Crusty Pizza Restaurant: Forecasting using Regressions
Group One: Jenna Baseler and Zachary Kain
MBA 610-T304
Introduction
The purpose of this case is to determine which key variables drive Crusty Pizza Restaurant’s monthly profit and then forecast what the monthly profit would be for potential stores. Based off of this information we will be able to make a recommendation to Crusty Dough Pizza Restaurant on which stores they should open and which they avoid. The group was provided 60 restaurants’ data that included monthly profit, student population, advertising expenditures, parking spots, population within 20 miles, pizza varieties, and competitors within 15 miles. For the potential stores we were given all of this
…show more content…
In a regression analysis we found that the correlation coefficient is .5862 with a very high level of confidence (see Appendix A for detailed Regression Analysis Data). We also found that the coefficient of determination was .3437. This shows that since there is a correlation between student population and profits, the impact student population has on the profits is approximately 34%. We also found from our regression equation that an increase in the student population by 1 student can increase profit by $1.07. You can see the positive trend in the scatter plot below.
Competitors within 15 Miles Competition is a strong driver in the free enterprise of America. Crusty Dough Pizza Company is no exception. While Crusty Dough Pizza Company varies in its number of competitors within 15 miles by store, this variance does not seem to correlate to higher or lower profits. When looking at the regression analysis completed using competitors within 15 miles as the independent variable and monthly profit as the dependent variable, we find that the correlation coefficient is a very low .133. It’s safe to say there is it not a correlation between these two figures (see Appendix A for detailed Regression Analysis Data).
Multiple Regression
As you can see from our findings, two main correlations we found that impacted monthly profit are monthly advertising expenditures and student population. We can use
The objective of this report is to analyze the business situation wherein Domino 's operates in the market and to obtain an understanding on the strategic analysis tools that can be used to acquire a new competitive advantage against their major rivals such as Pizza Hut, Eagle Boys, La Porchetta, etc. The intent of the assignment is to learn the factors that caused increase in profitability and sales and defining the actions necessary to further improve the QSR segment rank.
In business there are no guarantees for success. Skills, knowledge, great motivation and honest evaluation of ability to carry out and then manage the operations are just some of the requirements that determine the probability of the successful project. Success is never automatic and does not rely on luck. There are no ways to foresee or eliminate all of the risks that might affect successful operation of a new business. However detailed planning, thorough analysis and well-carried out organization create good potential for a new business. In the provided case study, we will assess the probability of success for Icedelights franchise in Florida. Analysis will be done through evaluation of each step in the decision making process, close
The case involves the decision to locate a new store at one of two candidate sites. The decision will be based on estimates of sales potential, and for this purpose, you will need to develop a multiple regression model to predict sales. Specific case questions are given in the textbook, and the necessary data is in the file named pamsue.xls.
Pam and Susan’s department stores are in the process of opening a new business unit. There are two locations that are being considered for the new store and decision is based upon estimates of sales for both of them. My job is to use data gathered from each store as well census data in store’s trading zones to predict sales at both of the sites that are being consider for their newest store.
The Regional Food Manager for Ye Olde FoodKing Company has retained Mark Craig of Blue Steel Consulting to perform a regression analysis to forecast demand of your product. The four characteristics readily available included price, competitors’ price, average income, and market population. The results of each regression analysis are presented at the end of this memo. The remainder of this memo describes the regression analysis used and limitations to the data available. Running a regression provides a statistical procedure to estimate the liner dependency of one or more
This paper provides a summary of our analysis of the data obtained for 60 Crusty Dough Pizza Company restaurants. We compared 16 pizza store characteristics to monthly profit in order to determine the best indicators of success. The results of this analysis may be used to determine the store services and attributes that have the most bearing on profitably.
Also, teething problems with marketing, operations etc might not lead to optimum sales. Therefore, we will project only 60% of this figure as first year sales and use the estimated figure as the sales figure for Year 2. Over the planning period, starting from Year 2 onwards, sales are expected to grow at a rate of 3.9% every year, in line with industry estimates of the average growth of the restaurant industry in the US (Source: Mintel International, cited in section 6.0).
15. See the attached “Regression Data I”. We are using the number of radios, TVs, and DVD players stocked to predict the profit, revenue, and cost for future periods. Based on the output,
To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail
Perfect pizzeria is staffed primarily from college and high school students; however, when hiring for management positions there is no systematic criteria in which to select the best-qualified person for the job. Those currently occupying leadership positions do so without the proper leadership training or experience to handle the open communication required to build team cohesion in a food franchise environment.
Kristen and her roommate are preparing to launch Kristen’s Cookie Company in their on-campus apartment. The company will provide fresh cookies to hungry students late at night. Evaluation of the preliminary design for the company’s production process will be required in order to make key policy decisions, including what prices to charge, what equipment to order and how many orders to accept, and to determine whether the business can be profitable.
Tony has asked you for some assistance in interpreting the data that he has collected. In particular, he needs to know if the true average delivery time for Pronto Pizza is greater than 25 minutes. Use the data in the file PRONTO.XLSX to answer his question. A description of this data set is given in the Data Description section. Also, examine the data for further information that might help Tony in making his decision about the 29-minute delivery guarantee and in improving his pizza delivery service. The Case Questions will assist you in your analysis of the data. Use important details from your analysis to support your recommendations.
Shakey’s has been serving the people for how many years with their quality products using the finest ingredients and dough prepared fresh everyday keeping their tradition of great food and family entertainment. For generations, Shakey’s has been the neighborhood gathering place, where family and friends come together to share great food and good times. Shakey’s wanted to reach families and remind them that Shakey’s is not just all about food but about fun family and pizza. With its vision to be the leading and preferred pizza restaurant, it consistently serves the best tasting, high quality food through fast, efficient and friendly service in a clean, fun and wholesome environment.
Hometown Pizza has been extremely successful in the United States. As you requested I have looked into our own success and I believe it is now time to expand our business. I believe that it is time to expand our business internationally. In order, to expand our business and help us be successful internationally I have been looking into Pizza Hut and their success. To help understand Pizza Hut’s success internationally; I have chosen the following nations to help better understand their success:
The California Pizza Kitchen has 88 restaurants in California alone, which makes it vulnerable to negative economic conditions in California. The California Pizza Kitchen needs to satisfy a number of conditions like credit worthiness, if it continues with its current credit facility along with the likelihood of additional financing. The company does not have direct control over its franchising and licensing partners who contribute to the profits and royalties, and therefore, it affects their profits. Existing economic conditions makes it difficult for the company to pursue its growth plans of expansion. (California pizza kitchen 2009 annual report) 2010).