Nick's Pizza and Pub Case Study Essay

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Nick’s Pub and Pizza Case Study By Daniel Rottlaender MGMT2603221 Nick’s Pub and Pizza restaurant franchise was just one of many companies that got into financial trouble after the economic crisis of 2009. In the case of Nick’s Pub and Pizza however, it had serious consequences due to the fact that the owner of Nick’s Pub and Pizza was planning on expanding the franchise from only two restaurants to five. Unfortunately, the recession caused by the depression of 2009 caused guests count to drop by twenty percent leading to revenues decreasing by almost $1 million. On top of the crisis caused by the recession, the management of both restaurants struggled to keep the costs as low as possible. Every single week they did a count on their…show more content…
The low costs that are offered in this sit-down restaurant also attract people from many diverse backgrounds. All this leads to the fact that increasing costs at Nick’s Pub and Restaurant wouldn’t be a solution since it would probably cause significantly less people visiting the restaurant, which would lead to revenues decreasing even more. After one 24-year old employee with eight years’ experience in at Nick’s Pub and Pizza was able to fix the problems by talking to the staff, it was obvious that the input of the eomplyees could be enormously helpful to fix the situation. Therefore, one possible solution would be to fire the management and put together a management that consists of elected representatives of the different areas in the restaurant such as kitchen, bartenders, servers etc. That solution would provide input from every single area at the restaurant, less costs for management, more effective costs control and restaurant leaders that actually know that Nick’s Pub and Pizza is supposed to be about. Another thing about this solution would be the opportunity to slightly raise salaries of the employees. That would become possible due to the disappearance of actual managers who normally make more money than the actual employees. Of course, the elected leaders should get a slightly bigger salary raise than the “normal” staff members. This

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