Question
Prompt: Olivia, fresh off her 2nd year investment banking bonus, has decided to invest into a new restaurant in San Francisco, CA. Years of late-night
Prompt: Olivia, fresh off her 2nd year investment banking bonus, has decided to invest into a new restaurant in San Francisco, CA. Years of late-night dinners coupled with an irrational confidence from the viewing of Netflix's Chef Table has spurred a belief that she can start a restaurant and successfully build the project into a financial success. With an initial $250K already invested into the project (inventory, working capital. tenant improvement. etc.) and a lease on an 8.000 sq. ft. restaurant space (-80 seats). Olivia is hoping to understand which cuisines she should be pursuing. Given her inexperience with the industry, she is hoping for your assistance in helping her through the project. Based on the preliminary research she has conducted, the data shown below were the major factors about the variety of options that you are free to use (but not required to do so).
Market Research Data:
Cuisine Type | Japanese | Italian | Mexican |
Market Growth Rate | 10% | 5% | 4% |
Food Gross Margin | 65% | 70% | 75% |
Average Spend per Customer | $ 22 | $ 18 | $ 16 |
Cost of Customer Acquisition | $ 10 | $ 11 | $ 12 |
With the data provided above and your base intuition / research of the restaurant industry. Please create a simple Excel model and present your findings in a concise PowerPoint deck (4-6 slides). Please feel free to add any additional input you believe required to conduct the most accurate assessment.
To help facilitate the conversation, we are hoping to see the following points in the presentation:
Your final recommendation on which cuisine she should pursue and how you came to the conclusion
Assumptions you have made that drove your final assessment
[Optional] Any other strategic initiatives you believe that Olivia and team could undertake that may drive long-term business success
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