Current Market Conditions and Competitve Analysis

Self- explanatory.

Current Market Conditions Competitive Analysis

Starlenia Amos, Nancy Gobbell, Sarah Goodman, Matthew Smith, and Justin Stapert

ECO 365

April 14, 2014

Michael Blakley

Introduction

History

Factors Affecting Demand, Supply, and Equilibrium

Issues or Opportunities

Factors Affecting Costs

There are several factors affecting the costs of Taco Bell serving a breakfast selection. Taco Bell will have to hire additional labor to meet the demands of the new schedule. The restaurant did not open before lunch, so they will need additional employees to work the additional hours required for breakfast time. They will also need to train the employees to cook the new items that are on the menu. The employees may have been trained to cook the existing items on the lunch and dinner menu. With the addition of new menu items for breakfast, the staff will need to be retrained. There will also be a need to train the new staff to operate the front counter and drive through window as well. This will be additional cost on the front end, as the training will end.

Taco Bell will also need to invest some money into the supplies for the new items on the menu. This includes ingredients to prepare the food, as well as the wrappers to package the food. Taco Bell will also need the restaurants to open for longer periods of time. This will increase their overhead costs as well. This includes the electricity and maintenance on the equipment. Since the equipment will be used for more hours each day, it will need to be serviced more often. Taco Bell will also need to consider extra funds for advertising. They will need to market the new breakfast line and spread the word to new and existing customers about the new product and hours.

The fixed costs to be considered are salaries of management and insurance. Management force would need to be increased at each location due to the longer hours. The restaurant would also need to...