Business Decision-Making Report: Restaurant Expansion Analysis

This report analyzes the business decision-making process for a restaurant, examining sales, profit, and customer satisfaction data to assess the viability of expanding operations. The analysis includes graphical representations of sales and profit trends, demonstrating consistent growth and positive correlations. Primary data analysis reveals customer willingness to pay, informing pricing decisions. The report highlights high customer satisfaction levels and uses trend lines to forecast future growth, supporting the strategic decision to open a new restaurant in London. The document references relevant academic sources to support its findings and recommendations. The report concludes that the expansion plan is viable, offering an effective means to serve a larger customer base and increase profitability.

Business decision making
TASK 2

3.3 Business presentation
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Year
Sales ( ￡ )
Profit ( ￡ )

CONTD...
The above mentioned graphs clearly shows that sales
and profitability aspect of firm is continuously
increasing. It reflects that customers prefer to visit
the restaurant more time. Further, it also presents that
customers are highly satisfied with the services
offered by the existing restaurant.

Continued...
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f(x) = 15.3030303030303 x + 1288.33333333333
R² = 0.995238931491346
f(x) = 11.6848484848485 x + 115.933333333333
R² = 0.974444958250626
Trend line
Sales ( ￡ ) Linear (Sales ( ￡ )) Profit ( ￡ ) Linear (Profit ( ￡ ))

Continued..
Trend line of the firm depicts that sales and profitability aspect of the
firm will rise in the upcoming years. Thus, Restaurant will attain
success by opening the new restaurant in London. Hence, trend line
assists business organization in making strategic framework which
enables them in getting the desired outcome or success.

Analysis of primary data
￡ 10-20 ￡ 30-40 More than ￡ 40
0
0.1
0.2
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In %

The above graphs show that customers 25 customers
are ready to pay more than ￡ 40. Whereas, 25%
customers want to pay within the range of ￡ 30-40.
On the contrary to it, 12.5% respondents willing to
pay ￡ 10-20 for the dinning services which are
offered by restaurant. By taking into consideration
this aspect restaurant is able make suitable pricing
decisions.

CONTD..
Satisfied Highly satisfied Dissatisfied Highly dissatisfied
0
0.1
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0.5
0.6
In %

CONTD...
From the graphical presentation it has been assessed
that company large number of existing and
potential customers are highly satisfied with the
product or services which are offered by the
restaurant. Thus, business unit does not require to
make huge expenses on promotional plan. By this,
company is able to enhance its profitability by
reducing the expenses.

 From the above trend line it has been analyzing that sales and profit
of the firm will incline in the near future. Thus, the plan in relation to
the opening of new restaurant is more viable.
 Hence, by expanding the business operations and activities in the new
areas of London restaurant is able serve the large number of
customers in an effectual manner.
 Graphical presentation clearly presents that sales and gross margin of
the firm is continuously increasing. During the period of 2006 to 2015
sales of XYZ shows upward pattern.
 Due to the positive correlationship profit of XYZ also increases. This
aspect clearly shows that customer prefers to make use of the dining
services which offers by the restaurant.

REFERENCES
Byrne, P., McAllister, P. and Wyatt, P., 2011. Precisely wrong or roughly
right? An evaluation of development viability appraisal modelling.
Journal of Financial Management of Property and Construction. 16(3).
pp. 249 – 271.
Corsatea, T. D., Giaccaria, S. and Arántegui, R. L., 2014. The role of
sources of finance on the development of wind technology. Renewable
Energy. 66. pp. 140-149.
Day, A., 2005. Mastering Financial Mathematics with Excel: A Practical
Guide for Business Calculations. Financial Times/Prentice Hall.
Ferrell, O. C. and Fraedrich, J., 2014. Business ethics: Ethical decision
making & cases. Cengage learning.