Tutti Matti: Sales Increase

Topics: Lunch, Restaurant, Strategic management Pages: 4 (1256 words) Published: February 2, 2012
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.
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 competition. Solomon has established strengths and weaknesses that can affect her business which are outlined in Exhibit 1. In order for her to continue to strive and run a successful business she must consider the SWOT analysis and choose what is most important at this point in time for her business. Option 1 – Summerlicious Event

Solomon should accept the summerlicious offer to attract more customers. Also since this offer is only valid for two weeks and the full 3 course meal is at a prix-fixe of only $15 for lunch and $20 for dinner, she will attract more customers to learn about the restaurants quality and uniqueness. These customers will return during the regular season. By trying the summerlicious event this year, she can use it to determine the profitability and decide whether or not she will use this event to market her restaurant again in the future. At this stage of her business, she needs to be more focused on obtaining a strong customer base for lunch and dinner, instead of worrying about the revenues she may be losing out on by not participating in the two week event. It may be worth the risk to participate partly because of the SARS outbreak and seasonality that Solomon predicts. Exhibit 2 shows the estimated losses...
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