Answer to Question 1
A limited menu restricts the number of customers. If all the restaurant offers is salads and a party of four is eating out together, one person in the party who does not like salads can lose the restaurant four customers. For this reason fast-food operations tend to start out with a basic product and as the concept moves through the life cycle, add items to the menu to attract a larger base of people. A limited menu allows people to make a very quick decision as to what to eat. This may appeal to customers who do not want to make extensive decisions at mealtimes. It also speeds customer turnover. A limited menu also means less waste. For every item on the menu, there is a waste factor. It may occur as spoilage in storing; it may be that too much is made of a particular item and the remainder must be thrown out. Thus the more items on the menu, the more items will have to be ordered, stored, issued, prepared, and served. Inventory costs will be higher, as will waste costs. The major advantage of an extensive menu is that there is a greater chance that one or more items on the menu will appeal to more people, thus increasing the menu range.
Answer to Question 2
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