Question: Interestingly, the restaurant business does not typically offer discounts for large groups. That is, a restaurant generally charges the same prices to those at a

Interestingly, the restaurant business does not typically offer discounts for large groups. That is, a restaurant generally charges the same prices to those at a table for two as it would for those at a table of 22. In the hotel business, discounts are typically given for group sales of 10 room nights or more. Why do you think these two related industries approach pricing so differently?

Step by Step Solution

★★★★★

3.30 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Restaurant profit margins are traditionally smaller tha... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

669-4-B-G-M (667).docx

120 KBs Word File

Students Have Also Explored These Related General Management Questions!

Economic Rent and Profiting from Entrepreneural Skill: Suppose, as in exercise 14.4, that you are operating a hamburger restaurant that is part of a competitive industry. Now you are also the owner,...

For many businesses in today's belt-tightening economy, decisions on pay need to be strategic to ensure that employees are treated fairly and to ensure that businesses can remain viable. This...

Write a paper examining perfect competition in the value-menu fast-food restaurant business. Address the following questions in your paper: 1. What are the characteristics of perfect competition? Why...

Revenue recognition Heavenly Tours General background: Heavenly Tours (HT) was the brainchild of four college friends: Bart, Ava, Carla and Dave. They wanted to create a one-stop, high-touch,...

I am working on my group project for the class teaching by prof. Karen Kukla. My group chose the business EduXperience . There are 3 part of the project: and I need help for question 2. Description...

using this formart make agood and nice report from this information Table of Contents: Introduction Methodology Food-Based Dietary Guidelines in South Africa 3.1 Overview of South African Dietary...

What is the WACC for Cheesecake Factory as of 12/29/09 (using the Capital Asset Pricing Model to determine the cost of equity)?At that time, Cheesecake Factory's stock had a Beta of 1.25 and used a...

CASE 32 Panera Bread Company (2010): Still Rising Fortunes? Joyce P. Vincelette and Ellie A. Fogarty BREADESSENTIAL AND BASIC, but nonetheless specialhas transcended millennia. A master baker...

You will write a 1,000word essay in current APA format that focuses on your background in corporate taxation Explain your experience, and include examples of research tools you may have used to solve...

Immanuel Kants stringent theory of morality allows for no exceptions. Kant believed that telling a lie, even a white lie, is a violation of ones own dignity. If your friend were hiding inside your...

Is a belief in the virtues of commitment based on an unrealistic unitary view of employment relationships?

Restaurants have observed that large parties (eight or more) leave a lower average tip than smaller parties. Identify the effect, which also makes it more difficult to reach global environmental...

Explain the difference between fixed and variable over head expenses.

Compare and contrast the six common dimensions of design quality. Provide an example of each dimension.

If quality means different things to different people, how can you measure it?

Problem 7-12 Future Value of an Amount Saved [LO5] You estimate that you can save $10,200 by selling your home yourself, rather than using a real estate agent. What is the future value of that amount...

The stock price of Heavy Metal (HM) changes only once a month: either it goes up by 20% or it falls by 16.7%. Its price now is $40. The interest rate is 1% per month. a. What is the value of a...

ask the users for 3 numbers and print out all three numbers in descending order write code in little man computer