preview

Case Study: The Crescent City Bar And Grill

Decent Essays
Open Document

The Crescent City Bar and Grill Sales Promotion As the partial (50%) owner of The Crescent City Bar and Grill, located in New Orleans, Louisiana, I am in part responsible for the initiation and monitoring of all sales promotions adapted by this establishment. Currently, Jake, the other partial (50%) owner, has created a new happy hour sales promotion, which applies significant discounts to patrons during the happy hour from Monday thru Friday. There are several objectives a business might expect when any sales promotion is employed, such as boosting profits, maintaining the patronage of loyal customers, attracting a new target market, increasing community awareness of the business, introducing a new product to consumers, or even as a means …show more content…

As an illustration, the sale of alcohol has increase by five percent and new customers are patronizing the restaurant, but overall expenses have increased by fifteen percent, food sales have not increased, labor costs have increased, and wait staff has vocalized receiving lower overall tips. In fact, the figures show the sales promotion is definitely not supplying a justifiable Return on Investments or ROI. A ROI is defined as “a cost/benefit comparison of the cost of an investment or activity compared to the financial and non-financial benefits that result” (Tips for Cost / Benefit Analysis and ROI, 2015). In addition, there is a mathematical equation used to calculate if a ROI is a financial gain or a financial loss, the equation (ROI = net gains/total costs) divides the total cost of the promotion into the net gains and reveals if a promotion has created a profit or resulted in a loss for a business (Economic Justification: Measuring Return on Investment (ROI) and Cost Benefit Analysis, 2009). Indeed, the five percent gain on alcohol sales cannot produce a financial gain when total costs to perform the promotion increased by a much larger fifteen …show more content…

For example, the prevailing free food offerings would have to end, and in its place a half priced appetizer special could be offered to encourage new patrons to sample the establishment’s extraordinary food. Additionally, there is scientific evidence, published in the journal Cell Metabolism, showing appetizers do aid in increasing one’s appetite, which in turn will add to a boost in entrée and maybe even dessert sales for the bar and grill (Appetizers Really Do Increase Your Appetite, 2006). Another benefit of charging for all food would be a rise in customer check totals, leading to higher tips received by the wait staff, which will create satisfied employees and a much more pleasant working

Get Access
Related
Get Access