Case Study Of Wendy's Chili

Register to read the introduction… This concept worked prior to the 1980’s economic down turn, as it was different from the rest. Customer’s taste changes often, so the limited menu is not flexible to their changes. What if the customer wanted chicken, fish or vegetarian; or the customer decided they wanted to eliminate bread or wanted to eat local produce? Wendy’s limited menu would not be able to adapt to this.
In 1979, there were a few factors that affected the restaurant industry, increases in: inflation and energy, wages, and beef. Their fresh ground beef and house made patties would most likely cost more than their competitors’ premade frozen patties. Wendy’s counter this by offering: chicken, Garden Spot salad bar, and kid’s menu (Robinson & Davis, 2000, pp. 121-124). The menu was no longer limited. In addition to one of many problems Wendy’s faced, was trying to figure out the true cost of the chili bowl because knowing the exact cost will help executives determine whether to keep or eliminate this product.
The …show more content…
T. (2010). Cost accounting: A managerial emphasis (5th Cdn ed.). Toronto, Ontario: Pearson Prentice