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Why is fast food so cheap?

why are fast food restaurants so cheap?

1. Positioning, fast food restaurants are mostly positioned in the low-end market at present. There are also fast food restaurants that are not cheap, such as KFC, Kungfu, etc.

2. There are many styles, and the styles look more expensive, which actually gives customers more opportunities to choose cheap dishes and reduces costs.

3. competition, restaurants are next to each other, and your house is 51 cents high, so customers may go next door.

4. according to the national policy, the tax on catering is low, and the prices of basic living goods are strictly controlled. Although rice, oil and salt are expensive, the increase is not big, and there is no state regulation. Maybe when the house price rises, many people can't afford to eat.

5. Sourcing channels. It is basically difficult for some fast food restaurants to buy goods from nearby food markets. Because of the high price of vegetables, they have to get up early to grab supplies from large markets.

6. mode of production, the cost of mass production is obviously lower, and even some fast food restaurants have central kitchens.

7. It is not excluded that a few businesses take risks for profits.