Levendary Cafe Assignment Recommendations and Advice Memo Case Study

Levendary Cafe Assignment Recommendations and Advice Memo - Case Study warning6. The cost to the company is the main problem because the occupancy, labor, intellectual nourishment, supply, and marketing cost altogether detect a punishing cost for the restaurant. The occupancy cost includes maintenance of common area, real estate charge, as well as waste disposal cost. Altogether they comprise 10% of returns. Labor cost signifies 25% to 30% of revenues. solid food costs represent around 32% of revenues. Supply cost signifies around 4% of total returns. marketing fee accounts for 2% - 10% of revenue and overhead represents 5% - 15% 0f revenue. So, altogether the restaurant has to incur heavy costs on all these elements. Therefore, the gross profit of the restaurant is less (Barlett and Han 2).2. Restaurant number The design of the restaurant should be reliable with the designs of the US restaurants. It doesnt matter whether the restaurants are big or small, but it should go well with the location.4. Positioning The present layout of the restaurant should be renovated. Better quality of food should be offered and the service should be fast so that the customer should not have to wait for their order. An resplendent positioning changes the attitude of customers towards the product (Viardot 149 Hooley, Piercy and Nicoulaud 205).5. Competition It determines the suitability of a companys activities which can channel to its presentation (Porter). As the competition is high, so, the company should keep its margin low in order to drag more customer and they should create high awareness about their brand i.e. food quality in order to perform better from their competitors.The decisions which are needed to be taken for the better future of Levendary Caf are Mia Foster can make Chen understand that what are the core values of the restaurant and excessively should build a panel for Louis Chen. She could also follow the approach of KFC or McDonald or other restauran ts.