Lindsey Brentwood is the manager of a fine dining restaurant chain that serves its guests a variety of traditional Southern dishes prepared with the very finest of ingredients. It is most famous for its upscale version of Chicken Fried Steak. At Lindsey's restaurant, this dish (beef steak, seasoned, breaded, and then pan fried) is prepared using USDA Prime rib-eye steak. As the price of rib-eye has increased, Lindsey’s food cost percentage on this item has risen dramatically. Currently, Lindsey is considering whether the selling price of this dish should be increased significantly or if she should take other steps to help reduce her overall product cost percentage. 1. What issues should Lindsey consider prior to making this decision? 2. What alternatives to raising prices do you think are available to Lindsey?
Lindsey Brentwood is the manager of a fine dining restaurant chain that serves its guests a variety of traditional Southern dishes prepared with the very finest of ingredients. It is most famous for its upscale version of Chicken Fried Steak. At Lindsey's restaurant, this dish (beef steak, seasoned, breaded, and then pan fried) is prepared using USDA Prime rib-eye steak. As the price of rib-eye has increased, Lindsey’s food cost percentage on this item has risen dramatically. Currently, Lindsey is considering whether the selling price of this dish should be increased significantly or if she should take other steps to help reduce her overall product cost percentage.
1. What issues should Lindsey consider prior to making this decision?
2. What alternatives to raising prices do you think are available to Lindsey?
Step by step
Solved in 2 steps
