Tutti Matti Case Study

688 Words2 Pages

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 …show more content…

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

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