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Pastimes : Where the GIT's are going
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To: Ken Adams who wrote (132611)1/19/2007 2:57:03 PM
From: TimF  Read Replies (1) of 225578
 
Their profit margins would rise considerably if they'd just knock about a buck off the price and bring you half the order.

Not unless there unit sales increased considerably.

If you pay extra for the food that winds up getting thrown away then it helps their profit margins. The margins don't care whether you eat the food or not. Serving smaller portions would slightly lower their food costs but perhaps not enough to make up for the lower charge. Most of their costs don't change much with the slightly larger portions, its not like they have to hire more people, or increase the size of the restaurant.

Smaller portions at lower prices would help their bottom line only if it brings more people in.
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