Decision Making

1. Introduction

Owning a restaurant comes with numerous responsibilities. Besides ensuring activities run smoothly and suppliers are supplying food regularly, an owner also needs to concern in bringing a new pool of customers. By doing so, the owner is more likely to increase sales. A good marketing strategy is to have various beverage selections in accompany to the restaurant’s gourmet food. As always, introducing a new menu to the table is always a good strategy. However, several factors come into play when the new “menu” is alcohol. There is no doubt that serving alcohol will attract a new group of customers who were not regulars. As indicated by a research, the most profitable restaurants in America make 75 percent of its income from alcohol sales (Derek 2018). As a matter of fact, people spend more on alcohol unlike any other form of entertainment. Its popularity, therefore, guarantees that selling it at the restaurant will increase the number of customers who visit it.

It is also true that owners of craft beer can ideally decide the price of their product depending on the quality of alcohol that has been brewed. This simply means that as the owner, one can set competitive prices that keep them at bay or above their key competitors. This increases the amount of revenue collected at the end of the day.

There are several reasons why adding new brewery section is a right decision. First of all, alcohol is the most popular form of entertainment for most people around the world. Second, while there are many established brands in the market, people are always more willing to try out new brands that can establish themselves well. Therefore, it is beneficial to establish an owned brand since the restaurant already has its own channel for publication.

Indeed, loyal customers will always want to try out what the restaurant has to offer. Just like they are willing to take a special menu or recipe, they will be willing to taste homemade beer that has a traditional touch to the restaurant that they frequent. Therefore, it is confident to say that since the restaurant already has a market, all it needs to do is to satisfy customers by new products. Finally Crafting beer is not always an easy thing to do. It requires special skill which we believe we possess.

The only way to tell whether our beer are better than that of our competitor are by its popularity. People will tend to show their appreciation for good beer by buying it more often and with word of mouth, it will bring more customers. Therefore, if our beers sell more than that of competitor then we will be making better beer.

However, the main goal of opening this pub is to increase the number of customers that come to our restaurant. First we need a space which has the capacity to have 30 tables, with each we can fit 4 seats. The sitting area around the bar will be 16 seats. This will come to a total of 136 seats. We then estimate a daily turnover rate is to be 4 times, but the occupancy of the restaurant is to be about 70% and another 80% of the alcohol consumption rate, because not all customers will order beer with their food. If we work only 340 days in a year, this will get us approximately 103,578 customers per year just for this beer section. This will, in turn, increase the amount of revenue that we make than the restaurant is getting us currently.

The remainder of this research is structured as follows: First, making statement about final goal. The second section is Managerial decision-making process for selected functional areas of the new business unit. There are 5 functional areas, including Marketing Management, Innovation Management, Operations Management, Financial Management, Organizational Management and Human Resources Management. The third section includes selected decision support tools for each functional area. There are 4 differences methodological framework in this report. Including SWOT, PESTEL Analysis, What-if Analysis and Optimization Analysis. Evaluation of the results from the business simulation is presented in the fourth part. Finally, the recommended strategy and implementation plan in this research and conclusion are described.