Question

Two restaurants are competing against each other. One restaurant is supply-constrained and one restaurant is demand-constrained. From this information, what are five observations you can infer about the competition between these two restaurants?

Answer 1

In this scenario two restaurants are competing with each other in their own ways:

One of the restaurants is competing in a supply-constrained method which means the company has the ability in the market to deliver the current requirements of the customers.

From a hotel point of view, customers have demands which means in terms of food production the supply here is met with the capability of delivering the new products

on time as and when required by the customers.

Whereas the other restaurant competes is measured in terms of the effort put forward and the output of the effort together hold the key in fulfilling the demand constraints of the customers.

Herewith the increase in demand increases the output and employment opportunities in business to meet their needs.