Stephen King is the owner of a 100-seat capacity restaurant in a mid-sized city and has significant restaurant experience but often struggles with decisions about pricing. Over the years however, he's developed a simple method where he applies a straight 35% to the cost of an item as his retail price. Stephen always knows the various cost elements of his entrees, side dishes, and beverages and simply multiplies the 35% times the cost to arrive at the final price to charge guests. What type of pricing is Stephen utilizing?

Stephen King is the owner of a 100-seat capacity restaurant in a mid-sized city and has significant restaurant experience but often struggles with decisions about pricing. Over the years however, he's developed a simple method where he applies a straight 35% to the cost of an item as his retail price. Stephen always knows the various cost elements of his entrees, side dishes, and beverages and simply multiplies the 35% times the cost to arrive at the final price to charge guests. What type of pricing is Stephen utilizing?

Stephen King is the owner of a 100-seat capacity restaurant in a mid-sized city and has significant restaurant experience but often struggles with decisions about pricing. Over the years however, he's developed a simple method where he applies a straight 35% to the cost of an item as his retail price. Stephen always knows the various cost elements of his entrees, side dishes, and beverages and simply multiplies the 35% times the cost to arrive at the final price to charge guests. What type of pricing is Stephen utilizing?




cost-plus pricing

demand-based pricing

markup pricing

competition-based pricing



Answer: markup pricing


Learn More :