Why is competition so fierce in the restaurant industry?
A)entry costs are low
B)buyers have much bargaining power
C)suppliers have much bargaining power
D)there is less regulation

Question

Quizplus · Accepted Answer

The low entry costs in the restaurant industry make it easier for new businesses to enter the market, resulting in increased competition. Lower entry costs mean that there are more players in the market, which makes it difficult for established businesses to maintain their market share. This leads to fierce competition within the industry.  The other options, such as buyer bargaining power, supplier bargaining power, and less regulation, have less impact on the competitiveness of the restaurant industry compared to low entry costs.

Why Is Competition So Fierce in the Restaurant Industry