Crusty Dough Pizza

Case Study 1: Crusty Dough Pizza

Group 6

MBA 624： Business Analysis for Decision Making

Name：Alejandro Partidas Barrios, Shawnee McDaniel, Shuqun Wang, Mei Wu

Jan. 17, 2016

Introduction

The Crusty Dough Pizza Company (CDPC) is comprised of sixty stores. The following is an analysis of sixty restaurants.  Sixteen characteristics shown below were compared to monthly profits.  The results of this analysis can be used to determine the services and attributes that are most likely to lead to profitable restaurants.

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Of the sixteen factors, five attributes stood out and made the largest impact on monthly profits.  The following graphs and paragraphs will summarize the group findings.

Key Factor One: Store Size

The larger store size leads to higher average profit.  We recommend building larger stores in the future to maximize the profits for this trend.

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Key Factor Two:  Student Population

A higher student population leads to higher profits.

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Key factor Three: Monthly Advertising Expenditure

Overall, there is a positive correlation between stores with higher monthly advertising expenditures and profits.  The data indicates a steep increase in profits for those stores that spend at least $1,250 on ads as seen in the graph below (Figure 1.a).   Further, stores spending below median amount of $1,789 on advertising are consistently earning less than $11,264 monthly.  This is well below Crusty’s median monthly profit of $12,199.  To ensure profitability, Crusty’s restaurant should be spending at least $1,789 per month on advertising.   [pic 5][pic 6]

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Key Factor Four: Seating

The pie chart below displays that 72% of the profit comes from those stores that have a dine-in option.  For the restaurants that do not have a dine-in option, it would be wise to include one to increase profits.

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Key Factor Five: Liquor License

Larger stores offered liquor more frequently than smaller stores which is one reason they bring in more profit.  Stores that carried a liquor license generate more profit than those that did not.  

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