What other factors besides the base selling price established by pricing formulas must operators consider when setting menu prices

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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What other factors besides the base selling price established by pricing formulas must operators consider when setting menu prices? Use an actual restaurant as an example to defend your opinion.

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Step 1 Introduction

The setting up a restaurant is quite expensive, and a large amount of investment is required with lot of organisation and operational structure design and layout which is exclusive of the base selling price at restaurants in menu.

The main cost as base selling price includes : 

1) The making of the food.

2) The restaurant ambience

3) The cost incurred while setting up the restaurants 

basically all these are inclusive of base selling price while setting up the menu.

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