Question

Assume you are the new manager at Cheesecake Factor in San Francisco. For each of the two components of revenue for hospitality businesses (Q and P) identify one specific action you could take to increase that component. For example, to improve quantity (Q) I would add additional patio tables at the restaurant to increase the number of seats (don’t use that one). Comment on how understanding the relationship between those components (Q and P) can make you a better manager.

Answer 1

This is cheese cake business. The Q and P is two main component in the revenue making procedure. here Q is referred as the Quantity of Incredients that applied to make the cake for example Patio.. and P is the Price. When the quantity of the Incredience adding more the Cost of the cake will improve accordingly the Price of the cake should increase other wise the profit / revenue will reduce. And if the quantity of Patio reducing they can sell the cheese cake with a discount rate and this will help to compete in the market.