Tutti Matti

Critical Issues/Opportunities

In order to succeed, Solomon will need to focus on:

* Increasing and promoting sales so that Solomon can continue business as usual—which is essential for the survival of the business.

* Creating and establishing a market presence and name for good quality food and service so that sales and profits increase.

Opportunities

Location: Nearby theatre, entertainment, pub and nightclub districts: customers may wish to come much later at night during the weekends. Dinner: Average dinner bill is $50 before taxes and tip (which means about 3 times that of the lunch). Most ordered alcoholic drinks. If alcoholic drinks are inelastic, then it means that increasing the price may not lower demand, but increase profits. Private Functions: Promote private functions—by increasing the number of private functions held, it allows the employees to focus on producing only a few decided items. Allows 'mass-production' of each item, and so will be much faster to produce than cooking various meals for different clients.

Strengths (ability to):

Financial: Low initial investment of only 380,000. No major expenses anticipated in the next year: if she is able to increase her sales, and her FC does not change, she will increase the profitability of the business. Solomon purchases most of the ingredients herself, and so saves $15,000 annually. Location: Short walk in each direction to heavy traffic district. Closer than Fazooli's and Terroni's to the Night Club District. Operations: Open concept kitchen pleases customers and sets Tutti Matti aside from the other restaurants. The warm, friendly atmosphere contributes to the level of customer service and personalization—this is not witnessed in fast food joints that many of the young professionals no longer want to visit. Solomon ensures that the finest quality ingredients are used—affects the quality of the food. Most are Italian restaurants are focused on pizza.

Focus here:

Open for longer hours,...