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,†¦show more content†¦There is a specialized kids menu, which usually, comes with toys that change periodically, therefore, enticing children to continue returning for more. Most of the time, the products of the fast food industry are inexpensive, yet delicious. For fewer than five dollars you can usually get a meal that’s satisfying and filling. This is fitting for people who don’t wish to spend much money and even a child, it would seem, could afford their own meal at such low prices. When you can find and easy, filling, convenient and inexpensive meal at every street corner, fast food seems like the logical choice to cut out the stress in today’s hectic world. From the elasticity of the demand, it is less elastic. So it means there is some stability between the change in the demand and the change in the price. It is well documented that portion sizes for foods purchased at fast food places and restaurants have increased sharply over the past two decades (Young et al., 2002). Therefore Fast food places have a fixed group of consumers, a stable volume, and type of consumption. Fast Foods rank top in the output value and the size in the global market. Popular fast foods like McDonald’s branches spread over more than 121 countries and regions. So it is still hopeful to expand its market share with the advantage of its brand. During the financial crisis, the social environment undertakes the crucial change which leads toShow MoreRelatedMarket Strategy for Kfc Japan1245 Words   |  5 PagesMarket Strategy/ Focus Marketing strategy is a method of focusing an organizations energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firms marketing goals, and explains how they will be achieved, ideally within a stated timeframe. 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