Lemon Chillies Sales Decline: A Research Report on Marketing and Staff

This report investigates the declining sales at Lemon Chillies, attributing the issue to poor marketing strategies and staff-related problems. The analysis reviews literature highlighting the impact of service quality, pricing, and marketing effectiveness on restaurant sales. It identifies a research gap concerning strategies for improving sales and profitability through employee recruitment, loyalty, and internal marketing programs. The conceptual framework links poor marketing and staff issues to decreased profits, emphasizing the need for effective solutions. The report uses a literature review to identify potential causes and suggest future research directions, aiming to provide insights into reversing the sales decline at Lemon Chillies. Desklib provides access to similar reports and solved assignments for students.

Reasons behind declining sale at
Lemon Chillies
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Quality and Price Affecting Sales
Martínez-Donate et al. (2015) evidenced that perceived
superior quality and price affects sales of the restaurants.
For instance, these researchers also revealed that quality
of services and food impacts the increase or decreased
of sales in restaurants. Moreover, the prices set for the
foods and services also affects the sales. Adjusting price
asked on seasonal ingredients, mixing low coat and high
cost items within the menu and pricing increasingly
volatile foods within the menu at market prices can
impact sales of the restaurants either positively or
negatively.

Decline in Sales
Lebersorger and Schneider (2014 ) revealed that there are
two reasons that has contributed to decreased sales in the
restaurants over years. They are poor marketing strategies
and staff related issues. These researchers have also stated
that poor marketing strategies in restaurants is observed in
case they are involved in poor market niche identification and
poor company objectives with lack of profitability strategies.
Moreover, staff issues in restaurants such as improper
training to them regarding offering proper restaurant services
and improper goal setting to offer better front desk service to
consumers contributes to decreased sales in restaurants.

Decrease in Profits
Cornelsen et al. (2017) indicated that profit
margins of restaurants is deemed to decrease
because of numerous significant factors.
These researchers also indicated that waste
and thefts are major threats to the business of
the restaurant. Less availability of energy
efficient kitchen equipments increases utility
costs of the restaurants that further decreases
their profit margin.

Research Gap
From analysis of the previous literature on the reasons
behind decreasing sales within the restaurants it has been
gathered that there are decreased research on revealing the
ways in which restaurants improve sales and profitability
(Lopez et al. 2017). Previous researches also failed to explain
the ways in which recruiting right employees, staff loyalty
increases consumer loyalty and internal marketing programs
decreases company sales and profitability. Addressing this
research gap, the current research will investigate the ways
in which marketing strategies failure and staff related issues
results in decreased sales of Lemon Chilies.

Conceptual Framework
Potential causes
of declining sales
Poor Marketing
strategies
Staff related
issues
Decrease in
profit

References
• Lebersorger, S. and Schneider, F., 2014. Food loss rates at the food retail,
influencing factors and reasons as a basis for waste prevention measures. Waste
management, 34(11), pp.1911-1919.
• Myers, J.S. and Sbicca, J., 2015. Bridging good food and good jobs: From secession
to confrontation within alternative food movement politics. Geoforum, 61, pp.17-
26.
• Cornelsen, L., Mytton, O.T., Adams, J., Gasparrini, A., Iskander, D., Knai, C.,
Petticrew, M., Scott, C., Smith, R., Thompson, C. and White, M., 2017. Change in
non-alcoholic beverage sales following a 10-pence levy on sugar-sweetened
beverages within a national chain of restaurants in the UK: interrupted time series
analysis of a natural experiment. J Epidemiol Community Health, 71(11), pp.1107-
1112.
• Martínez-Donate, A.P., Riggall, A.J., Meinen, A.M., Malecki, K., Escaron, A.L., Hall,
B., Menzies, A., Garske, G., Nieto, F.J. and Nitzke, S., 2015. Evaluation of a pilot
healthy eating intervention in restaurants and food stores of a rural community: a
randomized community trial. BMC public health, 15(1), p.136.
• Lopez, N.V., Folta, S.C., Glenn, M.E., Lynskey, V.M., Patel, A.A. and Anzman-Frasca,