Graduate Thesis Or Dissertation
 

Consumption of seafood, poultry and meat in restaurants vs. supermarkets

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  • There is considerable evidence to support the hypothesis that seafood, poultry and meat are close substitutes in consumer demand. Thus the relationships among prices are important in determining consumption patterns among these protein sources. In addition, there are at least two kinds of outlets in which seafood, poultry and meat are sold to consumers: retail stores, including supermarkets, and away-from-home outlets, including restaurants. Because restaurants and retail stores add different sets of services to their products (dining facilities vs. packaging, for example), one would expect the price relationships among the three protein categories to be different, as between the two outlets. In turn, this should lead to consumption patterns that are different in restaurants than in retail stores. Some, however, argue that this is not the case because the different prices in the two outlets can be assigned directly to the services provided by the respective outlets and thus should not be included in the prices of the protein items themselves. Under this argument, there should be no differences in the consumption patterns as between the two outlets. This study presents a theoretical background and model of the issue, reviews the competing hypotheses, and performs an empirical test. Unfortunately, neither hypothesis can be supported from the observations of a restaurant that participated in the study. However, supplemental data from a family restaurant chain provides evidence that the consumption ratios of the two protein sources is not responsive to change in the prices of the services provided.
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