Ricardo is the owner of Mex Magic, a chain of restaurants serving reasonably priced Mexican food with fresh, healthy ingredients. He has discovered that the rising price of avocados and some of the other fresh produce the restaurants use has been driving down profits. Customers have come to expect high-quality ingredients for a low price, and Mex Magic's marketing research has shown that the upscale interior of the stores, along with its great customer service, are a big draw. The feedback has also shown that a large percentage of the customers come with children. If Mex Magic is be truly responsive to its market environment while maximizing profits, Ricardo should
A) adapt to the rising cost of avocados by raising the price of guacamole on the menu.
B) reduce the wait staff, as well as the number of cashiers, in order to lower payroll costs.
C) add child-friendly entrees that include fries or chips instead of guacamole.
D) consider removing menu items that rely heavily on fresh ingredients.
E) expand the bar so as to draw in more adult customers, with or without children.
Correct Answer:
Verified
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