We all know that every transaction happening in this world is due to demand and supply. You don’t believe me? From the moment you wake up, everything that you use; from the house you live in, to the clothes you wear have been bought due to the value they bring to you. And in doing so, you fulfilled the demand side of the transaction whereas the companies selling those products fulfilled the supply side.

            The same thing applies to the restaurant industry. The restaurant creates the supply of food items through the location and their menu, whereas the customers creates the demand side of the transaction by consuming those food items. When the demand and supply meet, an equilibrium is set which is the price. When we look at the trends, we can see that a lot of the demand side has changed.

            There is a soaring number of growing middle class and they have relatively higher income to spend on restaurants and other areas. This is the reason why fast-food chains such as Burger King and McDonald’s are doing so great. With their competitive pricing on the market, a lot of customers who would not have consumed their product, are now brand advocates of those food items.

            If we look at the supply side, there has been a lot of technological innovation that makes opening and running the restaurant much easier. There are POS systems that help with real time tracking and ordering of food items; there are food delivery systems that increase the ticket order without having the physical seat count at the restaurant and many more.

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