Which of the following reasons would not justify a price increase in a quick-serve restaurant?

A price increase in a quick-serve restaurant is often justified by various factors that affect operating costs or market dynamics. When considering these factors, employee bonuses are not typically a reason to raise prices.

Increased cost of ingredients is a significant reason for altering prices because fluctuations in the prices of raw materials directly impact the cost of goods sold. If a restaurant pays more for key ingredients, this increased expense can necessitate a price increase to maintain profit margins.

Similarly, higher labor costs can compel a restaurant to raise prices. As wages may increase due to minimum wage laws, market competition, or a need to attract skilled labor, these added expenses will affect the overall operational costs.

Increased customer demand can also justify a price increase. When more customers are flocking to the restaurant, it indicates a strong value proposition or popularity, allowing the restaurant to potentially charge more for their offerings, especially if supply becomes an issue.

In contrast, employee bonuses are typically viewed as a method to reward staff for performance or retain talent. While important for employee morale and retention, bonuses are considered a part of employee compensation rather than a direct operational cost. Therefore, raising prices to cover bonuses does not align with standard pricing strategies based on cost inputs or market demand.