Mike Kelley Kyle Kramer Hr.

9 Melzer Taco Hut Case Study Case Problem We must create a six item dollar menu for the restaurant chain Taco Hut. Due to a shift in the economy and a decrease in sales, Taco Hut is trying to boost its profits while low cost menu options for customers. Target Market Demographically: Parents between the ages of 25-40 with an average of two children Psychographically: Price sensitive people with fast food service need may also want to bring children to a fun oriented restaurant AHORRO DE MENU MENU Nachos Bean Burrito Cinnamon Crisps Small Soda Taco Taco Deluxe ORIGINAL RETAIL $1.09 $1.09 $0.89 $1.19 $1.09 $1.49 COST $0.27 $0.27 $0.22 $0.30 $0.27 $0.37 DOLLAR PRICE $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 PROFIT $0.73 $0.73 $0.78 $0.70 $0.73 $0.63

Factors Considered When Determining Price There were a number of factors considered when determining the price of the of the six item menu. It was decided to make it a dollar only menu; therefore products with a low production cost were placed on the money. In addition to this, Taco Hut needed to stay competitively priced among its competitors, so the dollar menu further exemplifies the need for this type of menu. Lastly, the demand for cheap yet good tasting fast food has increased as the lifestyles of the target market move at a faster pace and the economy continues to suffer. Why These Items Will Attract and Appeal to the Target Customer It is believed that the six item dollar menu will attract and appeal to the target customer because primarily, the customer will be exercising frugality and will still receive a good tasting product. As previously mentioned, the lifestyle of the target market customers is fast paced and if families come to eat, parents will most likely be looking for ways to spend less money but still provide a good tasting and quality experience for themselves and their children.

What Customer Needs Will Your Products Fill? The products on the six item dollar menu will fulfill a variety of customer needs. The obvious need is hunger. Consumers will be able to purchase a main meal, small drink, and desert for $3.00. This supports a consumers need to save money and practice frugality in the struggling economy. Also, with the addition of this menu to the companys offerings, the speed of service will not be affected and will remain very efficient. As consumers lead a fast paced lifestyle, they will need fast service that does not hinder any plans on their daily agendas.