Restaurant Business Project Report

This project report focuses on analyzing the financial aspects of a restaurant business, employing various tools to make informed decisions. The report includes data collection, analysis techniques like IRR calculation, and financial planning strategies to ensure the sustainability and success of the restaurant.

Business Decision
Making
Table of Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Data collection sources.....................................................................................................1
1.2 Research methodologies and sample designing...............................................................2
1.3 Questionnaire designing...................................................................................................3
TASK 2............................................................................................................................................4
2.1: Creating data by summarising information with the help of representative value..........4
2.2: Analysis of data by collected from the research .............................................................6
2.3: Evaluating measure of dispersion....................................................................................7
2.4: Benefits of using quartile, percentile and coefficient correlation...................................8
TASK 3............................................................................................................................................9
3.1: Various graphs and charts...............................................................................................9
3.2: Trend line.....................................................................................................................13
3.3: Covered in PPT.............................................................................................................14
TASK 4..........................................................................................................................................15
4.1: Use of data methods in decision making ......................................................................15
4.2: Critical path ..................................................................................................................15
4.3: Investment appraisal tools.............................................................................................16
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business decision making is an essential aspect for every concern organisation which is
associated with financial and non-financial activities. They need to take crucial decisions on the
basis of their daily operations. The main objective of this specific report is to collect various
reviews and feedbacks from various number of customers that are visiting to Food for Friends
restaurant (Groebner and et. al., 2011). By the help of wide range of techniques use during the
research in order to make proper interpretation of various aspects such as Standard deviation,
mean, median and mode etc. Food for Friends is a restaurant that is used to deliver the best
quality of products and services in UK market.
In this report, it has be explain various data collection techniques for the purpose of
conducting a well organise research. A set of questionnaire is being filed from number of
responded to analyse reviews of customers. Some specific charts and graphs are taken in order to
plot information those are gather from the research process. Examination of investment appraisal
techniques to make a well effective decision-making.
TASK 1
1.1 Data collection sources
In order to conduct a well organised research, it is essential for the researcher to use one
of the best data collection sources that can be beneficial for them. By the right selection of
sources, chances of getting better results would be enhanced. The primary objectives of
conducting this particular research is to determine about total impacts and experiences of
customers those are visiting to Food for Friends restaurant (Ferrell and Fraedrich, 2015). There
are mainly two sources of data collection which are explained underneath:
Primary sources: This happens to be the most reliable source because information is
collected for the first time from any research. The chances of biasses is very much low because
of real data. By the help of this sources decision-making would be more positive and accurate. It
consists of some useful techniques such as:
Survey: It refers to face to face communication with customers and collect necessary
view points and feedbacks that are being offered by the restaurant. It is known as a systematic
measurement of respondent’s perception.
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Questionnaire: It is a set of written questions that consist of multiple choice options that
provide customers certain right to present their view as per their thinking.
Online: It refers as data collection by the way of voting certain comments over online
mode. It covers wide range of areas in order to get valuable details.
Secondary sources: This is said to be a crucial process of collecting data from various
sources such as articles, magazines and newspaper in which information is already presented
(Shapiro and Stefkovich, 2016). These are termed as second hand data which is only used to
compare current research with the past one.
1.2 Research methodologies and sample designing
It is vital for researchers to use suitable techniques of data collection methods so that the
results can be achieved in an economical manner. All the information gather during research
work is use for the purpose of making decision regarding betterment of restaurant business. In
order to make attractive report, it is crucial to conduct primary research because it is free from
any biases and unethical means (Tufféry, 2011). The problems which is being face by customers
during visiting Food for Friend restaurant can easily be resolved through using customer
feedbacks. For this purpose, questionnaire is the best option to collect information in best
suitable way. Types of research methods:
Descriptive vs Analytical: It consists of surveys and fact or enquiries of various kind of
issues. Whereas, analytical method uses facts or data those are already presented and evalute
those to make critical analysis of the material.
Quantitative vs Qualitative: For the purpose of making measurement of total quantity
or amount of results from the research quantitative research method is being used. While, the
other one is related with quality of kind arises in a research-practice.
Sampling designing: In order to identify outcomes in best manner, they needs to collect
few samples from selected number of group. This can be categories into various modes such as:
Random sampling: This techniques is utilise over selected number of group out of a
population (Xu, 2015). It is unbiased survey techniques which is going to be use under this
specific research.
There are some other sample techniques are also those are helpful in research work such
as Quota, stratified, cluster sampling and so on. In this research work total of 60 respondents is
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used out of total population. Some crucial aspects those are cover in questionnaire forms are
mention below:
 Quality of cuisine
 Service delivering by staffs
 Price
1.3 Questionnaire designing
Research base on customer experiences and reviews about Food For Friend Restaurant
Questionnaire
Name:
Gender:
Age:
Q1. Do you regularly visiting to Food for Friends restaurant?
(a) Yes []
(b) No []
Q2. Do you think that opening new restaurant in London market will be beneficial for them?
(a) Yes []
(b) No []
(c) Can't say []
Q3. What is more attractive in Food for Friends that can drawn customer toward them?
(a) Multiple-cuisine []
(b) Service deliver []
(c) Surroundings []
(d) Other []
Q4. Is quality of food maximises satisfaction level of customers ?
(a) Satisfactory []
(b) Highly satisfactory []
(c) Dis- satisfactory []
Q5. Is price charged for foods in Food for friends from customers is economical?
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(a) Yes []
(b) No []
Q6. Can Food for Friends restaurant attract people of London towards them?
(a) Yes []
(b) No []
(c) Can't say []
Q7. Are the customers of London need new dishes to be served in?
(a) Breakfast []
(b) In main course []
(c) Can't say []
Q8. Which location or street is more profitable for opening new restaurant?
(a) Shopping mall []
(b) Country side []
(c) Prime location []
(d) Other []
Q9. Are they satisfy with the ambience of Food for Friends restaurant?
(a) Highly satisfied []
(b) Moderate satisfied []
(c) Dis- satisfied []
Q10. Feel free to provide valuable feedback and comments
________________________________________________________________
TASK 2
2.1: Creating data by summarising information with the help of representative value
Q1: Do you regularly visiting to Food for Friend restaurant?
Particular Respondent in %
(a): Yes 40
(b): No 20
Total 60
4

Mean 30
Median 30
Mode 0
Q2: Opening new restaurant in London market will be beneficial for them ?
Particular Respondent in %
(a): Yes 45
(b): No 10
(c): Can't
say 5
Total 60
Mean 20
Median 10
Mode 0
Q3: What is more attractive in Food for Friend that can drawn customer toward them ?
Particular Respondent in %
(a): Multiple-cuisine 25
(b): Service deliver 15
(c): Surroundings 12
(d): Other 8
Total 60
Mean 15
Median 13.5
Mode 1
Q4: Are quality of food offers to customers is ?
Particular Respondent in %
(a): Satisfactory 15
(b): Highly
satisfactory 25
(c): Dis- satisfactory 20
Total 60
5

Mean 20
Median 20
Mode 15
Q5: Did Price charged for foods in Food for friends from customers is economical ?
Particular Respondent in %
(a): Yes 55
(b): No 5
Total 60
Mean 30
Median 30
Mode 0
Q6: Is Food for friend restaurant can attract people of London toward them?
Particular Respondent in %
(a): Yes 35
(b): No 15
(c): Can't say 10
Total 60
Mean 20
Median 15
Mode 5
Q7: Are the customers of London needs new dishes to be serve in ?
Particular Respondent in %
(a): Breakfast 25
(b): In main course 30
(c): Can't say 5
Total 60
Mean 20
Median 25
Mode 0
6

Q8: Which location or street is more profitable for opening new restaurant ?
Particular Respondent in %
(a): Shopping mall 22
(b): Country side 18
(c): Prime location 15
(d): Other 5
Total 60
Mean 15
Median 16.5
Mode 2
Q9: Do satisfy with the ambience of Food for friends restaurant ?
Particular Respondent in %
(a): Highly satisfied 30
(b): Moderate
satisfied 20
(c): Dis- satisfied. 10
Total 60
Mean 20
Median 20
Mode 0
2.2: Analysis of data by collected from the research
In order to analyse results collected from total sales incur by food for friends restaurant
during past year they need to use measure of central dependencies those are effective enough to
deliver best results to the researchers (Zolfani and et. al., 2013). The data taken in based on
assumptions.
Year Sales Net Profit
2008 3210 1100
2009 3350 1258
2010 3800 1470
2011 4500 1550
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2012 5850 1600
2013 6000 1850
2014 5225 1800
2015 5870 2000
2016 5900 2150
2017 6550 2500
Sales Net profit
Mean 5025.5 1727.8
median 5537.5 1700
mode 3210 1100
Mean: These are said to be expected value which is collected from total sales and net
profit of restaurant. It is use for the purpose of expressing data in order to get certain idea,
thought and facts. In the above, it has been seen that mean value of sales and profit is 5025.5 and
1727.8 respectively. Mean: ∑X/N
Median: It has been observe that in case of even number of observation there is no
individuals mid value. It is mainly categories as mean of two mid value collected from the given
set of numbers (Schmoldt and et. al., 2013). From the above calculation, it is 5537.5 and 1700
respectively.
Median: [L1 + (N/2) – c/F*i]
Mode: It is happens to be the set of data value which is occur more often. It is consider as
those value which is more likely to be use as a sample (Mean, Median, Mode and Range, 2017).
In case of total sales and net profit, they are getting 3210 and 100 respectively as a mode value.
Mode: L + h ( fm – f1 / 2fm – f1 - f2 )
2.3: Evaluating measure of dispersion
Year Sales Net Profit
2008 3210 1100
2009 3350 1258
2010 3800 1470
2011 4500 1550
2012 5850 1600
2013 6000 1850
8

2014 5225 1800
2015 5870 2000
2016 5900 2150
2017 6550 2500
Particular Sales Net profit
Minimum range 3210 1100
Maximum
range 6550 2500
Standard
deviation 2361.7 989.94
Correlation
coefficient 0.89
Standard deviation: It a systematic methods which is utilise for the purpose of
identifying total risk which is involve during the research process. It is available for making
crucial decision making in order to enhance productivity of Food for Friend restaurant.
Standard deviation: √∑Fdx2/N – (∑Fdx/N)2
Variance: It is an essential procedure which is originated from squaring value of mean in
order to analyse standard deviation. It consists of actual and standard cost which is available in a
research process. Formula: S2 = ∑(X – X )2 / n-1
2.4: Benefits of using quartile, percentile and coefficient correlation
Quartile: It is known as a type of quantile which is categories into three equal parts. First
quartile (Q1) belongs to mid number among smallest value or median of data set. Whereas, Q2 is
median of information. In Q3, is the mid value among median and highest data in a given data
series.
Percentile: It is use for the purpose of measuring values in statistic that could indicate
total value low in a given percentage of particular set of observation. The important of this is that
underlying assumptions can easily be determine (Yager and Kacprzyk, 2012).
Coefficient correlation: It is use for the purpose of identifying relationship among two
set of variables. The major advantages of selecting this specific method is to gain quantitative
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data value which is easily examine. In the above research, it is calculated as 0.89 which is said to
be neutral.
TASK 3
3.1: Various graphs and charts
Q1: Do you regularly visiting to Food for Friend restaurant?
(a): Yes (b): No
0
5
10
15
20
25
30
35
40
45
40
20 Respondent in %
Q2: Opening new restaurant in London market will be beneficial for them ?
(a): Yes (b): No (c): Can't say
0
5
10
15
20
25
30
35
40
45
50
45
10
5
Respondent in %
Q3: What is more attractive in Food for Friend that can drawn customer toward them ?
10

25
15
12
8
(a): Multiple-cuisine
(b): Service deliver
(c): Surroundings
(d): Other
Q4: Are quality of food offers to customers is ?
(a): Satisfactory (b): Highly satisfactory (c): Dis- satisfactory
0
5
10
15
20
25
30
15
25
20
Respondent in %
Q5: Did Price charged for foods in Food for friends from customers is economical ?
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(a): Yes (b): No (c): Can't say
0
5
10
15
20
25
30
35
40
35
15
10
Respondent in %
Q6: Is Food for friend restaurant can attract people of London toward them?
35 15
10
(a): Yes
(b): No
(c): Can't say
Q7: Are the customers of London needs new dishes to be serve in ?
12

25
30
5
(a): Breakfast
(b): In main course
(c): Can't say
Q8: Which location or street is more profitable for opening new restaurant ?
(a): Shopping mall
(b): Country side
(c): Prime location
(d): Other
0
5
10
15
20
25
22
18
15
5
Respondent in %
Q9: Do satisfy with the ambience of Food for friends restaurant ?
13

30
20
10
(a): Highly satisfied
(b): Moderate satisfied
(c): Dis- satisfied.
3.2: Trend line
It is essential for the researchers to identify positive outcomes by estimating for future.
This would only be possible through analysing trend line chart. In a trend line a well effective
straight line is being drawn on a column chart that can be identify various problems and
outcomes those are arises in a research process (Aharoni, Tihanyi and Connelly, 2011). By the
help of this particular graphs, directions to make results in order to attain better outcomes for
upcoming business growth.
Year Sales Net Profit
2017 7500 2100
2018 7650 2250
2019 7950 2500
2020 7850 2560
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1 2 3 4
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
7500 7650 7950 7850
2100 2250 2500 2560
Trend line
Sales
Linear (Sales)
Net Profit
Linear (Net Profit)
From the above chart, it has seen that there is increase in total sales on a regular basis.
Whereas, net profitability of the restaurant is also enhanced during the next coming times. With
the use of trend line, it has been seen that there is direct impacts on performance of food for
friend restaurant. With constant increase in sales volume they can get maximum profit during the
year.
3.3: Covered in PPT
3.4: Formal report
To
Restaurant Managers
Date: 7th February, 2018
Subject: “ Survey regarding customers experiences and reviews about Food for Friend
restaurant”
Introduction:
In the above research, it has been analysed that various customers reviews and
experiences by using various sources of data collection techniques. This particular research is
all about determining certain issues and challenges which is arises at the time of conducting
research-practice.
Methodologies:
In this specific research work, researchers reached at certain solution by using right kind
of methods. It present insight regarding implementation of techniques. The primary sources of
data collection is generating more positive results as compare to other one.
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Findings:
According to proper analysis of research on total 60 respondents, it has been found that
plenty of customers are comfortable enough with the services those are being offered by Food
for Friends. They are offering both online and offline booking facilities to them. The ambience
of restaurant is more attractive which draws attention of customer to visits at once.
Recommendation:
In accordance with getting more positive results, restaurant managers needs to provide
singing and dancing events once in a week. It has been more easy to grab plenty of attraction of
outside customers those are visiting London for the first time.
Conclusion:
From entire evaluation, it has been concluded that there are few positive and negative
aspects those are arises in the research. The main limitation observe in this survey is associated
with time and cost for conducting overall research.
TASK 4
4.1: Use of data methods in decision making
There are various tools which is useful in order to make analysis of restaurant
performance and growth. Those are mention underneath:
MIS: It is known as management information system which is an effective system to
exchange information regarding financial position of food for friend. These can be applicable at
every level such as operational and tactical level (Pettigrew, 2014).
DSS: It is said to be decision support system which is use at strategic level by top
management for the purpose of making crucial decision-making. If any new rules and policies
which is introduce for the first time is needs to be spread over all levels.
OSS: Operational support system is a specific techniques that can be determine at entire
level to manage and record every possible problems those are arises at lower level of the
department.
4.2: Critical path
Network diagram: It is known as a graphical representation which shows interdependent
relationships among specific group and activities. These can be use for the purpose of analysing
the impacts over a project.
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Name of
activity Time period Predecessors
Nature of
market 3 days 0
Location for the
restaurant 5 days 1
Investment plan 5 days 1
Rate of return
on investment 4 days 3
Target market 8 days 1, 2
Advertisement 10 days 5
Lay out for
decision 3 days 6
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 Path A: 1,2,5,6,7 = 3+5+8+10+3= 29 Days
 Path B: 1,3,4=3+5+4= 12 Days
 Path c: 1,5,6,7=3+8+10+3= 24 Days
From the above network diagram only three best suitable paths can be drawn. Each of
them is taking respective days to complete a task. The one which is taking more time is the
critical path for this researchers (Sinha and Labi, 2011). They need to analyse the impacts so that
work should be completed in more quick time.
4.3: Investment appraisal tools
18