Our two businesses, Taco Bell and Qdoba, both are in the business of selling tacos and mexican foods to their customers and try to ensure quality food. With similar products comes competition. Taco Bell and Qdoba are indirect competitors as Qdoba is more of a sit down restaurant and, isn’t considered fast food. Qdoba doesn’t have a drive thru unlike Taco Bell, and Qdoba serves authentic Mexican foods, also unlike Taco Bell. Qdoba focus on their quality and not their prices of the foods compared to Taco Bell, they don’t advertise their prices as much or have special deals. The effects of competition can lead to innovation and expansion of a business, like adding a drive thru, creating more restaurants, change of prices, or by offering new foods to the menu.
The profits in these 2 businesses are very similar because they are both restaurants and similar to size. The source of income for both of the businesses come from their customers by purchasing foods. The expenses between the two are close as franchise fee is both $30,000 and total cost for start up for Qdoba is
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Some of Taco Bell’s risks include, hazard risks, a hazard risk deals with employee damage, property damage, crime etc. All employees of Taco Bell are at risk of a slip and fall. Even if you wear non slip shoes. When floors are slick from grease, it can be extremely hard to make them safe. Another risk would be operational risk, this includes human errors, production problems, and leadership problems. For example if either restaurant has a faulty machine that goes out of order this would decrease profits since they can't purchase the food item that they may want. Also there is strategic risks, examples of strategic risk are, competition, and changings customers needs such as,Adding new items to a menu and creating a good tasting unique item that can compete with another