if revenue ended up exactly the same, how could a business (like chikfila) benefit from increasing their…

if revenue ended up exactly the same, how could a business (like chikfila) benefit from increasing their prices? to provide some context via example, lets say chikfila serves 100 customers at $10/person. revenue = $1,000. they choose to increase their prices to $20/person, and they only lose 50 customers. revenue = $1,000. why might this still be a good idea for chikfila? or, trick question its not a good idea.

if revenue ended up exactly the same, how could a business (like chikfila) benefit from increasing their prices? to provide some context via example, lets say chikfila serves 100 customers at $10/person. revenue = $1,000. they choose to increase their prices to $20/person, and they only lose 50 customers. revenue = $1,000. why might this still be a good idea for chikfila? or, trick question its not a good idea.

Answer

Brief Explanations:

Increasing prices while maintaining revenue can reduce costs associated with serving a large number of customers, such as labor and ingredient - handling costs. Also, it may attract a different customer segment willing to pay more for a perceived higher - quality or exclusive experience.

Answer:

It can be a good idea because it may reduce operational costs and attract a more premium customer base.