Answer to Question #267724 in Marketing for ann

Question

why fine dining establishments must have very high markups over the cost of

their foods. Is it possible to be a low-priced fine dining establishment?

Answer 1

There is no defined price criterion for fine dining or low-end restaurant places. The high fine dining prices do not imply that the cuisine is superior to that of a low-priced low-end restaurant. Perhaps the proprietor of the ostensibly fancy dining business is looking to earn a quick buck or two. They are also attempting to recuperate the money spent on designing the restaurant and outfitting the kitchen. There are good, poor, and indifferent restaurants, whether fancy dining establishments or low-end or low-priced establishments.