Question
Chilango is an award winning chain of 10 fast food Mexican restaurants based in London. In 2015 it achieved sales revenue of 6,969,185. Chilango plans
Chilango is an award winning chain of 10 fast food Mexican restaurants based in London. In 2015 it achieved sales revenue of 6,969,185. Chilango plans to open outlets in over 50 locations across the UK in the next 5 years. Forecast sales are shown in table 1.
Table 1: Forecast sales revenue for Chilango
2016 2017 2018 2019 2020
9,676,971 16,169,570 25,473,044 37,628,453 53,037,276
The key factors driving growth will be the opening of new restaurants as well as increasing sales in existing stores. The business will aim to increase sales volume through local marketing, improving food and operations and introducing online ordering.
1) Using the data in extract B calculate the forecast growth in sales revenue at Chilango from 2015 to 2020.
2) Assess two factors affecting the likely accuracy of Chilango's sales forecasts from 2016 to 2020.
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