Essay on Tutti Matti: Sales Increase

1262 Words Feb 13th, 2012 6 Pages
Tutti Matti – Practice Case

This case meets the conditions of my signed Academic Integrity Statement on file with the Instructor.

Critical Issues
Alida Solomon is currently facing these critical issues is her restaurant, Tutti Matti. 1. How to continue to expand her business and avoid problems during the SARS outbreak. 2. How to build awareness and obtain new customers. 3. How to make better use of her time and resources.
Analysis
Tutti Matti has been open for 6 months and has already become a profitable business earning sales of $210,000. Her plan is to finish the year with sales of $500,000. The SARS outbreak, decrease in tourism, seasonality and family and friends have decreased attendance at the restaurant and
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In order to attract new customers she can introduced promotions during those days to not only have customers come for dinner, but also as a way to attract new clientele. Similar to how some other restaurants increase sales, Tutti Matti can introduce Pasta Mondays and Tuesdays, offering a discount on the pasta dishes. Solomon should consider offering dinner combos that put smaller portions of various dishes in one combination. This allows customers to taste a variety of Tuscan cuisine and may be intrigued to try more the next time. Often people may try one dish and dislike it and may not come back to the restaurant. Another way to attract smaller families is by offering a kids menu and also offer free wine tasting before the customers have ordered. The customers may enjoy the sample of wine and become interested in trying more.
Option 3 – Advertising / Website
In the first 6 months of business, Solomon has only spent $500 on advertising. She intends on increasing her annual budget up to four times for the next year. This gives her $4000 to spend on advertising. One of the emerging trends is creating a website. The website would cost her $2088 to start up and an additional $588 to maintain each year. Exhibit 3 shows calculations of Advertising. The website is a good way to promote the website, offer coupons, have contact information, menu items and prices, and ability to book
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