Business Case Study Analysis-Frank’s All-American BarBeQue: Case Study Short Answer Questions
Question 6: Frank’s All-American BarBeQue is planning to significantly expand its takeout business. Currently, customers come into the restaurant and order from the menu. With the new Darien facility and website, customers will be able to order online or fax an order to the restaurant. Frank and Robert have been arguing over how to structure the takeout portion of their operations. Frank wants to maintain the approach where customers order items from the menu. Robert believes that in today’s world, it would be more convenient for customers to order complete prepackaged meals. Father and son have argued about the nature of these
meals. Frank has suggests a limited number of standard meals that could be prepared during the day and sold in the evening when commuters are returning home. However, this might mean that excess inventory would be built up on unwanted items. Robert wants to offer greater variety. These would include a main course, two side dishes, and a dessert. Because there could be a large number of combinations, most would have to be made after the receipt of an order. The “rush” to make these meals would drive up costs. How would you go about pricing these two types of meals?
Question 7: In the Appendix (Chapter 16 “Appendix: A Sample Business Plan”), you will find the business plan for Frank’s All-American BarBeQue. This plan examined several possible locations for a second restaurant. Frank and Robert considered several factors when evaluating alternative towns as possible locations. Some of these included population size, average income, travel times, and percentage of population. Based on the data, they selected Darien, Connecticut. Do you agree with the decision? Why or why not? Do you think other
factors should have been considered? If yes, what would you recommend?
Question 8: In the Appendix (Chapter 16 “Appendix: A Sample Business Plan”), you will find the income statements and balance sheets for Frank’s All-American BarBeQue for the years 2008 to 2010. Compute some of the key financial ratios for this business and discuss the meanings of any trends.
Question 9: Locate the average values of these values for the restaurant industry and comment on how well or poorly Frank’s All-American BarBeQue appears to be doing with respect to the industry.
Question 10: Frank’s business plan in the Appendix (Chapter 16 “Appendix: A Sample Business Plan”) provides projected income statements and balance sheets for a five-year forecast horizon. Compute the same ratios as in Exercise 8 and comment on your results.
