menu costs

(noun)

The cost to a firm resulting from changing its prices.

Related Terms

Examples of menu costs in the following topics:

  • The Costs of Inflation

    • The costs of inflation include menu costs, shoe leather costs, loss of purchasing power, and the redistribution of wealth.
    • In economics, a menu cost is the cost to a firm resulting from changing its prices.
    • The name stems from the cost of restaurants literally printing new menus, but economists use it to refer to the costs of changing nominal prices in general.
    • Other costs of high and/or unexpected inflation include the economic costs of hoarding and social unrest.
    • The cost to a restaurant to change the prices on menus is incurred even with low and expected inflation.

  • Arguments For and Against Inflation Targeting Policy Interventions

    • High levels of inflation eat away at savings, increase menu costs and shoe-leather costs, discourage lending, and may create an inflationary spiral that leads to hyperinflation.
    • On the other hand, some argue that the costs of inflation targeting exceed the benefits.

  • Survival

    • The both closed down locations in less-favorable neighborhoods and added more products to their menus.
    • Firms rely on price to cover the costs of production, pay expenses, and provide the profit incentive necessary to continue to operate the business.
    • If revenue falls below cost for a long period of time, the firm cannot survive.

  • Digital Surveys

    • Questions can be displayed with check boxes, pull down menus, pop up menus, help screens, or submenus
    • This method is also cheaper to use, because there are fewer costs incurred from buying paper, printing materials or paying postage.

  • Differences Between Strategic Planning at Small Versus Large Firms

    • They have different menus in China than in France due to differing consumer tastes.
    • Large firms such as McDonald's often achieve better scale economies and thus can pursue low-cost strategies.
    • In most cases, low-cost strategies require substantial economies of scale.

  • Delivering Excellent Service Quality

    • Before being handed the standard menu, the owner recommends a dish that is based on the current availability of the freshest ingredients, careful to avoid the customers' dislikes, and with a good sense of what the customers might prefer on that day, given the time of year, and given the weather.
    • She is able to adjust the menus to meet their requirements and draw more customers.
    • This table shows the benefits and costs of the customer value proposition.

  • Customer Service as a Supplement to Products

    • Customer support refers to a range of services including assisting clients to make cost effective product choices and getting the most from their purchases.
    • Another example of automated customer service is touch-tone phone, which usually involves a main menu and the use of the keypad as options, for example "Press 1 for English, Press 2 for Spanish. "
    • The focus must be on those KPIs that will deliver the most value to the overall objective, for example, cost saving and service improvement.

  • Trends in Franchises: International Adoptions

    • The franchisee, as a result, is incurring a substantial cost.
    • As of 2010, opening a McDonald's franchise could cost anywhere from around $1 million to around $2 million (USD).
    • McDonald's, KFC, and a variety of other small food chains have distinctly different menu items depending on where in the world you are when you visit one of these chains.

  • Customer Wants and Needs

    • The search for alternatives is influenced by such factors as time and money costs, how much information the consumer already has, the amount of the perceived risk if a wrong selection is made, and the consumer's disposition toward particular choices.
    • Surveys of customers might claim that 70% of a restaurant's customers want healthier choices on the menu, but only 10% of them actually buy the new items once they are offered.

  • Sales: the essential rim of the wheel

    • Micro-financiers (Do a Google search at www.google.com using the key word "micro-finance" to find potential micro-financiers that you may want to research as one method of financing your startup costs. )
    • Family traditionally is the first place to look for funds to pay for some of the startup costs associated with a new venture.