The Cost-Benefit Matrix of the Restaurant Industry

The cost-benefit matrix can be used to analyze an industry and the position of different firms in that industry. The industry I have chosen to study this concept is the restaurant industry. At the low end of the industry in terms of cost are quick service restaurants. They require little effort to find and most consumers do not expend much effort on the purchase decision. The product costs are low. Within this category it is easy to find example of low benefit outlets and ones with higher benefit. A low benefit outlet would be a fast food restaurant whose food is neither particularly appetizing or healthy lets pick on Arbys but there are a lot of contenders. Such a competitor needs to do two things in order to compete. The first is that it needs to have a very low cost, and the second is that it needs to make the purchase decision as easy as possible, perhaps by having more locations so that consumers never need to travel to go there. 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