Determine their best option for making up that revenue
Can someone tell me why option 1 is the better choice for week 2 and and week 3?
WEEK 2 - FIXING THE F00D SITUATION Due to the location where the new ride is being built, visitor access to one of the Paradise Park's two sitdown restaurants will be blocked off for the duration of construction. That's why the management team has asked you to determine their best option for making up that revenue-and making sure visitors have plenty of locations to purchase food while they're at Paradise Park. Even before construction on the new ride began, increasing access to food and beverages for guests was already a priority in the park's three-year plan. Currently, there are five concepts This approach would be While popular in Asia and parts of food stands, including: hot something totally new for of Europe, deluxe vending dogs, soft pretzels, turkey legs, Paradise Park and will include machines are still somewhat sandwich wraps and funnel adding four park-owned food novel to an American audience. cakes. This approach will trucks serving different cuisines Going this route will entail adding double the existing number of (burgers, pizza, tacos and two vending areas to the park, food stands across the park by dumplings). Each truck would each housing eight vending adding two more_of each food cost around $30,000 up front, machines (costing close to stand concept-six of which will have 3-5 options on the menu $10,000 ), that offer a variety concentrate in areas near the and require three employees to of street foods from across construction zone. Each stand run. A handful of tables would the world. One of the vending will cost approximately $5,000 be available near each truck for areas will be located near the to purchase and get up and visitors to use. construction zone and the other running. will be located more centrally within the park between Wild Wild Wood and Fear Factory. Food for the machines would be cooked in the kitchen of the closed-off restaurant by a total of three cooks servicing both locations and refilled as needed by one staff member from each vending area. One other employee would be stationed on-site full time at each location to assist customers. After months of weighing their options, the management team has decided to increase all park employee wages from the currently blended rate of $11.50 per hour to $15 per hour, regardless of their position. It's a bold move, but they think it's the right one for the park, especially considering their difficulty keeping Paradise Park fully staffed, the national discussion surrounding a $15 minimum hourly wage and the park's recent commitment to DEI (Diversity, Equity \& Inclusion). Now, they want to know the best way to pay for it and make it happen. While Paradise Park did raise its This would mean doubling Another way to pay for this prices on food and beverages your annual marketing and increase in wages would be about 10 months ago due to communications budget from to find ways to save money. increased costs resulting from $1M to $2M to include more After examining expenses, it supply chain issues, it's been advertising and public relations seems the areas that have the several years since ticket prices work. The firm you've chosen most potential for cost savings were increased. Currently, 392 recommends a blend of highly are food costs, office space employees work in the park. targeted paid media, including (for corporate headquarters) Knowing that raising ticket ads on streaming platforms and inventory. For food costs, prices can't be done too often,_ and social media driving to the with some negotiating, the management decided the price_park's own updated website._ park can save about 3% by of admission would go up $2. The firm also wants to leverage switching vendors. By moving its own social media properties the current downtown high-rise to amp up efforts. Further, they to a mid-rise closer to the park, plan to position the new \$15 office space could be close hourly wage in a very positive to 20% lower. Lastly, the park light to get the benefit of earned could decide to stop carrying media and news coverage. the lowest-performing 10% of unique inventory items. WEEK 2 - FIXING THE F00D SITUATION Due to the location where the new ride is being built, visitor access to one of the Paradise Park's two sitdown restaurants will be blocked off for the duration of construction. That's why the management team has asked you to determine their best option for making up that revenue-and making sure visitors have plenty of locations to purchase food while they're at Paradise Park. Even before construction on the new ride began, increasing access to food and beverages for guests was already a priority in the park's three-year plan. Currently, there are five concepts This approach would be While popular in Asia and parts of food stands, including: hot something totally new for of Europe, deluxe vending dogs, soft pretzels, turkey legs, Paradise Park and will include machines are still somewhat sandwich wraps and funnel adding four park-owned food novel to an American audience. cakes. This approach will trucks serving different cuisines Going this route will entail adding double the existing number of (burgers, pizza, tacos and two vending areas to the park, food stands across the park by dumplings). Each truck would each housing eight vending adding two more_of each food cost around $30,000 up front, machines (costing close to stand concept-six of which will have 3-5 options on the menu $10,000 ), that offer a variety concentrate in areas near the and require three employees to of street foods from across construction zone. Each stand run. A handful of tables would the world. One of the vending will cost approximately $5,000 be available near each truck for areas will be located near the to purchase and get up and visitors to use. construction zone and the other running. will be located more centrally within the park between Wild Wild Wood and Fear Factory. Food for the machines would be cooked in the kitchen of the closed-off restaurant by a total of three cooks servicing both locations and refilled as needed by one staff member from each vending area. One other employee would be stationed on-site full time at each location to assist customers. After months of weighing their options, the management team has decided to increase all park employee wages from the currently blended rate of $11.50 per hour to $15 per hour, regardless of their position. It's a bold move, but they think it's the right one for the park, especially considering their difficulty keeping Paradise Park fully staffed, the national discussion surrounding a $15 minimum hourly wage and the park's recent commitment to DEI (Diversity, Equity \& Inclusion). Now, they want to know the best way to pay for it and make it happen. While Paradise Park did raise its This would mean doubling Another way to pay for this prices on food and beverages your annual marketing and increase in wages would be about 10 months ago due to communications budget from to find ways to save money. increased costs resulting from $1M to $2M to include more After examining expenses, it supply chain issues, it's been advertising and public relations seems the areas that have the several years since ticket prices work. The firm you've chosen most potential for cost savings were increased. Currently, 392 recommends a blend of highly are food costs, office space employees work in the park. targeted paid media, including (for corporate headquarters) Knowing that raising ticket ads on streaming platforms and inventory. For food costs, prices can't be done too often,_ and social media driving to the with some negotiating, the management decided the price_park's own updated website._ park can save about 3% by of admission would go up $2. The firm also wants to leverage switching vendors. By moving its own social media properties the current downtown high-rise to amp up efforts. Further, they to a mid-rise closer to the park, plan to position the new \$15 office space could be close hourly wage in a very positive to 20% lower. Lastly, the park light to get the benefit of earned could decide to stop carrying media and news coverage. the lowest-performing 10% of unique inventory items
