of a street, and most of these establishments usually include a drive through. With this they were able to introduce a way to eat food without knives, forks or plates, and most meals can even be eaten while behind the steering wheel of a car. This paper examines various types of pricing strategies used by the Fast Food Industry to gain sales over restaurants.
Pricing Strategies of Fast Foods vs. Restaurants
The fast food industry has a history of more than 100 years. Because it has an early start, it has established a model of standards of technology, capital, brand, service, the company culture and the image design, which have distinctive features. Some authorities point that usually the price of the fast food is two and half or even three times more expensive than it its cost to the company. In the global market, the fast food has a fierce competition with numerous companies. The objective of this paper, therefore, is to review whether the pricing and promotion strategies of fast food firms increase the overall demand for fast food, or merely allocate market share among competing firms as compared to restaurants.
In doing so, we take into account many unique features of fast food demand. First, nutritionists, economists and marketing
Dateesha L. Cavin
Webster University
28 April 2011
Abstract
This paper explores the difference in pricing strategies of Fast Food vs. Restaurants. Fast food restaurants compared to sit-down restaurants are exceedingly popular because they prove to fit comfortably in our active, modern day lives. Today, many people eat fast food instead of cooking meals at home. The reason for this is that many of us are constantly busy with our daily responsibilities and we are continuously on the go. We believe that we have a limit of time, and fast food restaurants are at the maximum of convenience for everyone at any hour. You can pretty much find a fast food restaurant at every corner of a street, and most of these establishments usually include a drive through. With this they were able to introduce a way to eat food without knives, forks or plates, and most meals can even be eaten while behind the steering wheel of a car. This paper examines various types of pricing strategies used by the Fast Food Industry to gain sales over restaurants.
Pricing Strategies of Fast Foods vs. Restaurants
The fast food industry has a history of more than 100 years. Because it has an early start, it has established a model of standards of technology, capital, brand, service, the company culture and the image design, which have distinctive features. Some authorities point that usually the price of the fast food is two and half or even three times more expensive than it its cost to the company. In the global market, the fast food has a fierce competition with numerous companies. The objective of this paper, therefore, is to review whether the pricing and promotion strategies of fast food firms increase the overall demand for fast food, or merely allocate market share among competing firms as compared to restaurants.
In doing so, we take into account many unique features of fast food demand. First, nutritionists, economists and marketing
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