Question

Many restaurants cater to specific customers, Why is it demographics such as income and age are essential for a restaurant owner?

Answer 1

Explanation:

Restaurant face the stiff challenges from other firm in terms of demographic factor of Age group of people. like couples, families, single girls and boys who hit the restaurants at late night. More and more people are opting to eat outside than home and if restaurant need to get into profit making zone. Most of the Millennials like to spend their money on eating outside with family, friend and partners on more and more occasion so the restaurant owners need to take advantage of that age factor serve them accordingly. Today's restaurant do have to focus on another demographic factor that can change their business is income level of customers. There are people who want to eat budget foods. If restaurants want to serve each and everyone from income group they need to create product like that could be affordable by everyone as people don't want to spend their whole monthly income on foods only.

Many food restaurant chains are hitting low price product to middle level product that can be afford by everyone and still maintain quality and value for their product from customer perspective.