Created byJon Fouse

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Pop-Up Restaurant: Short-Run Economics

Grade 12Economics1 days

In this project, students take on the role of entrepreneurs designing a pop-up restaurant to understand short-run economics and profit maximization. They analyze cost structures, develop pricing strategies, and make production decisions within the constraints of a short-term operation. The project incorporates activities focused on identifying key decisions, classifying costs, and setting optimal prices to maximize profitability. Students reflect on their learning and collaboration, considering potential improvements for future iterations of the project.

Pop-Up RestaurantShort-Run EconomicsProfit MaximizationCost AnalysisPricing StrategyProduction Decisions

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Inquiry Framework

Question Framework

Driving Question

The overarching question that guides the entire project.How can we design a profitable pop-up restaurant, making optimal short-run production decisions to maximize profit?

Essential Questions

Supporting questions that break down major concepts.

How do businesses make production decisions in the short run versus the long run?
What factors determine the optimal level of production for a pop-up restaurant?
How can a pop-up restaurant maximize profit in a short-term setting?

Standards & Learning Goals

Learning Goals

By the end of this project, students will be able to:

Students will be able to apply the concepts of short-run and long-run production decisions to a real-world business scenario.
Students will be able to identify and analyze the factors that influence optimal production levels for a pop-up restaurant.
Students will be able to develop a pricing strategy for their pop-up restaurant based on cost analysis and profit maximization principles.
Students will be able to design a menu and staffing plan for their pop-up restaurant, considering the constraints of a short-term operation.

Entry Events

Events that will be used to introduce the project to students

Restaurant Rescue Mission

Present students with a failing pop-up restaurant scenario (e.g., poor reviews, low profits). Students analyze the situation, identify the short-run problems, and develop a turnaround plan focusing on menu adjustments, pricing strategies, and marketing efforts.

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Portfolio Activities

These activities progressively build towards your learning goals, with each submission contributing to the student's final portfolio.

Activity 1

Short-Run Restaurant Snapshot

Students take an initial snapshot of a pop-up restaurant's short-run production decisions. This involves analyzing immediate, flexible choices like staffing levels, ingredient orders, and pricing strategies, setting the stage for deeper analysis.

Steps

Here is some basic scaffolding to help students complete the activity.

1. Brainstorm: List all the decisions a pop-up restaurant owner can make quickly (within a week) to impact profit.

2. Categorize: Group these decisions into categories like 'Staffing,' 'Supplies,' 'Pricing,' and 'Marketing.'

3. Prioritize: Rank the categories based on which would have the most immediate impact on profitability.

Final Product

What students will submit as the final product of the activityA prioritized list of short-run production decisions categorized by impact area (staffing, supplies, pricing, marketing).

Alignment

How this activity aligns with the learning objectives & standardsAddresses the learning goal of applying short-run production decisions to a real-world scenario.

Activity 2

Cost Detective: Uncovering the Expenses

In this activity, students become 'cost detectives,' identifying and classifying the various costs (fixed and variable) associated with running a pop-up restaurant. This helps understand the cost structure and its influence on short-run production decisions.

Steps

Here is some basic scaffolding to help students complete the activity.

1. Define: Clearly define fixed costs (costs that don't change with output) and variable costs (costs that do change with output).

2. Identify: List all potential costs for the pop-up restaurant. (e.g., rent, ingredients, wages, utilities).

3. Classify: Categorize each cost as either fixed or variable.

Final Product

What students will submit as the final product of the activityA detailed breakdown of the pop-up restaurant's costs, classified into fixed and variable categories.

Alignment

How this activity aligns with the learning objectives & standardsAligns with the learning goal of identifying and analyzing factors that influence optimal production levels, focusing on cost analysis.

Activity 3

Pricing Puzzle: Maximizing Short-Run Profit

Students tackle the 'Pricing Puzzle' by developing a pricing strategy for their pop-up restaurant's menu items. They will consider costs, competition, and demand to maximize profit within the short-run constraints.

Steps

Here is some basic scaffolding to help students complete the activity.

1. Research: Investigate the prices of similar menu items at nearby restaurants or pop-up events.

2. Calculate: Determine the cost per serving for each menu item, based on ingredient costs.

3. Strategize: Set a price for each menu item, considering both cost and market prices, aiming to maximize profit in the short term.

Final Product

What students will submit as the final product of the activityA menu with prices set for each item, justified by cost analysis and market research.

Alignment

How this activity aligns with the learning objectives & standardsSupports the learning goal of developing a pricing strategy for a pop-up restaurant based on cost analysis and profit maximization principles.

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Rubric & Reflection

Portfolio Rubric

Grading criteria for assessing the overall project portfolio

Pop-Up Restaurant Project Rubric

Category 1

Short-Run Production Decisions

Demonstrates understanding of short-run production decisions and their impact on profitability.

Criterion 1

Identification of Key Decisions

Ability to identify and categorize key short-run production decisions for a pop-up restaurant.

Exemplary

4 Points

Identifies and categorizes a comprehensive range of short-run decisions with clear, insightful examples, demonstrating a deep understanding of their impact on profitability.

Proficient

3 Points

Identifies and categorizes most key short-run decisions with relevant examples, showing a good understanding of their impact on profitability.

Developing

2 Points

Identifies and categorizes some short-run decisions, but with limited examples or unclear connections to profitability.

Beginning

1 Points

Struggles to identify or categorize short-run decisions, showing a minimal understanding of their impact on profitability.

Criterion 2

Prioritization and Justification

Ability to prioritize decisions based on their immediate impact on profitability, with clear justification.

Exemplary

4 Points

Prioritizes decisions effectively, providing a well-reasoned and comprehensive justification for each choice, demonstrating a sophisticated understanding of economic principles.

Proficient

3 Points

Prioritizes decisions logically, providing a clear justification for each choice, demonstrating a solid understanding of economic principles.

Developing

2 Points

Attempts to prioritize decisions, but justification is limited or unclear, showing a basic understanding of economic principles.

Beginning

1 Points

Struggles to prioritize decisions or provide any justification, indicating a minimal understanding of economic principles.

Category 2

Cost Analysis

Demonstrates the ability to classify and analyze costs (fixed and variable) associated with running the pop-up restaurant.

Criterion 1

Cost Identification

Ability to identify a comprehensive list of potential costs for the pop-up restaurant.

Exemplary

4 Points

Identifies a comprehensive and detailed list of potential costs, including nuanced and often overlooked expenses.

Proficient

3 Points

Identifies a thorough list of potential costs, covering most significant expenses.

Developing

2 Points

Identifies some potential costs, but misses some important expenses.

Beginning

1 Points

Identifies only a few potential costs, indicating a limited understanding of restaurant expenses.

Criterion 2

Cost Classification

Ability to accurately classify identified costs as either fixed or variable.

Exemplary

4 Points

Accurately classifies all identified costs, demonstrating a deep understanding of the distinction between fixed and variable costs.

Proficient

3 Points

Accurately classifies most identified costs, showing a good understanding of the distinction between fixed and variable costs.

Developing

2 Points

Classifies some costs correctly, but makes errors in classifying others.

Beginning

1 Points

Struggles to classify costs correctly, indicating a minimal understanding of the distinction between fixed and variable costs.

Category 3

Pricing Strategy

Demonstrates the ability to develop a pricing strategy that maximizes short-run profit, considering cost and market factors.

Criterion 1

Market Research and Cost Analysis

Conducts adequate market research and calculates cost per serving accurately.

Exemplary

4 Points

Conducts thorough market research and calculates cost per serving with exceptional accuracy, demonstrating a comprehensive understanding of market dynamics and cost accounting.

Proficient

3 Points

Conducts sufficient market research and calculates cost per serving with good accuracy.

Developing

2 Points

Conducts limited market research and/or makes some errors in calculating cost per serving.

Beginning

1 Points

Conducts minimal market research and/or makes significant errors in calculating cost per serving.

Criterion 2

Pricing Justification

Provides a well-reasoned justification for the chosen prices, considering both cost and market factors.

Exemplary

4 Points

Provides a compelling and insightful justification for the chosen prices, demonstrating a sophisticated understanding of pricing strategies and market dynamics.

Proficient

3 Points

Provides a clear and logical justification for the chosen prices, demonstrating a solid understanding of pricing strategies and market dynamics.

Developing

2 Points

Attempts to justify the chosen prices, but justification is limited or unclear.

Beginning

1 Points

Fails to provide a reasonable justification for the chosen prices.

Reflection Prompts

End-of-project reflection questions to get students to think about their learning

Question 1

Reflecting on the Pop-Up Restaurant project, what was the most surprising thing you learned about the difference between short-run and long-run production decisions?

Text

Required

Question 2

Which of the 'Portfolio Activities' (Short-Run Restaurant Snapshot, Cost Detective, Pricing Puzzle) was most helpful in understanding how to maximize profit in a short-term setting?

Multiple choice

Required

Options

Short-Run Restaurant Snapshot

Cost Detective

Pricing Puzzle

All were equally helpful

Question 3

How confident are you in your ability to apply the concepts of short-run and long-run production decisions to a real-world business scenario?

Scale

Required

Question 4

If you were to do this project again, what is one thing you would change about your pop-up restaurant design or production decisions to improve its profitability?

Text

Required

Question 5

To what extent did your group effectively collaborate on the different aspects of designing the pop-up restaurant?

Scale

Required