Question

this question is from the text small business management in the 21st century:

Question 7: In the Appendix (Chapter 16 "Appendix: A Sample Business Plan"), you will find the business plan for Frank’s All-American BarBeQue.

This plan examined several possible locations for a second restaurant. Frank and Robert considered several factors when evaluating alternative towns as possible locations. Some of these included population size, average income, travel times, and percentage of the population.

Based on the data, they selected Darien, Connecticut. Do you agree with the decision? Why or why not?

Do you think other factors should have been considered? If yes, what would you recommend and give your reasons (briefly) why? If not, why do think they have used sufficient information to make their decision?

Answer 1

Answer

The main factors used are

• population size,
• average income,
• travel times, and
• percentage of the population.

No I dont agree with the decision because of the lack of some other important factor to be considered while taking the decision of second restaurant .As the mentioned factors are important but they are not sufficient because The concept of business is a vital role and it is not there ,The marketing strategy is absent , The concept of restaurant concept must be carefully researched and planneds before its launching .Another important missing thing is the location of restaurant , also whether it will serve seasonal dishes or it will have random menu for it customer is lacking so target customer based business plan is not there that is why I dont agree with the decision .

Answer 2

Although I mentioned above the missing element but I want to add certain thing more in order for better decision for the second restaurant and here the following thing I would recommend .

• A proper documented concept of the second restaurant with well planned and carefully researched objective mentioning the needs of the customers in that area and why Customer will prefer us only ? what we can provide them to make them permanent part of our family ?
• Location -It must be such that it covers the centre of the location where everyone could reached easily and see.
• Staff management - Again this should be given priority in taking the decision because the capacity planning is very important in order to smoothly un the second restaurant and it should be cleared
• Target customers,Marketing startegy ,competition -these factors also must be taken into account about which customer age group , adult , children ,senior citizen we are targetting , allowing discount or price discrimination to whom etc must also be considere dbefore taking the decision .

Hence I would recommend the above .

Have a good day !