Quote:
Originally Posted by FlyingScot
You ask a different question than I opined on. My post simply noted that as employment increases, labor costs rise (hopefully!), and that causes other prices, such as cheeseburgers to rise as the cost of providing those cheeseburgers increases.
Back to your question--it depends on the business. If I was in a business that did not depend upon price for long term relationships and goodwill, such as running a hedge fund, then yes, I would crank prices to whatever the market would bear.
But a restaurant seen to be cranking up prices risks serious blowback, as is often seen on this board. So no, I would not increase price as far as a popular restaurant might need to in order to eliminate the line.
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You are correct for a normal restaurant open year round looking for loyal customers especially in the off season, but Sawyers is only open from Memorial Day to Labor Day and their clientele are mostly vacationers staying in the camp grounds or motels looking for something fast but NOT fast food chain meals and some ice cream. This allows them to raise prices without a lot of blow back as most customers do not return at all the following year because they vacation other places or if they do return they have short fond memories of eating at an old fashion drive in and having ice cream after.