Author Question: How would market basket analysis help an operator improve the menu? What will be an ideal ... (Read 55 times)

KimWrice · **on:** Aug 10, 2018

How would market basket analysis help an operator improve the menu?

What will be an ideal response?

Question 2

Explain the problems facing restaurants when it comes to deciding how much inventory to stock.

What will be an ideal response?

olderstudent · **Reply #1 on:** Aug 10, 2018

Answer to Question 1

(Note that these are suggested answers. Students may arrive at different and yet still correct conclusions)
MBA can help identify potential combos that would enhance profitability
MBA can help restaurateurs decide whether their secondary items have high or low price resistance
Areas for potential suggestive selling can be identified

Answer to Question 2

The restaurant must balance the need for it to have sufficient supplies on hand so that it will not run out of items with the fact that inventory costs money. The more items on hand for a period of time, the more money the restaurant ties up. Slow turnover indicates that inventory levels are too high. In addition to the money tied up, the longer items are kept, the greater the chance of spoilage.