Restaurant Research & Decision Making

This assignment analyzes the importance of research in guiding successful restaurant operations. It examines both primary and secondary data collection methods used to inform management decisions. Specific statistical tools such as mean, median, mode, Net Present Value (NPV), and Internal Rate of Return (IRR) are discussed in the context of project evaluation within a restaurant setting.

Business decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: Sources of data collection....................................................................................................1
1.2: Research methodologies and sampling framework.............................................................2
1.3: Questionnaire designing ......................................................................................................3
TASK 2............................................................................................................................................5
2.1: Designing data with the help of representative values.........................................................5
2.2: Evaluation of data those are collected from research .........................................................7
TASK 3..........................................................................................................................................10
3.1: Different charts and graphs................................................................................................10
3.2: Trend line...........................................................................................................................14
3.3: Covered in PPT..................................................................................................................15
TASK 4..........................................................................................................................................16
4.1: Use of information methods system in decision-making...................................................16
4.2: Critical path .......................................................................................................................17
4.3: Various investment appraisal tools....................................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
.......................................................................................................................................................19
.......................................................................................................................................................19

INTRODUCTION
Business decision making is vital part of organisation. It helps in selection of best project
out of large number of alternative choices. There are large number of information and financial
tools like transfer processing system, decision support system and NPV, IRR etc. are used to
enhance their decision making power. Research is an important aspect which helps in collection
of information from market and interpretation of important conclusions. There are large number
of methods like mean, median and mode helps to ascertain important results. Murano is a
restaurant which provides their services in London. The objective of restaurant is to start new
branch (Saaty and Peniwati, 2013).
In the present report explain about, creation of plan by use of primary and secondary
method of data collection, research methodologies and sample framing, designing of
questionnaire, analysis of data to interpret important conclusions, use of quartiles, percentiles
and correlation coefficient to interpret conclusions. Also creation of graphs and use of
information and financial tools for enhance decision making.
TASK 1
1.1: Sources of data collection
Murano is a restaurant which provides their services in London. Diversified dishes are
provided by restaurant like seafood, Italian, Thai etc. The main aim of restaurant is to satisfy the
different demands of customer and open new branch in London to expand their business
operations. For this purpose, they want to ascertain the views of customer regarding their
services and viability of their move of expansion. Research plays an important role in collection
of data. Primary and secondary method of data collection is used by the researcher which are
defined below:
Primary data: It is considered as best method of data collection because it helps in
collection of unbiased information. This method used to ascertain the real views of respondents.
Such information is also called as first hand information. It is effective method to enhance the
decision making power of management of restaurant. It includes different tools and techniques
which are mentioned below:
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 Research: This method includes face to face communication with respondents to
ascertain their feedbacks. Under this method, ranks are given to the information which
are provided by respondents for their effective evaluation.
 Questionnaire: This includes the various set of questions which are asked from
respondents to know their views. It can be of two types which are open-ended and close
ended. This is time saving and cost efficient method in comparison to other primary tools.
 Online: This includes the use of social media platforms to get the answers from
respondents. The reach of this primary tool is more wide. So, it helps in collection of
information from large number of public.
Secondary method: This method is used to collect the information which is already
present in secondary sources. Such secondary sources are articles, magazines, newspapers etc. It
is not much relevant method to conduct research because the data collected through this method
is not reliable and relevant (Nooraie, 2012).
1.2: Research methodologies and sampling framework
The main purpose behind conducting research is to getting the solutions regarding
problems, factors which are present in business environment, check the viability of move of
opening of new branch and current position of restaurant in market. There are many research
methods are available but the researcher has the duty to select the best method which helps in
selection of respondents from total population.
Survey methodologies: There are large number of methods which are helpful in
conducting research. Such methods are known as primary and secondary method of data
collection. The researcher of Murano restaurant decided to use primary source of data collection.
This sources of data collection includes many tools but questionnaire is used to collect the
information. Researcher prepares different set of questions regarding their issues, expansion
plan, quality of current products and services etc. 10 different questions are included in
questionnaire.
Sample framework: This includes the process of designing of sample framework which
guides researcher while conducting research work. While preparing such framework different
methods are available to select respondents from total population. Such methods are cluster,
stratifies and random sampling etc. But management of Murano decided to adopt random
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sampling method to select respondents. By the use of this method 50 respondents are selected
from population.
In process of conducting research, 10 different questions which are prepared by
researcher are asked to such selected 50 respondents to ascertain their view points. Large number
of different methods of dispersion and quartiles, percentiles and correlation coefficient are used
to interpret important results. The research topics which are covered under questionnaire are
mentioned below:
 Current position of restaurant in market
 Quality of the existing food products and services
 Growth of business activities by opening of new branch in London
1.3: Questionnaire designing
Questionnaire: It includes set of research questions to ascertain preferences, behaviours
and facts. Open-ended questionnaire provides the opportunity to the respondents regarding
formulation of their own answer. On other hand, Close ended questions have multiple answers
attached to such questions (Kacprzyk and Fedrizzi, 2012).
Questionnaire
Name:
Age:
Occupation:
Gender:
Q1. Is it viable for Murano to open new branch in London?
 Yes
 No
Q2. Do you think it helps in capturing large market share?
 Yes
 No
 Can't say
Q3. Are you satisfied with the pricing of the food products of Murano?
 Highly satisfied
 Satisfied
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 Dissatisfied
Q4. What kind of dish you like most in Murano restaurant?
 Italian
 Thai
 Seafood
Q5. What attracts you most in Murano restaurant?
 Food
 Services
 Surroundings
Q6. Do you want some changes in existing services of Murano restaurant?
 Yes
 No
Q7. Are you satisfied with the quality of food items of Murano restaurant?
 Highly satisfied
 Satisfied
 Dissatisfied
Q8. What place do you think best to open new branch of restaurant in London?
 In city
 Countryside
 Near tourist destinations
Q9. Do you think adequate amounts of funds are available with the management of Murano
restaurant?
 Yes
 No
Q10. What you want to recommend to Murano restaurant to expand their busienss operations?
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TASK 2
2.1: Designing data with the help of representative values
Q1. Is it viable for Murano to open new branch in London?
Particulars
Respondent
s
Yes 35
No 15
Total 50
Mean 25
Median 25
Mode 5
Q2. Do you think it helps in capturing large market share?
Particulars
Respondent
s
Yes 40
No 5
Can't say 5
Total 50
Mean
16.6666666
667
Median 5
Mode 0
Q3. Are you satisfied with the pricing of the food products of Murano?
Particulars
Respondent
s
Highly
satisfied 15
Satisfied 30
Dissatisfied 5
5

Total 50
Mean
16.6666666
667
Median 15
Mode 0
Q4. What kind of dish you like most in Murano restaurant?
Particulars
Respondent
s
Italian 26
Thai 14
Seafood 10
Total 50
Mean
16.6666666
667
Median 14
Mode 6
Q5. What attracts you most in Murano restaurant?
Particulars
Respondent
s
Food 32
Services 10
Surrounding
s 8
Total 50
Mean
16.6666666
667
Median 10
Mode 0
Q6. Do you want some changes in existing services of Murano restaurant?
Particulars
Respondent
s
6

Yes 28
No 22
Total 50
Mean 25
Median 25
Mode 6
Q7. Are you satisfied with the quality of food items of Murano restaurant?
Particulars
Respondent
s
Highly
satisfied 18
Satisfied 22
Dissatisfied 10
Total 50
Mean
16.6666666
667
Median 18
Mode 18
Q8. What place do you think best to open new branch of restaurant in London?
Particulars
Respondent
s
In city 22
Countryside 10
Near tourist
destinations 18
Total 50
Mean
16.6666666
667
7

Median 18
Mode 2
Q9. Do you think adequate amounts of funds are available with the management of Murano
restaurant?
Particulars
Respondent
s
Yes 35
No 15
Total 50
Mean 25
Median 25
Mode 5
2.2: Evaluation of data those are collected from research
To make the results more precise, researcher decided to analyse the figures of past year
sales and net profits of Murano restaurant. To evaluate the information which is depicted by such
figures, researcher decided to use the methods of Mean, Median and Mode. This will provides
effective results which enhance the decision making power of the management regarding
opening of new branch of restaurant in London (Cosgrove and Rijsberman, 2014).
YEAR Sales Net Profit
2008 5058 1770.3
2009 5352 1873.2
2010 5485 1919.75
2011 5585 1954.75
2012 5658 1980.3
2013 5758 2015.3
2014 5885 2059.75
2015 5895 2063.25
2016 5985 2094.75
2017 6158 2155.3
Sales Profits
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Mean 5681.9 1988.665
Median 5708 1997.8
Mode 5058 1770.3
Mean: This includes the process of calculation of average of the data which is present in
series. The calculation of mean of Sales and Net profit of past years helps to know about the
expected value which is received by Murano restaurant over the period of time. It helps to
understand about the performance of restaurant in past years. Mean of sales is 5681.9 and for net
profit is 1988.665 (Sinha and Labi, 2011).
Mean: ∑X/N
Median: It is important method which is used by the researcher to ascertain the middle
value of data which is presented in series. The middle value which is derived is separating the
higher half of sample data from the lower half. From the above given data of sales and net profit
researcher also calculates the mean to improve their results and decision-making. The median of
sales is 5708 and for net profit is 1997.8.
Median: [L1 + (N/2) – c/F*i]
Mode: Mode is called as the figure which is present most often in a series. Researcher of
Murano restaurant calculates the mode of sales and net profit to improve their decision making.
The mode of sales is 5058 and for net profit is 1770.3.
Mode: L + h ( fm – f1 / 2fm – f1 - f2 )
2.3: Analysing measure of dispersion
YEAR Sales Net Profit
2008 5058 1770.3
2009 5352 1873.2
2010 5485 1919.75
2011 5585 1954.75
2012 5658 1980.3
2013 5758 2015.3
2014 5885 2059.75
2015 5895 2063.25
2016 5985 2094.75
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2017 6158 2155.3
Sales Profits
Standard
deviation 326.2257057792 114.1789970227
Correlation
coefficient 1
Minimum range 5058 1770.3
Maximum range 6158 2155.3
Range: It is effective method which includes the comparison of minimum and maximum
range to attain important information and results. To improve their decision making,
management of Murano restaurant calculated minimum and maximum range of sales and net
profit. Minimum and maximum range of sales is 5058 and 6158 and on other hand for net profit
is 1770.3 and 2155.3.
Standard deviation: It is calculated by the management of Murano restaurant to
ascertain the amount of risks which are associated with their new project. It is also helpful
regarding measurement of quantify amount of sales and net profit which are present in a series.
The standard deviation of sales is 326.2257057792 and for net profit is 114.1789970227.
2.4: Advantages of using quartile, percentile and coefficient correlation
Quartiles: There are of three types of quartiles which are used regarding the
segmentation of business. These are named as upper, lower and inter quartile. All three quartiles
have their different limits. Upper quartile has the limit of 75%, lower quartile has the limit of
25% and interquartile has the limit of 50%. It is shown that results are optimum, if falls between
such limit (Tzeng and Huang, 2011).
Percentiles: It is effective method which is used regarding the conversion of results into
percentage form. This helps in resolving of the issues in more easy manner. The results are called
optimum, if comes between such limit.
Correlation coefficient: This method present the relationship between two variables.
The results are called optimum, if comes between the limit of 1 to -1. If the results are not fallen
between such limit then they are not acceptable for decision making.
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TASK 3
3.1: Different charts and graphs
Q1. Is it viable for Murano to open new branch
in London?
Frequency
Yes 35
No 15
Yes No
0
5
10
15
20
25
30
35
40 35
15 Frequency
Q2. Do you think it helps in capturing large
market share?
Frequency
Yes 40
No 5
Can't say 5
40
5
5
Yes
No
Can't say
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Q3. Are you satisfied with the pricing of the
food products of Murano?
Frequency
Highly satisfied 15
Satisfied 30
Dissatisfied 5
15
30
5
Highly satisfied
Satisfied
Dissatisfied
Q4. What kind of dish you like most in
Murano restaurant?
Frequency
Italian 26
Thai 14
Seafood 10
Italian Thai Seafood
0
5
10
15
20
25
30
26
14
10
Frequency
12

Q5. What attracts you most in Murano
restaurant?
Frequency
Food 32
Services 10
Surroundings 8
Food Services Surroundings
0
5
10
15
20
25
30
35 32
10 8
Frequency
Q6. Do you want some changes in existing
services of Murano restaurant?
Frequency
Yes 28
No 22
28
22 Yes
No
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Q7. Are you satisfied with the quality of food
items of Murano restaurant?
Frequency
Highly satisfied 18
Satisfied 22
Dissatisfied 10
Highly satisfied Satisfied Dissatisfied
0
5
10
15
20
25
18
22
10 Frequency
Q8. What place do you think best to open new
branch of restaurant in London?
Frequency
In city 22
Countryside 10
Near tourist destinations 18
14

In city Countryside Near tourist destinations
0
5
10
15
20
25
22
10
18
Frequency
Q9. Do you think adequate amounts of funds
are available with the management of Murano
restaurant?
Frequency
Yes 35
No 15
35
15
Yes
No
3.2: Trend line
It is a line which helps in evaluation of the results. It helps in visual representation of the
figures with the helps of trend lines. Such lines are used by the management of Murano
restaurant show the figures of sales and net profit which are forecasted for future years. This will
have huge importance for restaurant to enhance their decision making and attain their targets. It
helps to understand about the profitability and future growth opportunities which are present in
front of Murano restaurant (Xu, 2015).
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Year Sales Net Profit
2017 7100 2110
2018 7660 2450
2019 8540 2750
2020 8850 2900
1 2 3 4
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2017 2018 2019 2020
7100
7660
8540 8850
2110 2450 2750 2900
Year
Linear (Year)
Sales
Linear (Sales)
Net Profit
Linear (Net Profit)
As per the forecasted figures of sales and net profit which are present above trend line
chart is prepared by Murano restaurant. Through analysis of this chart it is visible that sales and
profit of restaurant is increased with good rate. It represents that restaurant has good position in
market and able to satisfies the different demand of customers (Shapiro and Stefkovich, 2016).
3.3: Covered in PPT
3.4: Formal report
REPORT
To,
The Restaurant Manager
Date: 20th April, 2018
Subject: “ Research about customer's satisfaction and views regarding expanding business in
London Market”
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Introduction:
In this research report, positive outcomes will be identified through getting views and
suggestions from targeted customers about the expansion of Murano restaurant business in
London market. Thus the methods of collecting data such as primary and secondary are adopted
in order to get accurate and useful information to make an effective business decision.
Methodologies:
Under this research, different methodologies research has also described which is useful in
bringing positive outcome to restaurant. Such methodologies are descriptive and qualitative
methods through which they can achieve maximum possible result.
Findings:
After proper analysis, 50 respondents has been selected as sample among large number of
people. The whole survey are based on them only. It has been clearly identified that the
customers prefer to visit those restaurants which are located near to them. Some customers
prefer to give order through online as they don't want to go at restaurant which consumes more
time and energy. It has been also observed that the customers feel happy and satisfied when the
staff members treat them well while serving on their table. The main advantage of restaurant is
that they provide good and healthy environment which attracts new customers to visit there at
once.
Recommendation:
Apart from the favourable reviews and feedbacks, there are also some customers who are not
happy with the services they provide at their restaurant which may restrict them in achieving
growth and success. Thus it is important for manager of Murano restaurant to resolve their
queries through providing optimum solution and make some changes in their facilities and
products as per the needs and requirements of their targeted customers.
Conclusion:
From the above analysis, it has been clearly confirmed through favourable responses from the
customers that thinking of opening new restaurant in London Market will bring positive result
to them. The study is overall about the identifying chances of growth and success of new
restaurant in a London market.
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TASK 4
4.1: Use of information methods system in decision-making
There are various information method system which help management of restaurant to
consider all material data and information in order to make profitable business decision
(Rothman, 2017). Some systems are described as under:
Management information system (MIS): It is computerised system which is organised
and programmed in such an effective manner that will brings regular report on operation for
every level of management in company. It can help manages to get special reports from this
system easily.
Transactional processing system (TPS): This system in used with an objective of
evaluating number of transactions done on regular basis in an organisation. It help manager in
transmitting crucial and important information to tactical level.
Decision support system (DSS): Using this system will help manager of restaurant to
formulate an effective decision relating to future business activities. The main aim of using this
system is to make such a crucial decision that will help them in competing with their rivals in an
effective manner.
4.2: Critical path
Critical path: This method provides the information regarding acceptance of longest
path of project which takes large amount of time of completion. This is so because if such path
of project is not completed on time then the project is not accomplished within stipulated period
of time. It is effective method which also helps in determination of the time period which is
needed to complete the whole project (Sethi and Zhang, 2012).
Path A: 1+4+7+8 = 10Days
Path B: 1+2+5+6+8 = 15 Days
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Path C: 1+2+3+7+8 = 17 Days
As per the above paths, it is observed that path C takes 17 days to complete which is
highest in comparison to Path A and B. So, as per critical path method, longest path means Path
C is selcted to accomplished their project within the given period of time.
4.3: Various investment appraisal tools
Project
Discounting
factor Discounted cash inflow
Year
Cash
Flow 12.00% Present Value
0 -190000 1 -190000
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total P.V 181435.2
Initial investment
of year -190000
NPV -8564.8
IRR 9.94%
NPV is calculated as -8564.8, it means the project is not acceptable. But IRR is calculated
as 9.94% which show good rate of return has attained from the project (Pourshahid, Richards
and Amyot, 2011).
CONCLUSION
It has been concluded from the above report that, there is huge importance of research to
make their plans successful in market. To conduct their research two methods are used primary
and secondary method of data collection. It helps the management of restaurant to enhance their
decision making power. There are large number of methods like mean, median and mode to
interpret important information from collected data.
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