RECOMMENDATIONS ON CAFÉ GREAT PROBLEM 1. From the category analysis graph , we see that tobacco products are generating maximum revenue out of all the other categories. RECOMMENDATION Increase the price of tobacco products as tobacco is an addiction and an habit forming commodity so its demand is inelastic so people will still come to café great even if we increase the prices slightly provided other USP’s of the café are still on .
2. We also observe that the amount of food being consumed is more than other quantities but the revenue generated from food is lower than that of tobacco because on an average ,tobacco is priced more than food items.Also, from the price change impact , covering the price of certain food items , decreases the quantity consumed .Example – Maggi thai style has seen a 60.5% decline in prices due to the change in price . RECOMMENDATION Increase the price of certain food commodities since the decrease in prices seem to have an adverse impact.
3. From the time of the day analysis , we see that from 9am till 10:30 am and from 2-6 am , the footfall is quite low . RECOMMENDATION So we should do back office and thin down the services so it will cut down the costs .
4. Regarding the price change impact , in liquor category which amounts to 7% of the total revenue , Carleberg and Tuborg account for the highest consumed quantities and their increase in prices resulted in decrease in quantity. We also see a similar trend in the second best selling beverage Cappucino where a 16.7% price increase led to 10.7% decrease in quantity . RECOMMENDATIONPrice relaxations in these categories is needed .
5. In Day of the week analysis , we saw that Saturday is the day where the footfall is maximum. RECOMMENDATIONTo introduce the concept of happy hours in other days and provide free mocktails offers or combo meals which will help increase the revenue .
6. After calculating the elasticity in the price change impact sheet i.e % change in quantity / % change in price , we see that items like NIRVANA HOOKAH SINGLE , N R G HOOKAH have a high elasticity . RECOMMENDATIONI would recommend we should increase the price of theseitems as it would increase revenue .
2. We also observe that the amount of food being consumed is more than other quantities but the revenue generated from food is lower than that of tobacco because on an average ,tobacco is priced more than food items.Also, from the price change impact , covering the price of certain food items , decreases the quantity consumed .Example – Maggi thai style has seen a 60.5% decline in prices due to the change in price . RECOMMENDATION Increase the price of certain food commodities since the decrease in prices seem to have an adverse impact.
3. From the time of the day analysis , we see that from 9am till 10:30 am and from 2-6 am , the footfall is quite low . RECOMMENDATION So we should do back office and thin down the services so it will cut down the costs .
4. Regarding the price change impact , in liquor category which amounts to 7% of the total revenue , Carleberg and Tuborg account for the highest consumed quantities and their increase in prices resulted in decrease in quantity. We also see a similar trend in the second best selling beverage Cappucino where a 16.7% price increase led to 10.7% decrease in quantity . RECOMMENDATIONPrice relaxations in these categories is needed .
5. In Day of the week analysis , we saw that Saturday is the day where the footfall is maximum. RECOMMENDATIONTo introduce the concept of happy hours in other days and provide free mocktails offers or combo meals which will help increase the revenue .
6. After calculating the elasticity in the price change impact sheet i.e % change in quantity / % change in price , we see that items like NIRVANA HOOKAH SINGLE , N R G HOOKAH have a high elasticity . RECOMMENDATIONI would recommend we should increase the price of theseitems as it would increase revenue .