The Economics Of Rotisserie Chicken

1. The Economics Of Rotisserie Chicken As a frequent shopping mall person, perhaps one day you bought a pre-cooked meal to make cooking dinner more efficient. One such famous pre-cooked meal is Rotisol Rotisserie chicken. It is not uncommon to find Supermarkets and Cafes offering freshly roasted chicken using their Small Commercial Rotisserie Oven and selling them at a price lower than uncooked chicken. Surprising, right? Usually, pre-cooked meal packet costs higher than the cost of preparing that meal from scratch, collectively. Then, why is rotisserie chicken an exception? Let us understand the economics behind it. The Buying Impulse The reason why supermarkets invest so much in rotisserie chicken is the factor of impulse buying. After spending an hour or so at the mall, everyone craves for some rest at home without having to cook dinner, and they end up buying the rotisserie chicken. For them, the price of an inexpensive roasted chicken is just a drop of water in a large ocean of their average monthly spending of groceries. But one would still wonder how the supermarkets compensate for their reduced margins on the price of the roasted chicken. This reduced profit margin of rotisserie chicken sales is easily compensated by increased sales in other grocery products. Few supermarkets increase their publicity by maintaining their prices of rotisserie chicken to uphold existing and attract new customers. Other Governing Reasons for Low Price

2. The reason behind no increase in the prices is interesting too. The raw chicken on the shelves is intact with all the juices and fats, which add on to its weight. While on the other hand, when you cook a chicken, all of the juices and fats are removed, which decreases its weight. There are also instances where supermarkets clear out meat products which are about to expire, and sell them as pre-cooked meals. They have rotisserie chicken program where they transfer unsold chicken directly into their rotisserie oven. This way, they successfully minimize food wastage and results in great value pre-cooked meals for their customers. Another factor for low prices is in the understanding of shelf life. Rotisserie chicken dries up after being in display shelf for up to 4 hours. This makes it crucial to sell it quicker, and thus, on lower prices. Whereas, an uncooked chicken can be displayed for 1-2 days and after that, it can last up to 1 year in the freezer. This is why supermarkets can afford to sell the raw chicken at a higher rate comparatively. So, in conclusion, there are various factors involved in the unusual and upheld pricing of Rotisol Rotisserie chicken. It represents the smart marketing of the supermarkets. There will always be some people who prefer home cooked chicken over the ones cooked in Small Commercial Rotisserie Oven in the Supermarkets. Buying a pre-cooked rotisserie chicken is a win-win outcome for customer – saving them time and cost whilst for the Supermarkets, it means improved customer loyalty and more sales.