Batching Strategy

This proves that the marketing strategy increased mid-week sales from 20% to 30%. This sales mix caused variances in the actual operating income and the budgeted operating income. The flexible budget, flexible-budget variances and sales volume variances provide further analysis into the profitability of the operations.

The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.

The purpose of this paper is assessing my strategy and decisions in the simulation Biz Café. Then, I will give my results and explain how I got there. However, there were many factors involved creating these results. In this simulation, everything was left up to me to decide how to run my new coffee shop. There were big decisions at the beginning you had to make to create the overall theme of your business. Then, I was to hire employees, buy goods, and act on specials decisions or react to good or bad customer reactions. This, I will explain more in the following paragraphs.

My chosen firm is Odoba Mexican Grill and it produces quality meals that aggressive prices. In other words, the aim of the restaurant is to offer wide variety of competitively priced meal choices. Price and quality are two important factors in the success of any food business. If prices go up too much or quality decreased significantly, the demand will go down. But another very important factor is income. With changes in income, demand can see a negative change. If income comes down for regular customers, they will cut down the quantity demanded. This means that regular customers who were frequently going for meals at the restaurant might choose to go less often or order smaller meals or low priced alternatives.

The first challenge was to determine whether or not batching dining room customer was beneficial. Batching means that the parties must reach a number of eight before they are seated. Two scenarios from the simulation show that batching is a better strategy that helped to increase profit. Utilization of the restaurant capacity is largest while batching. We could place 8 people at single table rather than placing group of 5 at one and 3 at another. The number of customers that can be served at one time highly influences the profit. According to the simulation it is more beneficial to use batching as average profit is $83.64 compared to average profit of -$282.29 when not batched. By using batching benihana restaurants are able to eliminate bottleneck that occurs in the waiting area/bar. By doing so they are able to see more customers in their restaurants which can be seen in the graphs to the right. They lose fewer customers and more diners are served.

With this set of assumption, we get a loss during first year of 56372.50 $. Running the simulation with 200 drinks sold (worst case scenario) we get a loss of 133635.50 $. If we run the simulation with the best case scenario option: 300 drinks, we obtain an EBT of 20890.50 $. The second year of activity the amounts are raising by a total of 18000.00 $, which represents those expenses occurring only once. Break Even point could be reached first year with the amount of 288 drinks sold, keeping prices constant. [149 words]

Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.

Also, teething problems with marketing, operations etc might not lead to optimum sales. Therefore, we will project only 60% of this figure as first year sales and use the estimated figure as the sales figure for Year 2. Over the planning period, starting from Year 2 onwards, sales are expected to grow at a rate of 3.9% every year, in line with industry estimates of the average growth of the restaurant industry in the US (Source: Mintel International, cited in section 6.0).

For my project, I ran Coffee-Roma, a coffee shop located in the business district of a large city. My simulation ran for 60 days. Over this timeframe, I hired 7 employees and earned gross revenues of $89,984.20. From those revenues, my net profit totaled $14,046.83. Below are the details of how I attempted to best run my business.

Diners spend less time at the bar, thereby forgoing high margin alchoholalcohol sales.us the bar is less profitable. However, the restaurant generated greater total revenue (is this true?)and since money and resources were not wasted, the overall profit of the restaurant was still greater. Another disadvantage of batching is that different group sizes come into the restaurant, causing delays in service for larger groups, such as in which customers may have to wait until an the entire eight-person table. quota can be filled and served. Batching may also cause some discomfort to customers who would not like to share tables and enjoy a more exclusivequieter dining experience.

This is because, when the condition of the current market is not doing well, some strategy in considering the increase in the foods price, introducing a new dish should be limited due to the less or limited spending of the customers. The best option to secure and have a constant business growth during these time is to have more promotions and value set meal to attract the customers.

If we look at the fast food industry today there is room for success. Based on RNCOS’ new US Fast Food Market Outlook 2010, fast food industry growth rate is strong. Especially, hamburger sales growth is reported at the healthy rate of 4.6% in 2008. The market is expected to grow to cross the $170 billion marks by 2010.It is believed that due to the economic meltdown, fast food industry is benefiting from people being more prices conscious. People who were enjoying nice means at fancier restaurants are now turning their choice of means to more economical ways.

In an intensely competitive market, how to satisfy a customer’s demand and make an efficiently advertisement are very important for e-commerce and e-business.

Great food, high-traffic location, and super decor -- all are important to the restaurant business. If you take a close look at what

The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.