10 Analyse the potential risk of a restaurant trying to increase its profit by using cheaper ingredients

[Tuqwa]

kn:using cheaper ingredients can reduce costs and increase profit margins but it also carries significant risks.
app:forexample if a restaurant switches to lower quality ingredients customers may notice a drop in taste and freshness leading to negative reviews and fewer repeat customers.
an:this could damage the restaurant’s reputation and reduce long term sales outweighing the short term profit gain.

[EmmanWaseem]

They will lose customer loyalty
As the restaurant is using cheap products the food will not be as good as their competitors and the customers will decrease and eat in their competitors restaurant,this will not help to increase the profit
Due to this there growth will stop and survival chances will be slim

[Abdullah Mohsin]

[KN] A fall in the brand image of the business.
[APP] For example, a well-known and established restaurant decides to cut costs by purchasing lower-quality meat, which decreases the quality and taste of their food and dissatisfies customers.
[AN] This would worsen the reputation of the business, leading to a fall in sales as customers would prefer buying from competitors, decreasing the market share of the business, and making it difficult for it to survive.