Question

The manager of a fast food restaurant is considering having a one-day promotional sale on milkshakes by all his restaurant chains. However, before doing that he wants to know if the one-day promotional sale on milkshakes will affect his total revenues from hamburger sales by his restaurant. The manager has hired you as a consultant to analyze the problem and make recommendations. What kind of information would you want to analyze to make the recommendation? Assume that the price of hamburgers remains unchanged.

Answer 1

As it is the promotionl sale the main effect will be on hamburger sales. The main analysis will be done on the revenue that will be generated due to these sale for that particular day. Due to these promotional sales there will be more demand for Hamsburgers thus the revenue increases but the profit will be based on the cost of milk shakes. SO the revenue of that day will be taken into consideration and the expected demand that the milk shakes will have due to that event. Thus the revenue that may be generated will also be estimated basing on the sale of milk shakes.

They Will also analyze the prodiuction and selling concept of both Hamburgers and Milk shakes , promotional mix and impact of this sales on future .