The Polaris Cafe

1589 Words Nov 17th, 2008 7 Pages
Marketing Case Analysis of

“The Polaris Café”

The case presented involves the Polaris Cafe’ located in New Brunswick, New Jersey. The Polaris Café was founded by four partners: Ben Reynolds, responsible for marketing and public relations; Kyle Roman, the overall manager; Sid Carter, responsible for the financial management, potential investors, and obtaining bank loans; and Dominick Trioli, responsible for payroll and purchasing. New Brunswick is a college town, home to Rutgers University and several large corporations, such as Johnson & Johnson.
The partners have chosen to sign a long-term lease in a newly constructed building that will house retail space on the first floor and the remaining floors will house additional office
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By freeing up payroll dollars I would hire an experienced accountant that would provide better projections based on more accurate data. I feel an experienced accountant that had worked in the food service industry would have been able to advise them that they did not need to budget on a yearly sales forecast that was divided by 52 weeks in the year. This shows poor budgeting skills because they are trying to obtain a heavy student mix and the students are not in the area for the entire year.
Financial forecasting is such an integral part of any successful start up business and there are major issues with the way it has been done.
I would also look at the existing data from sales to see if the original market segmentation has followed through to the actual sales numbers. With the influx of students during the school year and the absence of students over the holidays and summer, if the tapas area is not producing the necessary sales then the restaurant might need to devote more space to the fine dining establishment. As it currently stands, the tapas bar is composed of 75% of the floor space, except in the summer when it commands 80% of the floor space, which includes the patio area. The fine dining area is limited to only 25% of the sales, except during the summer when it

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