Economics for Business Essay

Submitted By best100
Words: 6365
Pages: 26

Final Project Paper
The full-service food industry has been around for many years. The food services and drinking establishments include all kinds of restaurants, from casual fast-food eateries to formal, elegant dining establishments, and is one of the most convenient services in the world. For purposes of this paper, the full-service food industry will be the focus. This includes full-service restaurants only. A full-service restaurant is where one can go to enjoy being served a meal by a waiter or waitress. The full-service food industry is thriving in today’s economy and will continue to thrive in the future.
The food industry in general “employs 12.5 million workers, making it the country's largest private-sector employer and employment opportunities will grow as it is estimated that this industry will add 1.9 million jobs by 2016” (Pennsylvania State University 2003). The full-service food industry is different from the fast food service. Full-service restaurants account for about 39 percent of establishments and cater to people who order, are served, and consume their food while seated, and then pay after eating. Full-service restaurants offer more menu categories, including appetizers, entrees, salads, side dishes, desserts, and beverages, and a variety of choices within each of these groups (BLSUSDL, 2005).
Composition of Inputs
The full-service food industry has many aspects to it. One of the most important aspects is the composition of inputs. Some of the inputs of the full-service food industry are pricing, labor, marketing, and many others. These inputs allow full-service establishments to control the output that is demanded by consumers.
Full-service establishments set prices based on the costs that they incur for the goods they use. These goods come from other markets, farms, and imports. Because of this, restaurants must set their prices high enough so that they pay for the cost of the goods and make a profit, whether it is small or large.
The labor force in this type of industry is very important. The full-service food industry is not just about serving the consumers. Restaurants have to make sure that the goods they ordered arrive when needed. This means that workers must drive the trucks that deliver the goods. The full-service food industry also needs workers to prepare the product when it is delivered. This means that restaurants must have chefs and cooks available to turn these goods into the dishes that the consumers order. Restaurants also need wait staff to serve the food. Without the wait staff, the restaurant has no one to cater to the needs of the customer when they come to dine out. Due to these needs, the full-service food industry must have a sufficient labor input.
Marketing is also an important input in this industry. All companies have marketing strategies to sell the goods they produce. The food industry is no different. Without proper marketing, restaurants will not be able to reach the consumers to tell them about their establishment and the cuisine that is offered. If anyone has ever seen commercials for Outback, Red Lobster, or the Olive Garden, then they are seeing a form of marketing. These restaurants must make their establishments look appealing so that consumers will dine there. The proper marketing makes this possible. The full-service food industry must have a sufficient marketing structure to be able to survive the future trends.
The inputs mentioned above are just a few that relate to the full-service food industry. These inputs are necessary for the industry to be able to keep up with current and future trends. Without them, the industry could suffer. Market of Industry The full-service food industry exists in a perfectly competitive market. With so many different options for dining, business owners are forced to stay up to date on the latest and most tasty dishes. In Baton Rouge alone, there are multiple full-service…