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Running Head: ANALYSIS REPORT 1

ANALYSIS REPORT 3

ANALYSIS REPORT

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Scope and Descriptive Statistics

The purpose of this analysis was to establish the feasibility of the strategies adopted by Pastas R Us Inc. as a means of expansion of its business. Pastas Inc. is a fast-casual restaurant dealing with noodle dishes, soups, and salads. The company keeps track of various variables, including sales per customer, year-on-year sales growth, sales per square feet, and loyalty card usage.

The current database contains various variables, including the area of restaurants in square feet, the amount of money spent per customer (sales/person), the sales growth over the previous year (sales growth %), the amount of loyalty card as a percentage of sales (Loyalty Card %) annual sales per square feet (Sales/sqft), median household income for households within three miles radius(MedIncome), the median age for households within three miles radius (MedAge) and percentage of customers with bachelor's degree in the 3-mile radius.

Relationships between various variables were analyzed. More specifically, an analysis was done for customers with bachelor's degrees versus sales per square feet, median income versus sales per square feet, median age versus sales per square feet, and loyalty card % versus growth %. The results of the statistical analysis are as follows:

Bach Degree % vs. Sales/Sqft
MedIncome vs. Sale/Sqft
MedAge vs. Sales/Sqft
Loyalty Growth % vs. Sales Growth %

Analysis

Bachelor’s Degree versus Sales per Square Feet

It was found out that there is a positive relationship between the percentage of customers with a bachelor’s degree and the sales per square feet. From the analysis, it is concluded that the sales per square feet of the restaurants increase with an increase in the number of customers with bachelor’s degrees.

Median Income versus Sales per Square Feet

There is a negative relationship between the customers' household median income and the number of sales per square feet. From the analysis, it is concluded that increases in the median household income of the company's customers led to a subsequent decrease in the sales per square feet. Therefore, the wealthier a household becomes, the less likely a customer from that household will buy fast food from the company.

Median Household Age versus Sales per square feet

There exists no relationship between the media age and sales per square feet. A change in the median age does not lead to any significant difference in the number of sales per square feet for the restaurants. Therefore, changing the median age cannot lead to substantial sales changes for the company.

Loyalty Card as a Percentage of Sales versus Sales Growth

There is a negative relationship between the percentage of sales bought through the loyalty card program and the sales growth based on the previous year. As the percentage of sales used for loyalty card sales increases, the sales decrease. Therefore, the introduction of the loyalty card strategy decreased rather than increased the sales for Pastas R Us Inc.

Recommendations

From the above analysis, it is clear that Pastas R Us Inc. should follow the bachelor's degree expansion strategy for its business. Targeting customers with a bachelor's degree can significantly increase the number of sales per square feet, as indicated by the strong positive relationship between the two variables. The bachelor's degree expansion criterion is the most effective of all the strategies adopted by the company.

The customers’ median household criterion should be changed so that the company targets families with lower median incomes rather than those with higher incomes. This way, the sales per square feet would increase. The household median age and the Loyalty Card criteria should be eliminated. The median age criterion does not affect the sales per square feet, while the Loyalty Card criterion has a negative effect on the expansion objectives.

From the findings, the Loyalty Card appears to be negatively correlated with sales growth, as indicated by a downward sloping regression line. I would recommend changing this strategy.

While age has a significantly low influence on the sales per square feet in the restaurants, there is a trend that younger customers are patronizing the restaurants more than the older customers. Therefore, the company should position itself as a young people's company of choice.

To evaluate the effectiveness of the above recommendations, data regarding sales per square feet, and sales growth percentage should be collected. Surveys should be undertaken, where the above information is collected and later analyzed to establish the effectiveness of the recommendations. Surveys provide more detailed data compared to, say, samples (Dhand, 2015).

Reference

Dhand, N. (2015). Descriptive Statistics. Take it Easy! Statulator. Retrieved from http://www.statulator.com/blog/descriptive-analysis-take-it-easy/

BachDeg%

Sales/Sqft

Bach Deg %

MedIncome

701.97 209.93 364.92 443.04 399.2 264.64 571.59 642.25 461.45 638.82000000000005 484.38 581.09 267.70999999999998 572.84 586.48 368.73 351.47 458.24 987.12 357.45 405.77 680.8 368.02 303.95 393.9 562.12 494.88 310.07 373.46 235.81 413.08 625.22 274.3 542.62 178.56 375.33 329.09 297.37 323.17 468.84 352.57 380.34 398.12 312.14999999999998 452.16 698.64 367.19 431.93 367.06 400.53 414.36 481.11 538.05999999999995 330.48 249.93 291.87 517.4 551.58000000000004 386.81 427.5 453.94 512.46 345.27 234.04 348.33 348.47 294.95 361.14 467.71 403.78 245.74 339.94 400.82 326.54000000000002 45177 51888 51379 66081 50999 41562 44196 50975 72808 79070 78497 41245 33003 90988 37950 45206 79312 37345 46226 70024 54982 54932 34097 46593 51893 88162 89016 114353 75366 48163 49956 45990 45723 43800 68711 65150 39329 63657 67099 75151 93876 79701 77115 52766 32929 87863 73752 85366 39180 56077 77449 56822 80470 55584 78001 75307 76375 61857 61312 72040 92414 92602 59599 72453 67925 42631 75652 39650 48033 67403 80597 60928 73762 64225

Sales/Sqft

MedIncome

MedAge

701.97 209.93 364.92 443.04 399.2 264.64 571.59 642.25 461.45 638.82000000000005 484.38 581.09 267.70999999999998 572.84 586.48 368.73 351.47 458.24 987.12 357.45 405.77 680.8 368.02 303.95 393.9 562.12 494.88 310.07 373.46 235.81 413.08 625.22 274.3 542.62 178.56 375.33 329.09 297.37 323.17 468.84 352.57 380.34 398.12 312.14999999999998 452.16 698.64 367.19 431.93 367.06 400.53 414.36 481.11 538.05999999999995 330.48 249.93 291.87 517.4 551.58000000000004 386.81 427.5 453.94 512.46 345.27 234.04 348.33 348.47 294.95 361.14 467.71 403.78 245.74 339.94 400.82 326.54000000000002 34.4 41.2 40.299999999999997 35.4 31.5 36.299999999999997 35.1 37.6 34.9 34.799999999999997 36.200000000000003 32.200000000000003 30.9 37.700000000000003 34.299999999999997 32.4 32.1 31.4 30.4 33.9 35.6 35.9 33.6 37.9 40.6 37.700000000000003 36.4 40.9 35 26.4 37.1 30.3 31.3 29.6 32.9 40.700000000000003 29.3 37.299999999999997 39.799999999999997 33.9 35 35 35.9 33 30.9 38.5 40.5 32.1 34.799999999999997 38 37 34.700000000000003 36.4 36.799999999999997 32.200000000000003 34.799999999999997 36.700000000000003 33.799999999999997 34.200000000000003 39 34.9 39.299999999999997 35.6 36 41.1 24.7 40.5 32.9 30.3 36.200000000000003 32.4 43.5 41.6 31.4

Sales/Sqft

MedAge

LoyaltyCard%

-8.31 -4.01 -3.94 -3.39 -3.3 -1.94 -0.77 -0.37 -0.25 -0.17 0.47 0.55000000000000004 0.77 1.92 2.0499999999999998 2.12 2.84 2.88 3.96 4.04 4.05 4.05 4.24 4.58 5.09 5.14 5.48 5.86 5.91 5.98 6.08 6.08 6.13 6.27 6.57 6.9 6.94 7.12 7.39 7.67 7.91 8.08 8.27 8.5399999999999991 8.58 8.7200000000000006 8.75 8.7899999999999991 8.9 9.1199999999999992 9.4700000000000006 10.17 10.66 10.97 11.34 11.45 11.51 11.73 11.83 11.95 12.47 12.8 13.78 14.09 14.23 14.6 14.88 15.42 16.18 17.23 18.43 20.76 25.54 28.81 2.0699999999999998 2.54 1.66 2.06 2.48 2.96 2.2799999999999998 2.34 2.2000000000000002 2.34 2.09 2.4700000000000002 2.04 2.02 2.0099999999999998 2.64 2.2200000000000002 2.0699999999999998 1.94 2.17 0.72 2 1.81 2.13 2.5 2.63 1.95 2.04 1.41 2.0499999999999998 2.13 2.08 2.73 1.95 2.04 1.62 1.95 1.64 1.78 2.23 2.15 2.83 2.37 3.07 2.19 1.28 1.76 2.5099999999999998 1.9 1.98 2.41 2.17 2.16 0.28999999999999998 1.85 1.88 2.19 2.56 2.16 2.1 1.98 0.87 1.07 3.38 1.17 2.14 0.93 2.2200000000000002 1.68 2.41 2.81 1.0900000000000001 0.64 1.77

SalesGrowth%

LoyaltyCard%

BachDeg%

Sales

Bach Deg %

MedIncome

Sales/Sqft

MedIncome

MedAge

701.97 209.93 364.92 443.04 399.2 264.64 571.59 642.25 461.45 638.82000000000005 484.38 581.09 267.70999999999998 572.84 586.48 368.73 351.47 458.24 987.12 357.45 405.77 680.8 368.02 303.95 393.9 562.12 494.88 310.07 373.46 235.81 413.08 625.22 274.3 542.62 178.56 375.33 329.09 297.37 323.17 468.84 352.57 380.34 398.12 312.14999999999998 452.16 698.64 367.19 431.93 367.06 400.53 414.36 481.11 538.05999999999995 330.48 249.93 291.87 517.4 551.58000000000004 386.81 427.5 453.94 512.46 345.27 234.04 348.33 348.47 294.95 361.14 467.71 403.78 245.74 339.94 400.82 326.54000000000002 34.4 41.2 40.299999999999997 35.4 31.5 36.299999999999997 35.1 37.6 34.9 34.799999999999997 36.200000000000003 32.200000000000003 30.9 37.700000000000003 34.299999999999997 32.4 32.1 31.4 30.4 33.9 35.6 35.9 33.6 37.9 40.6 37.700000000000003 36.4 40.9 35 26.4 37.1 30.3 31.3 29.6 32.9 40.700000000000003 29.3 37.299999999999997 39.799999999999997 33.9 35 35 35.9 33 30.9 38.5 40.5 32.1 34.799999999999997 38 37 34.700000000000003 36.4 36.799999999999997 32.200000000000003 34.799999999999997 36.700000000000003 33.799999999999997 34.200000000000003 39 34.9 39.299999999999997 35.6 36 41.1 24.7 40.5 32.9 30.3 36.200000000000003 32.4 43.5 41.6 31.4

Sales/Sqft

MedAge

LoyaltyCard%

SalesGrowth%

LoyaltyCard%