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Charley's Family Steak House: Case A

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by

Allie Gentili

on 8 October 2013

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Transcript of Charley's Family Steak House: Case A

Charley's Family Steak House: Case A
Charley's Marketing
Originally:
Menu posted on wall
None served breakfast
Coupons in local newspaper
Suggestions and New Ideas
Potential breakfast meals
Partnership/outsource
Liquor license
Desserts
Combos/daily specials
Social media
Loyalty cards & discounts
Potential Breakfast meals
Ties with partnership and outsourcing
-Opening of new 100-room motel near No.2
Offer breakfast options to guest at a discounted rate
Delivery services
Discount cards available at front desk
Liquor license, Combos, and Specials
Alcohol is a crucial revenue generator at a restaurant
Wine, cocktails and beer
Soft drinks, tea, and juices
-Combos and daily specials can increase sales and revenue.
Promote other not as popular items
Offers variety and better planning and expected values before start of meal

Social Media
-Facebook
"Likes"
Low cost and efficient advertising and marketing
Tell your friends!
-Instagram
Post and upload pictures
Tag and location services
-FourSquare/Yelp/Tripadvisor
Offer excellent service for positive reviews!
Loyalty Cards
"Charley Card"
Accumulation of points
Future discounts
Charley's Food Cost: 2008 Operating Plan
The original operating plan with 200,200 sales volume
Gross sales totaled $1,861,860
Total cost of food is $1,024,023
Charley's Food Cost: An Overview
Forecasted to be 55% of gross sales
Gross sales changed depending on sales volume
Sales volume changed from 200,200 to 179,200
This was a 10.489% decrease
The gross sales and cost of food sold decreased by the same ratio
Direct relationship
Lunch made up 40%, dinner 60%
Charley's Food Cost: New Operating Plan
New plan with 179,200 sales volume
Gross sales totaled $1,666,560
Total cost of food changed to $916,608
This is a $107,415 decrease after a 21,000 decrease in sales volume
Charley's Food Cost: Lunch
Lunch was 40% of gross sales at Charley's
Made up 22% of total food costs
For the higher sales volume:
Gross food sales: $600,600
Cost of food sold: $330,330
17.7% of gross lunch sales
For the lower sales volume:
Gross food sales: $537,600
Cost of food sold: $295,860
17.7% of gross lunch sales
Charley's Food Cost: Dinner
Dinner was 60% of gross sales at Charley's
Made up 33% of total food costs
For the higher sales volume:
Gross food sales: $1,261,260
Cost of food sold: $693,693
37.3% of gross dinner sales
For the lower sales volume:
Gross food sales: $600,600
Cost of food sold: $330,330
37.3% of gross dinner sales
Charley's Family Steakhouse: Case A
What would you do to improve Charley's marketing?
Discuss his food cost and cost of food sold percentages.
Full transcript