The hamburger chain Smashburger differentiates itself from other fast-food restaurants in the way it prepares its burgers:

Question:

The hamburger chain Smashburger differentiates itself from other fast-food restaurants in the way it prepares its burgers: “Every burger at Smashburger starts as a fresh, never frozen ball of all-natural beef. As soon as you order, we smash that fresh ball of beef on a hot grill to sear the burger and seal in the juiciness.” When Scott Crane became president of the firm in 2007, it had only two restaurants. When he left 10 years later, the chain had grown to 330 restaurants in 35 states. An article in the Wall Street Journal describing Crane’s time running Smashburger notes that during the 2007–2009 economic recession, “Americans were looking for more value when they dined out. Also, real-estate prices had gone down, so Smashburger was able to expand in a way that wouldn’t have been affordable before.” Is it ever easy to determine whether a firm making an economic profit is doing so because of the skills of the firm’s managers or because of luck? Briefly explain by discussing the situation of Scott Crane at Smashburger.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 9780135957554

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

Question Posted: