Question

Which among the following strategies is used by fast-food restaurants to reduce costs?

A) Increase advertising via the Internet.
B) Allowing the customer to play an active part in the service process.
C) Increase prices.
D) Increasing menu items to cater to varying tastes.

Answer 1

Fast-food restaurants often reduce costs by increasing menu items to cater to varying tastes, attracting a larger customer base and achieving economies of scale.

Step-by-step explanation:

Fast-food restaurants often use the strategy of increasing menu items to cater to varying tastes in order to reduce costs. By offering a wide range of menu items, they can attract a larger customer base and increase sales. This allows them to achieve economies of scale, which can help reduce costs. For example, if a fast-food restaurant is able to purchase ingredients in bulk for a larger menu, they may be able to negotiate lower prices with suppliers.