Room for Dessert & Case Summary Essay

1120 Words Apr 15th, 2014 5 Pages
Room for Dessert & Case Summary
Situation
This case presents a business plan for a startup company called "Room for Dessert" (RFD), which is a fine dining restaurant focused on serving a niche market that includes desserts and beverages such as tea, wine and spirits. RFD has created a business model which provides a strategy to differentiate itself from typical fine dining restaurants by offering an unpretentious atmosphere focused on serving affordable, high-quality desserts. The company expects to serve areas of high traffic, such as downtown Boston, and will target college graduates and professionals who earn a significant amount of income and enjoy socially interactive environments.
From a venture capitalist perspective,
…show more content…
The company has identified numerous opportunities for generating revenue, including:
• Restaurant sales
• Retail sales
• Special events
• Kiosks
• Catering
• Restaurant supply
• Catalogue sales
As previously mentioned, it may not be plausible to pursue each one of the opportunities identified by RFD. Therefore, I believe the company should hold off on several of the potential revenue streams until much later, if they even plan to pursue it at all. The following streams should be revisited by management and either delayed for the future or eliminated completely:
• Catering: The catering business contains a very different model than RFD plans to implement. The complications of offering such a service include increasing the number of employees, expanding product offerings, and potentially losing focus on the core aspect of RFD, which is a social, fine-dining experience.
• Restaurant supply: This strategy would require excess production of RFD's products, as well as the potential sacrifice of trade secrets. Also, because the company wants to focus on growth within their business, offering their products in other restaurants may cannibalize profits within their own restaurants.
• Kiosks: The use of kiosks as a potential revenue stream may result in a loss of perceived quality of the products, as fine-dining establishments are often viewed as a luxury item and therefore have limited

More about Room for Dessert & Case Summary Essay