MGMT 1000 Lecture Notes - Lecture 9: National Restaurant Association, Gross Domestic Product, Inflation

• School: University of Guelph
• Department: Management
• Course: MGMT 1000
• Professor: Kathleen Rodenburg

Document Summary

Main body of the report: macro environment. Evidence: consumer spending: when consumer spending is high, consumers spending more than saving. When consumer spending is low consumers are only spending money on necessities: food inflation: food inflation can damage a restaurant"s profit margin, causing a restaurant to adjust menu pricing and pass the cost on to customers. This will cause a decrease in sales as more customer believe the marginal cost of dining out is too high: increase in disposable. Income: an increase in disposable income allows consumers to spend more money on want such as dining out: unemployment: when unemployment rate is high people have a tight budget, and will not dine out as often. When unemployment is low people have money to spend and will likely spend it at their favorite restaurant: labor costs: as labor costs increase, restaurants must increase their prices to keep up with their expenses. During the start of the 2008-2009 recession, the.