Question
Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager.
Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydney's marketing research has given him some estimates for the different locations as described in the decision table below.
Decision Table
State of NatureAlternativesStrong MarketFair MarketPoor MarketFort Alden75,000
48,500
25,000
Central City68,000
52,000
27,000
Roseville105,000
76,000
30,000
Step2of2:
What would Sydney's anticipated payoff be for themaximax strategy?
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