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Funny, I just wrote a reply to another post which explains exactly what you wrote. > In SF, for example, fine dining is doing well, while the mid range is slow
by Mikeb85 8y ago
Funny, I just wrote a reply to another post which explains exactly what you wrote.
> In SF, for example, fine dining is doing well, while the mid range is slowly failing and being replaced by fast casual, where they focus on fast turnover.
It has to do with readily available substitutes for a given price point affecting elasticity of demand. The type of food offered by a casual dining concept can be replaced by fast-casual, whereas higher end food has relatively inelastic demand, because it has fewer substitutes.
- dragonwriter 8y ago> The type of food offered by a casual dining concept can be replaced by fast-casual, That's mostly not a change in type of food, just front-of-house service model. And casual and fast-casual both focus on turning tables, fast casual just has counter ordering (and often counter service for drinks) rather than full table service.
- Mikeb85 8y agoYes, hence them being substitutes.