Why Cheap Steaks are not Served in Comfortable Environment?

I went to eat cheap steaks with my brother yesterday night. As I tucked into my well-done steak, I wondered why the owner doesn’t bother to install air-cons in the premise because besides providing better dining experience for the existing customers, it might attract new customers. The answer turns out to be quite simple. For its business model of providing steaks at affordable price to succeed, 2 requirements must be met: 1) the stall must have a large customer base and 2) the customer turnover must be very high.

Making the premises more comfortable will encourage customers to stay longer and this means fewer seats available for the newly arriving customers. Faced with the hassle of queuing, they will soon decide not to patronize the stall anymore and in dong so, reduce the customer turnover. To compensate for the loss of revenues, the stall will need to charge more for each steak it sells and this will subsequently result in even more customers deciding to move elsewhere for cheap steaks. When that happens, the fate of the stall will be in a limbo.