ECON940 KC Analytica (KCA): REPORT ON RESTAURANT OPENING - Case Study

Introduction

KC Analytica (KCA) is a consulting firm which advises on start-up business plans. Among other things, KCA is trying to prepare a report that will advise clients on setting up of restaurants in different locations of Sydney, and understand important differences in economic performance (profitability) across locations and cuisine served. In order to do so, the data for 70 restaurants is collected from CBD, Inner-City and Surburb areas. The data contains two types of cuisines i.e. Asian and European. The data is presented in tables, descriptive forms and graphs. Both Excel and IBM SPSS tool is used for analyzing the data for the years 2017-2018. Following keys are used in the report below:

Profit: Annual figure from 2017-2018 financial year expressed in $000

Location of Restaurants:

1 for CBD 1

2 for Inner City (within 5 kms of CBD)

3 for Suburbs (greater than 6 kms from CBD)

Firm type:

1 for Owner-operator

2 for Partnerships

Cuisine:

1 for Asian food

2 for European food

PART 1

Virtual Presentation of Profit and Loss at Locations

CBD:

CBD	INNERCITY	SUBURBS
150	238	189
96	218	169
171	78	71
-18	-18	-12
72	24	32
63	209	78
18	188	209
237	-28	71
172	157	201
165	212	161
177	153	35
-29	89	48
211	60	210
27	127	-39
14	57	75
64	157	60
110	-36	105
54	19	-26
199	159	43
54	249	170
74	201	162
-38	28	127
	150	-47
		-7
		118

In the CBD location, there are 22 restaurants from which the data was collected on profit and loss. On average the profit at this location was $92.86364 thousands. In Inner City Location, almost 23 restaurants were surveyed for identifying the profitability. On average $115.5 thousands were the profitability of the restaurants operating in this area. In Suburb area, 23 restaurants were surveyed that reported on average profit of $97.22727 (thousands). Based on the outlook above, it can be said that on average Inner-City Location restaurants earned more profits as compared to Suburban areas and CBD areas.