Answered: 2. What are some of the advantages and…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

See similar textbooks

Related questions

Question

Read case study on pages 100-103, do only the second discussion question on pages 103.

Transcribed Image Text:O Case Study The Perils of Menu Planning thriving 300-unit casual- Until six months ago, the Madison Avenue Grill was a 2.9 percent. dining chain with restaurants stretching from Seattle, Washington, to London, for the chain, has discovered that customer counts are falling off, with sales down England. But lately the news has not been so good. Karen Seaton, financial officer All signs pointed to the menu. Although Madison Avenue Grill has estab lished a strong reputation as a quality restaurant serving upscale burgers, ribs, and fish, the novelty of their offerings has faded. In many markets, fresher, trend- ier concepts have taken hold. If the Grill is to withstand the competition, the menu has to change. And the sooner the better. After consulting with COO and company cofounder Marcus Turner, Karen has gained the opportunity to test a new menu concept. To help develop that concept, she has called a 9:00 A.M. meeting with Marcus and three other com- pany leaders: Jorge Estrada, director of marketing; Anne Hudson, director of operations/service; and Chef Charles Gustafsen. Her instructions to each: Come prepared to suggest one new menu item that can be launched immedi- ately to turn the situation around-and be prepared to offer a rationale for the recommendation. The five met around a large conference table in Marcus Turner's office. Karen made certain there were financial reports at each place. the preliminar- "Since you're all aware of why we're meeting today, I'll ies brief. In a nutshell, our current numbers do not look good," she said. "The bottom line's in jeopardy, people, and if we don't do something fast, it's going to look even worse. Since the problems all seem to point to our menu, that's where I suggest we look for solutions. You're all here because I think we'll be able to come to some creative solutions if we work together. Input from each of you is important, because any change we make to the menu affects a number of key control points-purchasing, receiving, storing, issuing, production, service, and of course, guest satisfaction. We need the one solution that will work best for everyone in the operation." "So what's your new menu idea?" Anne Hudson asked, looking up from her notepad. margin, and brings people through the doors," Karen said. "A profitable conve "I think we need something that takes relatively little prep time, offers a high nience food, if you will." At the words convenience food, Chef Gustafsen's jaw tightened. "And your recommendation?" "Prime rib." out?" "Done to death," Jorge Estrada sighed. "And haven't you heard that beef is inconvenient cut. It's too easy to overcook. Of course, with the proper slow-cooking "If you want convenience," the chef interjected, "you couldn't pick a more equipment, it can be managed, but-" The Menu: The Foundation for Control 101 Karen held up her hands. "Okay, okay. Given the current financials, I'm cer- tainly not going to recommend new equipment in every unit. I know I like prime COO Marcus Turner leaned forward, rubbing his hands. "You know what I rib and I thought it would be a big hit." like? I think-" "If you want to bring people through the door, you have to give them what they want," Jorge interrupted. "All of my market research is pointing to one thing: pita wraps. They're very hot right now. They capture people's fondness for lighter, healthier food; you can make them any way you want-Tex-Mex, Greek, stir-fry, whatever; and they are guaranteed to pull people into our operations. If you want even more reasons, they're fast and easy to prepare, so we can turn more tables at lunch and dinner." "Wraps have a very low margin, Jorge," Karen said, frowning. "But we'll make it up through increased traffic." "I'm not so sure," Anne said. "I can tell you right now that my servers are not going to be happy pushing $4 or $5 wraps all the time. To bring their tips up, they're going to be recommending higher-priced items. And frankly, wraps can be messy. That may mean my bussers have to spend a little more time cleaning up at each table, and that may cut into your fast-turning tables theory." "Not to mention the additional prep time," Charles said. "Suddenly we're doing a lot of cutting and chopping we didn't need to do before." He paused before adding, "And for what? So we can jump on the latest sandwich bandwagon. Where's the creativity in that?" "Speaking of creativity-" Marcus began. Karen cleared her throat and turned to Anne Hudson. "What's your menu solution?" Anne flipped through her notepad, searching for her notes. "To be honest, I'm not all that particular about what we decide. I just need something my people can sell easily, that generates a good-sized check, and that guests will enjoy. I, uh-" at last she found her notes-"I'm recommending some kind of dessert spe- cial, offered either nightly or weekly. I think people will come out to see what the specials are that addresses your traffic concerns, Jorge-and $4 and $5 desserts represent a good profit for the company while boosting the check average nicely for our servers," she said, nodding at Karen. "We could even make our kitchen staff happy by purchasing brand-name desserts that require minimal prepping and can be easily stored, garnished, and served." Chef Charles, who had been looking increasingly hopeful as Anne described her idea, suddenly reddened. "Why does the Grill even pay me a salary! Here I am, a classically trained chef who could help turn things around for us, and you recommend that we throw something on a plate that our guests could just as easily pick up at the to how to prepare food? Oh, I forgot. We get to decide which side of the cheesecake to place our little sprig of mint on." "Chef-" "Why not let me do what I am trained to do? Give me the freedom to cre- ate true culinary specialties, not serve up some store-bought concoctions. I can create one for every day of the week, signature dishes of the Madison Avenue