Case Study : Food And Drink

1620 WordsJul 31, 20167 Pages
2013). This proves that Beyond the Bean would at least be comparative and competitive to Fleetway’s prices while including food and drink. VII. Alcohol Decision Pros Cons - Up charging on drinks can lead to a higher profit margin, therefore bringing in more money - Some customers may find that alcohol makes them feel more relaxed to enjoy their games - Serving high-end, top-shelf alcohol may attract a mature crowd - All owners, managers, licensed security personnel and employees selling and serving liquor must complete a serving training course approved by AGCO (House, 2013, Exhibit 4) - Establishment will be periodically inspected by AGCO inspectors and police (House, 2013) - Increases company liability (House, 2013) - Additional time…show more content…
If they are open 30 days a month, this means they require 22 customers a day to breakeven with fixed costs. This seems incredibly feasible, especially considering that the target market of Western students is approximately 30,000 persons and most customers would be coming in as a group. If the average group of customers is 4 people - which feels like a sound approximation - this means they only need 6 groups a day to make a profit. Again, very feasible - especially since the longer the customer is there, the more likely they are to purchase second rounds of food and drinks. IX. Recommendation To summarize this document, we recommend that Beyond the Bean targets Western University students - with an intention to later appeal to the Young Professionals market - while using Facebook, a company webpage, Groupon and a once-a-week Quarter Ad in the Western Gazette for promotion and advertising. Furthermore, we recommend that they use the pricing strategy of $6 per person a day, while also suggesting that they do not offer alcohol, but instead return to this topic once Beyond the Bean is more established. We also recommend that they reconsider adding wifi because it would offer Beyond the Bean free advertising if customers add photos or make statuses about the cafe on social media
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