The 50 Yard-Line Steakhouse

“How much will it cost to make the change?” asked Tamara Stevens.

Tamara owned the 50-Yard-Line Steakhouse. She was meeting with Stacy Black, the restaurant’s executive chef, and Faye Cavanaugh, the sales representative for Broiler Meats, a potential vendor that Stacy had gotten very excited about.

“Well, it depends on the cut,” replied Stacy. “Faye can give you the details. But the point is, when we print on our menus that we serve only Certified Angus Beef instead of the USDA Choice we now advertise, I think our customers will be happy to pay more for it.”

“Because they will be getting better quality for their money,” said Faye.

“Are you saying that all Certified Angus Beef is of higher quality than USDA Choice?” asked Tamara.

“Not exactly. Some Certified Angus Beef is equivalent to high-grade Choice, but most of it is equivalent to USDA Prime,” said Faye.

“And you believe our customers will readily accept paying more for a Certified Angus Beef steak?” asked Tamara.

“Absolutely,” replied Faye.

“I agree,” said Stacy.

  1. As a hospitality professional, could you in response to a customer’s query, explain the difference between a USDA Choice New York Strip steak and a Certified Angus Beef New York Strip steak?
  2. How important would it be to know if this proposed quality enhancement would in fact be readily accepted by the 50-YardLine’s customers before the decision to implement it has been made?
  3. What inherent difficulties do RMs face when specialists in an area; such as Stacy in this example, are allowed to alter quality parameters independent of their effect on strategic pricing decisions?

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