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You are the manager of a Sushi buffet restaurant. The current price for all-you-can-eat sushi is $21++ per person during the lunch period. On the entrance door, there is a sign warning of no wastages of food as wastages would be charged. You have done your research as a most adults would eat about 6 to 7 plates of sushi of about 2 pieces of sushi per plate during lunch. The menu price per plate is $5 per plate if ordered separately from the buffet. The lunch period is 90 min per table. The wastage to be charged would be equivalent to the $5 per plate.
You decide to improve the customers’ traffic into the restaurant and increase profits by having a promotion. You propose that the buffet price would not be changed but offer each patron a piping big bowl of ramen noodles for free as soon as the patrons are seated. The promotion attempts at analyzing that patrons would most likely not wait for the noodles to get cold to eat them.
In your opinion, identify and explain the economic sense that is being applied here for the sushi buffet restaurant?
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You are the manager of a Sushi buffet restaurant. The current price for all-you-can-eat sushi is $21...
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