Problem
This case is about Soloman’s restaurant Tutti Matti, and the current struggle she is facing is with the budget – build restaurant brand awareness to attract more customers and increase customer base.
With a start up cost of $380,000, Solomon hopes to finish of the fiscal year with gross sales of minimum $500,000. Since November 2002, the first six months Tutti Matti has been open, sales generated $210,000 – which is great as the business is 42% on target to reach it’s goal of $500,000. Solomon notices that most of his customers are nearby workers in the downtown area for lunch and for dinner his clientele mostly is friends and family. To reach the target, Tutti Matti has different price ranges. Tutti Matti offers lunchtime special
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In April, World Health Organization declared the intensity of the virus and provided travel caution especially in Toronto. Toronto is one of the cities that are largely affected by the virus and revenues have decreased approximately $39 million since April. The SARS outbreak in Toronto affects the customers of Tutti Matti, as the restaurant is serving only in Toronto Downtown and has affected the tourism sector in Toronto. With the amount of time Solomon has, it is important to address what the business offers and where it …show more content…
The restaurant is unable to successfully market itself since competitors like Alice Fazooli’s and Terroni, both competitors have multiple locations with more seating capacity and also has a established brand awareness of their restaurants. Unlike the competitors, Tutti Matti offers one location serving in downtown Toronto (King and Spadina), good location with busy traffic, however despite the amount of customer traffic in downtown Toronto, the restaurant serves 70 seats only. Moreover, Tutti Matti does not offer lunch Saturdays and is not open on Sundays unlike competitors. Business is not consistent like competitors instead it is slower in the summer season along with Mondays and Tuesdays. Furthermore, like abovementioned, Tutti Matti has 2 price strategies - $15 lunch price-fixe or the menu ranges from $6.25 – 28.95, where the average dinner cost is $50 plus tip and tax. The restaurant does not use any middlemen and Solomon saves about $15, 000 from expenses by purchasing ingredients herself. Hence, for the first six months the business did well with a sales $210 000 and 30% of the sales was the cost of food expense. Thus, profit margin first six months is $165 900. The fixed cost of the business adds up to $130 616 which leaves a total profit contribution of $35 284 from operating the six months. In order to build brand awareness and increase customer base, Solomon is willing to
Stephen Boos has worked in the food service industry for over 30 years. He started as a bus person and subsequently trained as a chef’s apprentice. Steve’s mother believed that a college education was something that everyone should receive. She felt that a college degree was a good investment in Steve’s future. In 1976 at his mother’s insistence, Boos moved to Northeastern Ohio to attend Kent State University where he earned a bachelor’s degree in business administration. After graduation, Steve began working for East Park Restaurant as a line cook. Using his education as a foundation, Steve made a point to learn everything he could about running a restaurant, from cutting meat to the bi-weekly food and beverage orders. His versatility, keen business sense, and ability to control costs resulted in Steve’s promotion to General Manager, as role he has held since 1995.
Born of the idea to preserve authentic Italian cuisine, Academia Barilla has faced strategic issues to increase profitability and growth. Offering not only high quality food products, but an education on Italian gastronomy, Academia relies on a differentiated marketing message of authenticity, with the quality to prove it. While striving to teach buyers of the difference between imitation and true Italian cuisine, Academia must continue to seek new strategies to reach a broader customer base. By studying the firm’s core competencies, and performing analysis on the industry, Academia has the tools necessary to meet their objectives.
Firms such as P.F. Chang’s and Applebee’s, and Olive Garden, offer’s menus that may be (more or less) good substitutes of each other, but none of them perfect substitutes. When viewed from this stand point, no one company has the market cornered. Indeed, virtually every restaurant location must compete not only against other publicly traded chains, but also a wide array of delis, pizzerias, fine dining restaurants and the economy. The Cheesecake Factory is noticeably differentiated in its bakery, and represents commodity diversity that uses this segment of the company to stand out from a large number of
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
The restaurant business is a challenging industry and if a company has a strategy that works for them as well as their employees, it should stay the course and tweak as needed.
Fourth problem- Demographic data on the two stores, Cotati, and Santa Rosa are closely related. A decision needs to be made on which store to purchase, or to purchase both stores. Can Oliver Market make a profit with these stores is the question. Also Steve and Tom need to think about their competitor best and weak strategy and who are entering in the demographic markets as well as which rivals are strong candidates to expand their product offering and enter new product segments where they do not currently have a presence.
The quality control in Pizza My Heart begins from procurement to kitchens at every location. The first thing that sets it apart from others is local sourcing to en...
Mr. Armetta is a graduate of St. John’s University where he obtained a BS in Accounting. He has held various positions with financial institutions and was last employed by JP Morgan Chase. Upon leaving a successful career at JP Morgan Chase in 2002 as an associate in Chase Auto Finance Financial Management Dept, Mr. Armetta committed his full time efforts to his Retail business, which was fully operational since 2001.
The company operates approximately 3,400 domestic and international pizza restaurants. They have five segments of their business: domestic restaurants, domestic commissaries, domestic franchises, international operations, and variable interest entities. (Barney & Hesterly, 2010) They have company-owned restaurants in mature and developed markets, but have recently experienced a measurable decrease in their domestic franchising sales because these franchisees are not strategically located in the more heavily concentrated markets like their company owned restaurants.
Pizza Hut dine-in location strategy has served well as the staple in American “tradition”. It encourages family outings and get togethers as opposed to the delivery or carry-out method. Pizza Hut is known for their wide range of pizza and menu selection which has increase their revenue and net earnings year after year. Domino’s is another top competitor that has outperformed their competition by becoming pioneer’s in online ordering and pizza delivery. Their strategy of champagning “new and improved” strongly gained national recognition with consumers which helped increase sales.
When different kinds of menu for lunch and dinner are included, there is an opportunity for attraction of more clients in the new outlet
TP has grown from a single store in 1988 to the largest pizza chain in Spain. At the end of 1997 they had 399 stores and an estimated market share of 62% in Spain. But what made it so successful? There are several reasons for that in the TP concept:
Since our primary target customers are the university students and the local residents, hence, the price of the meal must be cheap and affordable. There are 2 different groups of target customers where different levels of people have different income. Thus, we take the student’s monthly allowance into the consideration and come out with a promotion plan for the students. When the students show their matrix card, they will get a 15% discount for the bill.
Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
The most important problem facing the company is that Red Lobster founded out that they could have a bigger moneymaker target market by focusing on a newly discovered segment, the “Experientials.” The restaurant is starting to face competition after being one of the only chain restaurants to sell fast food. After realizing a need change the company did market research as well as put in place a 3-phase change to the company. The phases include operational excellence, re-positioning around “freshness”, and re-modeling the restaurants. After doing so they seen sales increase and the overall guest satisfaction increase to 78%. Also, Red Lobster surpassed competition and became the number two behind Olive Garden in the American Customer Satisf...