Extract A: Mexican could be the next global fast food

The UKs market for eating out was valued at 80 billion in 2015 with forecasts for continued growth. Within this market Mexican food is now the most popular, having knocked Chinese food off the top spot. In 2015 Mexican fast food outlets were the fastest growing eateries on the high street, experiencing 71% growth.

Extract B: Chilango

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.

1a. What is meant by sales volume?

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1b. Using the data in extract B calculate the forecast growth in sales revenue at Chilango from 2015 to 2020.

1c. Assess two factors affecting the likely accuracy of Chilangos sales forecasts from 2016 to 2020.