MGMT-6142 INTEGRATED BUSINESS

CONSULTANCY PROJECT
PROJECT: IMPROVING DAILY SALES

CLIENT: OUTBACK SHACK

TEAM AMIGOS

TEAM MEMBERS
BESTIN ANTONY

HARMAN KAUR

ANCHAL GOYAL

ARSHWEER
1|Page

Contents
EXECUTIVE SUMMARY...........................................................................................................................2
INTRODUCTION OF CONSULTING TEAM................................................................................................3
COMPANY PROFILE................................................................................................................................4
INTERVIEW QUESTIONNAIRE.................................................................................................................5
REVIEW REPORT ON CURRENT FINANCIAL TERM..................................................................................6
PRIMARY AND SECONDARY ISSUES OF OBS...........................................................................................7
INTERNAL ANALYSIS..............................................................................................................................9
MISSING INFORMATION AND ASSUMPTIONS.....................................................................................12
EXTERNAL ANALYSIS............................................................................................................................13
DECISION CRITERIA..............................................................................................................................16
ASSESSING ALTERNATIVE SOLUTIONS.................................................................................................18
SELECTION OF PREFERRED ALTERNATIVE............................................................................................24
IMPLEMENTATION PLAN FOR EACH ALTERNATIVE.............................................................................27
CONCLUSION.......................................................................................................................................29
BIBLIOGRAPHY.....................................................................................................................................30
BACK PAGE..........................................................................................................................................31
2|Page

EXECUTIVE SUMMARY
The purpose of this project was to examine and do the analysis of the primary and
secondary issues of the outback shack and to provide an alternative solution to solve the base
problem. Method of analysis was started with doing a background study on the company financial
status and organizational structure. Also, with the Interview with the Outback shack manager
Madison we have conducted an interview on the critical questions to understand the problems the
company currently facing.

After obtaining the data from the interview and background study we have segregated the
issues to primary and secondary issues. The important thing we have focused next is the internal
analysis and external analysis of the company with regards to its growth options and competitions.
For the Internal analysis we have used the SWOT analysis and for external analysis we have used
PESTEL analysis.

From the deliberate study we have conducted we have figured that the revenue loss due the
current virus outbreak is the important thing to resolve in an urgent basis to get the OBS growth in
upward trend. Then the next step we have done is to study the possible alternative solutions to get
the daily sales from $800 to $1500 with the existing challenges and expenses. For conducting a
detailed study on the best possible alternative solutions, we have used the weighted average
decision criteria matrix which gives each alternative a better evaluation on the base of weightage
selected for each criterion.

We have concluded for increasing daily sales the best alternative solutions are as listed below

 Introduce vending machines near wellness center and near campus entrance.
 Giving 20 percentage off on all purchases above $20 by coupons.

After finding the best possible alternative solutions we have also created the implementation plan
for the alternative solutions to be executed in the three months’ time and to make the target daily
sales value.
3|Page

INTRODUCTION OF CONSULTING TEAM

For the business consultancy project, we have selected Outback shack Bar
and Grill as our client company and the person of contact for this project with the client company is
the restaurant manager Madison. Our team consists of four members and all of the team members are
from the same batch of business management, London South campus. and the names listed below.
The name chosen for our team is Amigos.

Group Members: Bestin Antony

Aanchal Goyal

Arshveer Kaur

Harmanpreet Kaur
4|Page

COMPANY PROFILE
The Fanshawe Student Union is a representative student entity organized to get the students
and staff well entertained and to provide help all the needs of them.

The Student Centre of the FSU is located near Gym block and between campus residences.
FSU has two main divisions for food and catering services. One is Oasis and other one is Out back
shack. The Oasis, an exclusive 300-seat dining area with five internal divisions in it to provide
different type of food menu.

The most popular and most program run destination is The Outback Shack, which has a
seating capacity of 180 seats. On most of the weekdays it is operating from 11 AM to 7 PM except for
event days which will make the closure time till 12AM. The menu on those special days will be kept
minimal to reduce the rush in the kitchen and to provide best services. The OBS is an Icon for a full-
service bar with affordable rates with unique style and best services.

ORGANIZATION STRUCTURE

Fanshawe Student
Union

Oasis Outback Shack

Total Employees : 25
Manager : Madison
Booster Juice

Seven Seas

Poblanos

Stone Pizza Parlour

5|Page

INTERVIEW QUESTIONNAIRE

We first asked her how it was working and managing the OBS to which she replied that she loved
being a part of the team and had a really wonderful team under her.

Following with

1. How long has she been a part of – a long time that it feels like home now

Then we started to get into main discussion

2. How was it to reopen after COVID-19 19?

It was a very difficult task and required a lot of new things to be brought into
consideration (like sanitizing and all)
3. Have the sales been affected due to this?
Yes, huge time the sales have almost been half of what it was earlier because of the
college not opening for everyone and even people not being sure about getting back. She
added that she even had to bear some costs while it was locked down.
4. What are some of the opportunities that you are looking forward for?
having the previous number of customers back in the restaurant and hitting the same sales
target as before.
5. How do you cop up with all the demand?
This is one of the major challenges that they face in the restaurant as they have to keep
with the food and to Make enough food and be ready with all the demands is the main
thing that they have to work on every day.
6. She said they had to make enough to establish all the costs that they had to face like for
the alcohol, labor, rent and other expenditure (lights etc.)
7. She added to the discussion that we must work as per customer satisfaction and make sure
that the customers are happy, and they are incurring enough sales by keeping them
satisfied.
8. She told that before COVID-19, they would have so many events in OBS that would help
them boost their sales but now they cannot do anything of that sort for some time.
9. Then WE asked about any more challenges – time management is also something and
keep up with daily operations and getting all the deposits and office work done that they
have to do and have to keep up with things like doing the paper work and having
everything ready before the boss wants to have a look at anything.
6|Page

REVIEW REPORT ON CURRENT FINANCIAL TERM

After reviewing the financial reports of this term, we came to conclude that, this year due to
covid-19 the place was shut for months before it came back to business. The place was shut down for
months due to covid-19 so there were no sales not source of income, but the advantage was since the
building rent has been waived off as it is a student union entity it has large retained earnings. Now the
place is back in business, but still they will not be able to do match the sales level before covid-19.
The main reason for behind low sales is that due to covid-19 most of the courses are online so the
number of students going to college are low as a result, sales is very unpredictable. Now, the firm is
only able to bear it’s fixed and operating expenses out of sales. There are very less profits this year.

KEY ISSUES AND SECONDARY ISSUES

Some of the issues that we observed during our conversation with Madison were

 Quality management
 Quantity management
 Managing employees and there working schedule as most of them are students at Fanshawe
and they all have different availabilities.
 Getting demand that could fulfill the cost.
7|Page

PRIMARY AND SECONDARY ISSUES OF OBS

PRIMARY ISSUE OF OBS

According to our team’s analysis, OBS is facing many issues such as very few customer
walk-ins and thus less revenue. Before pandemic we will consider our review in a scale of 100. After
the pandemic it has dropped to approximately 50 percentage now and OBS is desperately in a need to
improve business to a higher level. By this project we are targeting to creating a business plan of
improving business to 75percentage of pre COVID-19 stage. The reasons for dropping the revenue are
listed below;

 College Closure after pandemic: As OBS operates inside the campus, so their customers are
mostly students and college faculty. But college was closed from March because of covid19
pandemic which resulted in closure of OBS as well.
 Wastage of Inventory during lockdown: As it is clear there was no demand in last six months
so if OBS forced to throw away the inventory and that caused a loss of big amount.
 Customer satisfaction: Some of the customers are dissatisfied with their services and some
with their quality of food. This is majorly because most of the kitchen staffs are inexperienced
students. By getting customer satisfaction could be great step to boost company’s profits.
 Company reputation: Evaluating the techniques followed by competitors is important when
you are in critical situation like continuous losses. For example, at time of pandemic,
McDonald adapt various new policies to establish company reputation. They make donations
of 250000 pounds of food to food banks. So unlike McDonald, OBS did not focus on building
trust in customers. This could be another reason that even after six months of pandemic
company still facing losses.

SECONDARY ISSUES

Some of the secondary issues we can focus on to solve the primary issues are listed below:

 Better delivery Services

 Market penetration: this another type of strategy in which company decides to increase their
sale in existing market by using various techniques. The one way to grow by existing
products is expand market share and second is by lowering their price. For example. To
attract more customers or students they can lower their price than their competitors
 Coupons
 Quality management: this is act of overseeing company’s different activates to make sure that
products and services they are providing reaches at consistent level. Is organization could
maintain desired level of quality in organization.
8|Page

 Advertisement: OBS does not focus on advertisement and publicity. They only operate in
college boundaries, moreover their online advertisements are not much effective. This could
be issue for not getting enough demand for restaurant. Nowadays social media can be used as
biggest platform. In case of OBS, most of their customers are students and of course they are
well connected with social media platforms line Facebook, Instagram. They can encourage
their customers to give reviews. It could be great option as OBS can knew about their
limitations and act on them.
 Expansion: OBS has only one restaurant in main campus of Fanshawe College as there is
three campus of Fanshawe College only in London. Expanding business could be challenge if
company do not have much demand in market.

From the analysis we found that the primary and secondary issues the OBS facing. And also,
it a fact that we need to have a thorough review on the factors affecting these issues and need to create
a plan to solve the problem. From finding the main issue to come up with solution, there must be a
process which include key issue > data collection > case analysis > solution planning implementation
> evaluation of effect > continuously improvement.

For this we need to evaluate analysis on internal and external Analysis.

 Internal analysis: internal examination includes examination of company’s internal

component like resources, assets, areas for growth etc. for this purpose company can follow
various techniques like, PESTAL analysis, gap analysis, SWOT analysis and core
competencies analysis
 External analysis: it means examining the company environment on basis of economic,
global, political, social, and demographic analysis. The main purpose of external analysis is to
measure opportunities and threats for company.

After our research and interview with OBS we found data on their sales from last six months.
Before pandemic OBS was serving 250 number of customers on daily basis and there average
daily sale was $3500. After lockdown in March their number of customers was decreased and
reach to only 50 customer per day. OBS lost their 200 customers on daily basis. By all means
their sales was also reduce to $800/day. After analysis we found that OBS lost approximately
77% of their sale during lockdown.
At the end, after discussion about primary issue with Madison, she agreed to this topic. Our
team convinced her about out project and she is happy to help us about project research.
9|Page

INTERNAL ANALYSIS

Internal Analysis is a very good step in understanding the company’s status in the sense of
competitive and financial strengths. Particularly for the OBS conducting an in-depth study is very
essential as the company is facing a downtrend and the business is constantly in the negative side.
Here in this report we have done an Internal analysis using the SWAT analysis.

STRENGTH

1) Captive market: Since OBS is the only liquor licensed restaurant in the Fanshawe campus it is
the major attraction for the students and staffs
2) Events: Majority of the events in the Fanshawe college is being conducted in the OBS
because of its great ambiance inside it. And the sale on those event days will be contributing
to around 30 percentage of OBS revenue.
3) Complementary meals: From the time of beginning OBS is trying to attract more and more
customers in and thus they always have days where significant discounts or even
complementary meals are provided. All because of this continuous effort OBS is lot famous
both inside and outside campus.
4) Support from college management: The OBS is managed by Fanshawe student union as a
result and as a result there is a huge support from the college. This include rented space free
of cost and staff management with other restaurants
5) Whole lot of dishes and everyday experimental dishes and this even includes giving an option
to customer to customize the standard dish.
10 | P a g e

WEAKNESSES OF OBS

1. Low revenue: the major weakness of OBS is that company is facing losses due to
decrease in the sales that leads in reducing the sale growth and also in long term as well.
Company could not cover variable cost in last six months.
2. Work schedule: another weakness is that the employees are facing problems in their
schedules due to the management’s lack of cooperation because they always lacking in
assigning timetable. However, it leads to unavailability of the staff. Furthermore, most of
employees are students, even some are only part time. So, assigning jobs could be
difficult task.
3. High turnover rate: in lockdown period there was high turnover rate of employees
because of high stress of covid19. Another reason for high turnover rate is CERB policy
given by government.
4. Inventory and supply chain: Other weaknesses may include not getting constant
supplies that sometimes leads to menu items not being available in the menu. Because of
lockdown there supply chain was affected as it’s a restaurant so most of the inventory
includes perishable goods. So, they cannot store it for much long time.
5. Less productivity and low morale in employees: In pandemic period OBS found that
their employee’s productivity level was decreased, and emotional challenges employees
are confronting have increased manifold. There could be many reasons for it such as
anxiety and worry about getting infected. Secondly According to the new regulations
after pandemic employees have to follow cleaner and disinfecting procedures like clean
the counter after attending every customer could affect their productivity adversely.
6. Outdated application: Out back shake is operated by Fanshawe student union and they
are using FSU’s platform for online services. This website is used order dinner, online
postings. There must be need of separate website or application only for restaurant.
7. Lack of customer faith: out back shake did not focus on interaction with customer
during lockdown. OBS was closed and they did nothing to build trust and faith in their
customers. To stay in touch with customers they should make donations, improvement in
online services etc.
8. Depending on the outdated point of sale system or using paper to keep track of ordering
and stocking is a weakness, because there are better ways of calculating stockroom
according to the budget.
11 | P a g e

OPPORTUNITIES

1) Giving a great deal to the people outside the campus i.e. locals, Alumni

2) Introducing drive through pick up option will be a great thing to do as everyone wanted their
food in a matter of minutes. This can be easily achieved just by renting more space outside the
restaurant.

3) Introducing Online ordering and pickup from the restaurant. By doing this students or staff
can order food estimating time they have before their next scheduled activities.

4) Doing more promotional activities will be a great thing to attract lot of customers. These
promotional activities can do by combination of online and offline methods.

THREATS

1) Competition: Since in Fanshawe college surrounding there is already well-established

restaurants which even do the door delivery inside campus. So, considering these factors also
in mind even minor drop in reputation of OBS will cause in drop in business too.
2) Shortage of labor: To face the existing challenges, the OBS has to keep the door of the
restaurant of the customer for more time in order to attract maximum customers. But the
problem is making schedule for staffs according to the school times will be difficult as the
staffs are studying at the same time which worsen the problem.
12 | P a g e

MISSING INFORMATION AND ASSUMPTIONS

In our project report, we make some sort of assumptions for reaching at the conclusion due to absence
of actual data, that is given below.

NUMBER DAILY CUSTOMER WALK IN

In order to predict the number of daily customers who are visiting the restaurant, our team had to
assume the scale of 100 as we did not have actual number of customers who are visiting on a daily
basis.

THE SALE GENERATED PER ORDER

in our report, we assume that one customer will spend at least $20.so, based on this assumption
customers could spend more than or less than $20.

EXPENSES THAT WOULD BE GENERATED PER INCREASE IN CUSTOMER WALKIN

In order to increase the sales, we assume that the cost of production we assumed as 30 percentage of
total sales. But realistically it is not possible to calculate the actual data for cost of production.

Approval from management for installation of the vending machine-for installation of vending
machine our team did not sure about permission process, so we just assume that administration
department could be responsible for this authority

Weightage for decision criteria: in the process of decision matrix Our team made a decision to figure a
weighted decision matrix which included: impact on daily sales, ease of implementation, time
consumption and cost of implementation. In all analysis, our team gave highest weightage to daily
sales and least weightage to time consumption which is all based on assumptions not on realistic data.
13 | P a g e

EXTERNAL ANALYSIS
PESTEL ANALYSIS

POLITICAL FACTORS:

The political variables that can influence the company's viability or chances of survival are
very complex. Our team dig up political factors that can impact restaurants and small businesses like
OBS in various manners:

1. Canadian federation of independent business (CFIB) is a non-profit business organization

which is working for small and independent business since 1969 tax protest. This
organization represent concerns of 110,000 Canadian mid-size enterprises.
2. The laws imposed by the government, specifically with regard to company, such as contract
law, as they prescribe what is and is not permissible to do.
3. In this pandemic period Canadian government implies various new polices for small
businesses like CEBA, Canada emergency wage subsidy, Canada emergency rent subsidy for
rent and mortgage support, regional relief and recovery funds and Canada united small
business relief funds. These polices can be helpful to business like OBS as well as
government to boost their economy.
4. In the lockdown period, government assure income support to individuals either employed or
self-employed directly affected by COVID19 and not entitled to EI benefits can get Canada
recovery benefit.
5. There are various changes in rules for working place to stay safe in this pandemic era. For
example, wear non-medical masks and face covering on workplace, safe distancing.
6. The employment standard act provided job protection because of medical investigation or
treatment for COVID19 and employers were bound to provide facilities like:
 Infectious disease emergency leave
 Declared emergency leave
 Temporary layoff

ECONOMIC FACTORS:

1. Most of the employees working for OBS are students whether full time or part time. The
majority of employees could agree to work on minimum wage rate.
2. Customers are more conscious about health issues. So, sale for fast food industries and
restaurants could decreased.
3. A high degree of unemployment in the country would indicate a larger availability of workers
than demand, which would mean that people would be able to work for lower wages.
14 | P a g e

Food manufacturing has a fundamental role in Canada’s economy. It is obvious that during this
pandemic period there is fluctuations and economical changes in all type of business in all over world.
Here we are discussing the economic changes in food industry due to COVID19.

1. Price was highly fluctuating because of demand shocks and issues with supply chain.
Specially, prices of meat, fish, dairy and eggs were affected by pandemic.
2. Naval coronavirus also affected employment rate, as employees are in fear to work and funds
provided by government who are directly affected by COVID19.
3. Consumer disposable income has also decreased in this pandemic period. So people will
avoid to hang out with family and friends. This will affect adversely restaurants like OBS.

SOCIAL FACTORS:

1. Most of the customers of OBS are students from 18 to 25 age group. This the age group who
consume more fast food than any other age group.
2. Number of international students in Fanshawe College increasing every year. Therefore, there
would be diversity in food preferences if customer belongs from different cultures, beliefs and
religious values. This is biggest social challenge for OBS.
3. In situation of covid19, people would not prefer to sit and eat in restaurant. There is more
online orders, drive through and takeaways in restaurants. OBS should focus on these
alternative methods of sale. Moreover, some people are avoiding food from restaurants as
being conscious and paranoid in covid19 situation.
4. As OBS operate from college, therefore afternoon time would be busiest time for restaurant
than evening.

TECHNOLOGICAL FACTORS:

Technological factors relate to existence, availability and development of technology. In factor of

technology, OBS needs various changes and advancements.

1. OBS is using offline system for managing employee work schedule. This is generating chaos
for restaurant as well as employees. OBS needs online technology or a software.
2. There could services that can OBs provide to their customers like free internet service, loyalty
programs. Furthermore, OBS can ask to their customer to review restaurant services online. It
could help for advertisement and marketing for restaurant.
15 | P a g e

3. OBS host events in Fanshawe College, so restaurant should use social media platform for
these events. They can make announcements from their website for upcoming events.

LEGAL:

As out back shack is organized by the Fanshawe student union by following the rules and regulations
that are required for starting a bar and restaurant. When it comes to legal prospects of OBS, this
business enterprise also contributes in our society by following Corporate Social Responsibility and
Sustainability regulations.

ENVIRONMENT:

surroundings of a business can affect your business in many ways such as similar types of business in
your business ‘s vicinity, a lot of competition that leads to decrease in the prices for maintaining the
constant level of sales or we can say that for survival in the economy. If we are looking about OBS
then the main competitors are Harvey’s, villa cornelia restaurant and tuscanos pizzeria and bistro.

For the sake of protecting environment OBS is using ecofriendly products that could leads to less
damage to the environment such as disposable appliances and glasses.
16 | P a g e

DECISION CRITERIA

Here in this report to finalize our decision criteria we are using the SMART method. SMART stands
for specific, measurable, achievable, Relevant, Time-bound. Since we have made a clear-cut target
(Increasing daily sales) we have achieved setting a measurable specific goal. The next thing we are
identifying alternative/possible solutions for achieving that target. Then by weighing different
decision criteria we will be able to select the best solution to increase the daily sales.

CRITERIA’S TAKEN INTO ACCOUNT

1) Cost of implementation
2) Impact on daily sales
3) Ease of implementation
4) Time consumption

WEIGHTS FOR CRITERIAS CHOOSEN

Impact on Daily sales – (Weight -4) Since this is priority, we have chosen the highest weight value.

Ease of implementation – (Weight -2) Since the OBS is not having enough manpower to support these
activities we must give certain weight to this factor as well.

Time consumption – (Weight -1) Since the OBS is under the risk of financial outrun we must select
the solution that will take the minimal time to implement option.

Cost of implementation – (Weight -3) the cost of implementation is an initial investment, but it is
going to play an Important role in the growth of OBS.

THE ALTERNATIVE SOLUTIONS

1) Initiating contracts with Door dash and skip the dishes

2) Installing vending machine near Campus entrance and wellness centers.

3) 20 percentage of discount on meal purchase by issuing Coupons

4) Advertisement through social media and using flyers.

17 | P a g e

 INITIATING CONTRACTS WITH DOOR DASH AND SKIP THE DISHES.

Online food delivery is a source through which people can reach out the restaurant’s that they
may not be able to visit personally. Having OBS on door dash and skip the dishes will spread
more awareness about this restaurant and would help in growth. The sale of OBS would not
just be limited for Fanshawe students.

 INSTALLING 2 VENDING MACHINES NEAR CAMPUS ENTRANCE AND

WELLNESS CENTRES.

Vending machines play a part of providing food that students can have on the go. Food
available so easily would lead to growth within the campus.

 20 PERCENTAGE OF DISCOUNT ON MEAL PURCHASE BY ISSIUNG

COUPONS.

By giving discounts people will get more involved and this would help in encouraging the
business. Giving discounts always attract more customers and this practice can take place as
often as OBS wants.

 ADVERTISEMENT THROUGH SOCIAL MEDIA AND USING FLYERS.

In today’s generation social media is the best platform to promote anything. Spreading
awareness through social media and by having some food bloggers post about OBS it would
give a huge boost in sales.
18 | P a g e

ASSESSING ALTERNATIVE SOLUTIONS

THE ALTERNATIVE SOLUTIONS

1) Initiating contracts with Door dash and skip the dishes

2) Installing 2 vending machines near Campus entrance and wellness centers.
3) 20 percentage discounts on meal purchase by issuing Coupons
4) Advertisement through social media and using flyers.

ALTERNATIVE 1: INITIATING CONTRACTS WITH DOOR DASH AND SKIP THE

DISHES

Considering we are planning to increase the daily sales in the span of three months (January- March)

From the discussion with Skip the dishes customer service representative he said the following

 Delivery will make the sales increase to 30-50 percentage

 15 percentage commission for each sale through the app
 Considering fact that OBS is having an average 45 customers per day taking 30 percentage
increase in sales will be create the total customer sales to around 60 customers. (15 orders
extra). For three months period time.

EXPECTED OUTCOME FROM SALES OF THIS OPTION

Per day sales just by online orders

Considering $20 as sales occurred by a customer

15x20 = $300

For three months period = 300x90 = $27000

COST INVOLVED

Cost of production= $8100(30% of $27000

Other costs include

Cost of tablet= $500

Revenue loss due to the commission of Door Dash = $4050 (15% of $27000)

Total cost = $4550

19 | P a g e

MEETING CRITICAL ISSUE

It partially meets the critical issue as it adds up $300 to the daily sales.

CHANCES OF THE OPTION CAN GO WRONG

 Since the OBS is operating inside the campus there are certain restrictions to the non-campus/
outsiders inside the campus because of COVID-19.
 There is a lot of skill and effort required to manage menu online. As the order has confirmed
if the cook found that any ingredient missing it will hurt the reputation as the menu either the
recipe has to edited or cancel the order.
20 | P a g e

ALTERNATIVE 2: INSTALLING 2 VENDING MACHINES NEAR CAMPUS ENTRANCE

AND WELLNESS CENTRES

By installing vending machines that would have food like sandwiches and burgers that are sold in
OBS with the price average $15.

EXPECTED OUTCOME FROM SALES OF THIS OPTION

Assuming to sell at least 30 items each day.

Sales would be 15*30 = 450$ for one day.

Sales of three months would be = 90x $450 = $40500

COST INVOLVED

Cost of production= $12150(30% of $40500)

Machine purchase cost = $ 4250

Installation charges = $ 150

Cost of deprecation = 30% per year.

4250* 30/100 = $ 1275 per year

1275*1/12= $ 318.75 per month
For three months’ time = $956
 Total cost of installing vending machine= installation cost ($150) + cost of
deprecation (956) = $899.83
Total Cost Involved = $13256

MEETING CRITICAL ISSUE

It partially meets the critical issue as it adds up $450 to the daily sales.

CHANCES OF THE OPTION CAN GO WRONG

 If OBS planned to install only one vending machine, so in large campus like Fanshawe
College, it might not be much effective to increase sale.
 Some customers are health conscious, so they believe in fresh food that to be made in front of
their eyes. Therefore, vending machine cannot be considerable option for some customers.
21 | P a g e

ALTERNATIVE 3: 20 PERCENTAGE DISCOUNTS ON MEAL PURCHASE BY ISSUING

COUPONS

Saying by offering a 20% discount for spending above 20$ at a restaurant. And consider giving
25000coupons and 10 percent of coupons redeemed in a three-month span.

EXPECTED OUTCOME FROM SALES OF THIS OPTION

Total sales solely relay on coupon sale in three months

2500x20 = $50000

Sales after deducting the discounted amount = $40000 (80% of $50000)

Daily sales increase per day =$445 (Total sales/90 days)

DROP IN SALES

Since the daily customers will also use the coupons for the purpose of getting the discount we need to
calculate the actual values of daily sales after the discounts

Regular daily sales without discount =800

Actual sales with discount in effect = 640

COST INVOLVED

Cost of production= $15000(30% of $50000)

Coat of printing one coupon =$0.10

Cost of printing coupons= 0.10x25000 =$2500

Total cost = $17500

MEETING CRITICAL ISSUE

It partially meets the critical issue as it adds up $250 to the daily sales.

CHANCES OF THE OPTION CAN GO WRONG

 Some customers might believe that if restaurant is giving discount so, they might decrease
quality of their products.
 Coupons are valid for only limited period of time. So when restaurant stop using coupons it
might can decrease the numbers of customers because for some customers it is only one and
done deal.
22 | P a g e

ALTERNATIVE 4: ADVERTISEMENT USING FLYERS

Considering we are choosing flyers for advertisement both inside and outside the campus

EXPECTED OUTCOME FROM SALES OF THIS OPTION

Considering $20 as sales occurred by a customer

10x20 = $200

For three months period = 200x90 = $18000

COST INVOLVED

Cost of production= $6000(30% of $18000)

For printing 2000 flyers, it will cost OBS $400 ($0.20/flyer)

Total cost = $8500

MEETING CRITICAL ISSUE

It partially meets the critical issue as it adds up $200 to the daily sales.

CHANCES OF THE OPTION CAN GO WRONG

 Publicity on social media comes with major disadvantage of negative comments and
feedbacks from customer. It can affect the reputation of restaurant.
 If you are distributing flyers, some people just get it and ignore it to read. Some just do not
care to read the full information provided in flyers.
 23 | P a g e

CONTENT ALTERNATIVE 1 ALTERNATIVE 2 ALTERNATIVE 3 ALTERNATIVE 4

Impact on
4 4 16 5 20 2 8 3 12
Daily sales

Ease of
implementatio 2 4 8 3 6 5 10 4 8
n

Time
1 3 3 2 2 4 4 4 4
consumption

Cost of
implementatio 3 2 6 5 15 5 15 3 9
n

TOTAL 33 43 37 33

Table 1Weighted Decision matrix

WEIGHTED DECISION
MATRIX

For the decision criteria, we have ranked alternatives from 2 to 5, considering to as the least efficient
one and 5 being the better one.
24 | P a g e

SELECTION OF PREFERRED ALTERNATIVE

To increase the daily sales of OBS we have analyzed four alternative solutions and
calculated expected per day sales increase. Our team analyzed four options to cover the critical issues
which involved impact on daily sales to cost of implementation of the solutions. Our team concluded
that selecting one option wouldn’t be sufficient to increase daily sales. So, we chose two options that
we are explaining below:

1. Installing vending machine near campus entrance and wellness centers

2. 20 percentage discounts on meal purchase by issuing coupons

Out back shack must meet the criteria of daily sale of $1500. According to our quantitative analysis
we assessed that we need to club two alternative solution to increase daily sales.

1. INSTALLING VENDING MACHINE NEAR CAMPUS ENTRANCE AND

WELLNESS CENTRES

QUANTITATIVE ANALYSIS

 HIGHEST RANKED ON WEIGHTED DECISION MATRIX

According to our weighted decision matrix, vending machine has highest decision criteria
weightage (43). This is majorly because Impact on daily sales has the highest weightage and this
option is making the highest sales increase. By installing vending machine OBS can increase
daily sales up to $450/day.

QUALITATIVE ANALYSIS

 ONE TIME INVESTMENT: By installing vending machine OBS can achieve short term as
well as long term goal. Because installing vending machine is like one time investment.
 LOW OVERHEADS: this option comes with the benefit such as there is no need to hire
additional employee to maintain and operate vending machine.
 24 HOUR SERVICE: this option will give service of 24 hours as restaurant would be closed
after 8pm but students at college can use vending machine all day. So it could be reason be
attracting more customer as Fanshawe College is open 24 hours.
 CONVENIENCE: installing vending machine could be benefit for customer as in busy hours
they don’t need to stay in queue as they can use vending machine service. Moreover, large
campuses like Fanshawe College, it is convenient for customer rather than to come at
restaurant from all around the college.
25 | P a g e

2. 20 PERCENTAGE DISCOUNTS ON MEAL PURCHASE BY ISSUING COUPONS

According to our weighted decision matrix, issuing coupon has the second highest decision
criteria weightage (37). This is majorly because ease of implementation and its cost of
implementation. By issuing coupon OBS can increase daily sales up to $445/day.

QUANTITATIVE ANALYSIS:

 As our analysis we concluded that by issuing coupons it would increase daily sales by $445
each day. Furthermore, cost for this option would be $200/day therefore with least cost this
option can help OBS to achieve the goal of daily sale.
 According to weighted matrix issuing coupon is most easy option to implement as there is no
need to add additional devices or equipment’s. Restaurant just need to add discount option to
their old computerized system.

QUALITATIVE ANALYSIS:

 IMMEDIATE RESPONSE: as OBS is in a situation where they need immediate action

therefore, coupons could be best option because this is short term solution but comes with
immediate reaction.
 DIGITAL COUPONS: coupons and discount deals have gone digital these days.
Automation in coupons can help to reduce the cost and extra burden of printing receipt and
delivery it to customer.
 LESS RISK INVOLVED: investment comes with risk but this option has least risk rather
from all options because there is no additional investment which would be on risk. So this is
very calculated option with low risk and high profits.
26 | P a g e

PREDICTION OF OUTCOME

O F O U TC O M E
PR ED IC TIO N
BEST CASE
SCENARIO
WORST CASE
SCENARIO

 BEST CASE SCENARIO

 Currently we have $800 daily sales, and our target is to make the sales to $1500. Our
preferred alternative solutions are contributing to increase the sales above $1500.

Number of regular customers visiting store without the alternative methods = 40

Average total sale price per meal = $20
Regular total sale = $800 (40X20)

Actual sales with discount in effect = 640 (Daily sales x .8 discounted price)

Predicted daily sale increase due to vending machine= $450

Total Sales per day after implementation of alternative solutions =$1535

 Main reason for dropping daily sale was that due to pandemic college was closed and OBS
lost their customers. So, these two option will attract customer from college and by choosing
vending machine, customer can enjoy the service without any physical contact.

 WORST CASE SCENARIO

 There can be opposite outcome from giving discount to customers. there can be chance that
cost of production increase due to some reasons like, increase in minimum wage rate, cost of
transportation for delivery of raw material and inventory. In that case if OBS continued to
give discounts to customers the restaurant could incur losses.
 As the cases of COVID19 are still increasing there are chances that the lockdown will be
initiated again. These types of unexpected issues can cause the OBS to face more challenges
and investing in vending machines will be a tough decision to take.
27 | P a g e

IMPLEMENTATION PLAN FOR EACH ALTERNATIVE

INSTALLING 2 VENDING MACHINES NEAR WELLENSS CENTER AND NEAR

CAMPUS ENTRANCE

1. Approval from upper management for installation of the machine: To getting permission from
Fanshawe College, firstly OBS should write an official letter to administration department.
Moreover, official letter includes all details regarding the vending machine such as location
and number of vending machines that are to be installed in the main campus.
2. Selection of location- We are going to suggest the location for installing vending machine. for
this, OBS will select the location from the following preferred places such as:
 Near the wellness center
 Near campus entrance
3. Choosing the vender for buying and contract with them: There are various vendors in London
where OBS would get good deal to buy vending machines. Our team shortlisted some of
vendors that are given below:
 Channon vending ltd
 London vending service
 Simonas vendor Colvern distributors.
4. Stocking of vending machine: vending machine needs to be updated at the time of stock out
so that customers gets the full access of the food items. for this, responsibilities should be
assigned among staff. There is also need for replacement of stock from 24 hours or it will also
depend upon expiry of food items.
5. Small advertisement campaign: little advertisement in college would help to give raise the
awareness about vending machines. By pasting banners at the main doors of college helps
OBS to increase the sales moreover give information about vending machines to those
customers who are coming to the restaurant.
28 | P a g e

IMPLEMENTATION PLAN FOR COUPONS

1. Format of coupons: for implementing coupons, OBS’s priority should be selecting the format
for coupons. Format should be clear and concise and should have all the required content.
 Discount that is valid for customer
 Expiration date
 Trackable code

2. Designing of coupon: the next step for implementation of coupon is an effective design.
Coupon should be eye catching. It should be without errors and spelling mistakes. Clear and
concise message is important factor to consider. Sometimes too much information can also
lead to distraction.
3. Duration of time: we suggest OBS to distribute 25000 coupons ,8333 coupons each month.by
all means, issuing coupons is three months plan to increase their sales.
4. Publishing and distribution of coupons: our team is suggesting that the publishing of coupons
to be done by The UPS store or minuteman press London north and holiday print and
promotion ltd. for distribution OBS should employed one of the existing employee to handle
the distribution of coupons. OBS should target frequently visited places such as masonville
and white oaks mall.
29 | P a g e

CONCLUSION
For the business consultant project, the project topic we selected was increasing daily sales
which were dropped due to current unexpected situations. Increasing sales for a small business can be
challenging as it required a lot of effort and time to figure out which alternative solutions we must
choose. Our team researched many ideas about how any company can improve sales. In the end, our
team found four solutions to resolve the main issue. Each alternative was analyzed using a weighted
discission criteria matrix and we have selected the best two solutions. The options we selected are,
installing a vending machine and issuing coupons for customers. We also made an implementation
plan for how these options should be implemented and to increase our daily sales to $1500 from our
current s800. On the other hand, current external factors have a major influence on the current
decreasing daily sales and our action plans are the best to make the OBS keep running.
30 | P a g e

BIBLIOGRAPHY
Harrison, J. P. (2010). STRATEGIC PLANNING AND SWOT ANALYSIS. Essentials of Strategic Planning in
Healthcare, 90-97.

Triantaphyllou, E. (2000). MULTI-CRITERIA DECISION MAKING. In Applied Optimization . Springer,

Boston, MA.

Yüksel, İ. (2012). Developing a Multi-Criteria Decision Making Model for PESTEL. International
Journal of Business and Management, Vol. 7, No. 24.
31 | P a g e

BACK PAGE