CASE STUDY: BESTTI’S RESTAURANTSUBJECT: Operations ManagementQUESTIONS: Evaluate Rosa’s past and present marketing strategy. What should she do now? Should she seriously consider joining some franchise chain? By April 2010, the situation had begun to improve, and by June her weekly gross was upto between $3,100 and $3,300. By March 2011, the weekly gross had risen to about$4,200. Rosa increased the working hours of her staff six to seven hours a week andadded another cook to handle the increasing number of customers. Rosa was moreoptimistic for the future because she was finally doing a little better than breaking even.Her full-time involvement seemed to be paying off. She had not put any new money intothe business since summer 2010 and expected business to continue to rise. She had notyet taken any salary for herself, even though she had built up a small surplus of about$9,000, instead, she planned to put in a bigger air-conditioning system at a cost of $5,000and was also planning to use that salary she might have taken for herself to hire two newwaitresses to handle the growing volume of business. And she saw that if businessincreased much more she would have to add another cook.1. Evaluate Rosa's past and present marketing strategy.2. What should she do now?3. Should she seriously consider joining some franchise chain? CASE NUMBER 8:BESTTI'S RESTAURANTpossible locations before finally deciding on the present one. Rosa explained: "I lookedeverywhere, but here 1 particularly noticed the heavy traffic when į first long at it. This isRosa Bestti, the oyper and manager of Bestti's Restaurant, is reviewing the show growththe crossroads for three major interstate highways. So obviously the potential is here.of her restaurant. She's also thinking about the future and wondering if she should changeher strategy. In particular, she is wondering if she should join in fast-food or familyHaving decided on the location, Rosa signed a 10-year lease with option to renew for 10restaurant franchise chain. Several are located near her, but there are many franchisorsmore years, and then eagerly attacked the problem of outfitting the almost empty storewithout local restaurant. After doing some research on the internet, she has learned thatspace in the newly constructed building. She tiled the floor, put in walls of suriwood.with help from the franchisor, some of these places gross $500,000 to 1 million a year. Ofinstalled plumbing and electrical fixtures and extra washroom, and purchased thecourse, she would have to follow someone else's strategy and thereby lose hernecessary restaurant equipment. All this cost $120,000-which came from her own cashindependence, which she doesn't like to think about. But those sales figures do soundsavings. She then spent an additional $1,500 for glassware, S2,000 for an initial foodgood, and she also heard that the return to the owner-manager (including salary) can bestock, and $2,125 to advertise the opening of Besitti's Restaurant In the local newspaper.over $150,000 per year. She has also considered putting a web page for Besitti'sThe paper serves the whole metro area, so the $2,125 bought not three guatter-page ads.Restaurant on the internet but is not sure how that will help.These expenditures also came from her personal savings. Next she hired five waitressesat $275 a week and one chef $550 a week. Then, with a $24,000 cash reverse for theBestis Restaurant is a fairly large restaurant-about 3,000 square feet-located in thebusiness, she was ready to open. Reflecting her sound business sense, Rosa knew shecenter of a small shopping center completed early in 2009. Besti's sell mainly full-coursewould need a substantial cash reverse to fall back on until the business got on its feet."home-cooked" Italian-style dinners (no bar) at moderate prices. In addition to BesttisShe expected this to take about one year. She had no expectations of getting richRestaurant, other business in the shopping center include a supermarket, a hair salon, aovernight. (Her husband, a high school teacher, was willing to support the family until theliquor store, a video rental store, and a vacant space that used to be a hardware store.restaurant caught on.)The hardware store failed when a Home Depot located nearby. Rosa has learned that apizzeria is considering locating there soon. She wonders how that competition will affectThe restaurant opened in April and by August had a weekly gross revenue of only $2,400.her. Ample parking space is available at the shopping center, which located in aRosa was a little discouraged with this, but she was still able to meet all her operationresidential section of a growing suburb to the east, along a heavily travelled major trafficexpenses without investing any new money in the business. She also got a few goodroute.customer reviews on Yelp. By September business was still slow, and Rosa had to investan additional $3,000 in the business just to survive.Rosa graduated from a local high school and a nearby university and has lived in thistown with her husband and two children for many years. She has been self-employed inBusiness had not improved in November, and Rosa stepped up her advertising-hopingthe restaurant business since her graduation from college in 1994. Her most recentthis would help. In December, she spent $1,200 of the cash reserve for radio advertising-venture before opening Bestüs was a large restaurant that she operated successfully10 late-evening spots on a news program at station that aims at middle-income America.with her brother from 2000 to 2006. In 2006, Rosa sold out her share because of illness.Rosa also spent $1,600 more during the next several weeks for some metro newspaperads.Following her recovery, she was anxious for her something to do and opened the presentrestaurant in April 2009. Rosa feels her plans for the business and her opening were wellthought out. When she was ready to start her new restaurant, she looked at several

Question

CASE STUDY: BESTTI’S RESTAURANTSUBJECT: Operations ManagementQUESTIONS: Evaluate Rosa’s past and present marketing strategy.  What should she do now?  Should she seriously consider joining some franchise chain? By April 2010, the situation had begun to improve, and by June her weekly gross was upto between $3,100 and $3,300. By March 2011, the weekly gross had risen to about$4,200. Rosa increased the working hours of her staff six to seven hours a week andadded another cook to handle the increasing number of customers. Rosa was moreoptimistic for the future because she was finally doing a little better than breaking even.Her full-time involvement seemed to be paying off. She had not put any new money intothe business since summer 2010 and expected business to continue to rise. She had notyet taken any salary for herself, even though she had built up a small surplus of about$9,000, instead, she planned to put in a bigger air-conditioning system at a cost of $5,000and was also planning to use that salary she might have taken for herself to hire two newwaitresses to handle the growing volume of business. And she saw that if businessincreased much more she would have to add another cook.1. Evaluate Rosa's past and present marketing strategy.2. What should she do now?3. Should she seriously consider joining some franchise chain? CASE NUMBER 8:BESTTI'S RESTAURANTpossible locations before finally deciding on the present one. Rosa explained: &#34;I lookedeverywhere, but here 1 particularly noticed the heavy traffic when į first long at it. This isRosa Bestti, the oyper and manager of Bestti's Restaurant, is reviewing the show growththe crossroads for three major interstate highways. So obviously the potential is here.of her restaurant. She's also thinking about the future and wondering if she should changeher strategy. In particular, she is wondering if she should join in fast-food or familyHaving decided on the location, Rosa signed a 10-year lease with option to renew for 10restaurant franchise chain. Several are located near her, but there are many franchisorsmore years, and then eagerly attacked the problem of outfitting the almost empty storewithout local restaurant. After doing some research on the internet, she has learned thatspace in the newly constructed building. She tiled the floor, put in walls of suriwood.with help from the franchisor, some of these places gross $500,000 to 1 million a year. Ofinstalled plumbing and electrical fixtures and extra washroom, and purchased thecourse, she would have to follow someone else's strategy and thereby lose hernecessary restaurant equipment. All this cost $120,000-which came from her own cashindependence, which she doesn't like to think about. But those sales figures do soundsavings. She then spent an additional $1,500 for glassware, S2,000 for an initial foodgood, and she also heard that the return to the owner-manager (including salary) can bestock, and $2,125 to advertise the opening of Besitti's Restaurant In the local newspaper.over $150,000 per year. She has also considered putting a web page for Besitti'sThe paper serves the whole metro area, so the $2,125 bought not three guatter-page ads.Restaurant on the internet but is not sure how that will help.These expenditures also came from her personal savings. Next she hired five waitressesat $275 a week and one chef $550 a week. Then, with a $24,000 cash reverse for theBestis Restaurant is a fairly large restaurant-about 3,000 square feet-located in thebusiness, she was ready to open. Reflecting her sound business sense, Rosa knew shecenter of a small shopping center completed early in 2009. Besti's sell mainly full-coursewould need a substantial cash reverse to fall back on until the business got on its feet.&#34;home-cooked&#34; Italian-style dinners (no bar) at moderate prices. In addition to BesttisShe expected this to take about one year. She had no expectations of getting richRestaurant, other business in the shopping center include a supermarket, a hair salon, aovernight. (Her husband, a high school teacher, was willing to support the family until theliquor store, a video rental store, and a vacant space that used to be a hardware store.restaurant caught on.)The hardware store failed when a Home Depot located nearby. Rosa has learned that apizzeria is considering locating there soon. She wonders how that competition will affectThe restaurant opened in April and by August had a weekly gross revenue of only $2,400.her. Ample parking space is available at the shopping center, which located in aRosa was a little discouraged with this, but she was still able to meet all her operationresidential section of a growing suburb to the east, along a heavily travelled major trafficexpenses without investing any new money in the business. She also got a few goodroute.customer reviews on Yelp. By September business was still slow, and Rosa had to investan additional $3,000 in the business just to survive.Rosa graduated from a local high school and a nearby university and has lived in thistown with her husband and two children for many years. She has been self-employed inBusiness had not improved in November, and Rosa stepped up her advertising-hopingthe restaurant business since her graduation from college in 1994. Her most recentthis would help. In December, she spent $1,200 of the cash reserve for radio advertising-venture before opening Bestüs was a large restaurant that she operated successfully10 late-evening spots on a news program at station that aims at middle-income America.with her brother from 2000 to 2006. In 2006, Rosa sold out her share because of illness.Rosa also spent $1,600 more during the next several weeks for some metro newspaperads.Following her recovery, she was anxious for her something to do and opened the presentrestaurant in April 2009. Rosa feels her plans for the business and her opening were wellthought out. When she was ready to start her new restaurant, she looked at several

Accepted Answer

The studies related to the marketing strategy of the besties restaurant. It is study of how the…