Business Decision Making: Analyzing Restaurant Growth & Expansion

This presentation provides an analysis of business decision-making related to restaurant growth, specifically focusing on the potential expansion of Blackfriars restaurant. It includes a trend line analysis showing projected increases in sales and profits, suggesting that opening a second restaurant would be profitable. Graphs illustrate the historical sales and profit performance from 2008 to 2015, noting a decline in 2011 and subsequent recovery. The presentation also incorporates primary data, revealing that 90% of customers believe the restaurant offers good value for money. Furthermore, it explores the influence of the internet on customer dining decisions, with 50% of respondents using online resources to select restaurants. The presentation concludes with recommendations for enhancing promotional strategies based on customer feedback and market trends.

BUSINESS DECISION MAKING
TASK 3 (3.3)

3.3 BUSINESS PRESENTATION
Trend line
1 2 3 4 5 6 7 8
0
200
400
600
800
1000
1200
1400
f(x) = 15.7142857142857 x + 1143.03571428571
f(x) = 15.889880952381 x + 257.776785714286
Sales
Linear (Sales)
Profit
Linear (Profit )

CONTD…
 From the above mentioned trend line, it has been
analyzed that in the near future both sales and profit will
move in the upward direction.
 Hence, this aspect clearly indicates that plan in relation
to opening of second restaurant will prove to be more
profitable for firm.
 Further, on the basis of the existence of positive
relationship both sales and gross margin of the restaurant
will grow in the near future.

CONTD….
Sales and profit graphs
1 2 3 4 5 6 7 8
0
200
400
600
800
1000
1200
1400
Sales
Profit

CONTD….
Sales and profit graphs
1 2 3 4 5 6 7 8
0
500
1000
1500
2000
2500
Years
Profit

CONTD….
 The above mentioned graph entails that sales and profit
aspect of the restaurant is continuously increasing. From
the period of 2008 to 2010 sales and profits were
continuously inclined.
 However, in the period of 2011 sales and profit margin of
Blackfriars restaurant declined. Hence, to enhance both
sales and profit margin restaurant needs to make focus on
placing advertisement on social networking sites such as
Facebook, Twitter etc.
 This in turn provides information to the customers about
the exclusive dinning services offered by the restaurant.
Graph presents that at the end of 2015 sales of the business
organization inclined from £1150 to £1285.

CONTD….
 Further, profit margin of the firm was also increased in
the last 8 years along with the sales revenue.
 Hence, by taking into account all such factors it can be
said that restaurant is performing better to the large
extent.
 It indicates that by making proper management of the
business activities and functions owner will achieve
success from another restaurant.

CONTD….
Theme 1: Services offered by the restaurant gives high
value of money to the customers
Yes No
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No. of respondents
No. of respondents

CONTD….
 Outcome of primary data entails that 90% customers agreed
with the aspect that prices which are charged by Blackfriars is
highly effective. Hence, price is one of the main factors which
have high level of influence on the satisfaction level of
customers.
 Moreover, now customers take decision by evaluating the
prices which is charged by another firms for the dinning
services. In this regard, view points of the respondents clearly
entails that pricing policy of the restaurant is highly competent.
 On the other side, 10% respondents said that they not satisfied
with the pricing policy of the restaurant. One of the respondents
said that other restaurants charge less as compared to
Blackfriars.

CONTD….
Theme 2: Internet is the main factor which is undertaken
by the customers while taking decision about dinning
Internet
Discounting offers
Friends and family members
0%
20%
40%
60%
No. of respondents
No. of respondents

CONTD….
 From primary data, it has been identified that internet
surfing is done by the customers for the selection of
restaurant. Moreover, internet clearly provides deeper
insight to the customers about menu and price level.
 On the basis of such aspect 50% respondents support such
aspect. Further, 26.67% respondents said that they
consider discounting offers while taking decision about
making use of dinning services.
 Whereas, 23.33% customers said that they consider the
advice of friends and family members for selecting the
restaurant. Hence, business unit should consider such
aspect while framing promotional strategies and campaign.

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