Tutti Matti Essay

1511 Words Jun 8th, 2010 7 Pages
TUTTI MATTI
Critical Issues
After spending 6 years in Tuscany, Italy learning all aspects of a restaurant’s operation, Solomon returned to Canada and opened her first Tuscan Cuisine restaurant in Downtown Toronto. In order to survive in the competitive restaurant industry and discouraging economy condition, Solomon needs to address the following issues: 1. How to remain profitable so that she can pay off her initial investment of $380,000. With a low contributed margin (Appendix 2), Solomon will not able to pay off her coming interest on her loans if TUTTI MATTI sale decreases due to the economy downturn. 2. How to maintain strong customer base so that she can eliminate the impact of the economy downturn. The restaurant sales
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* Pro * Attract more customers * Con * Hard to deliver the message to customers * BYOW will decrease contributed margin generating from beverage sales

4. Preferred Alternatives 1) Develop its own website
Launching a website is best way to directly communicate with its customers. It is easy for the potential customers be aware of the restaurant’s name and what it offers. In order to launch its own website, the initial investment is $1500 plus monthly subscription which can be estimated at $70. Solomon negotiated with one of her staff who has computer programming experience to maintain the site for $24 ($12 * 2) per month. The total expenses for the first month will be $1594 ($1500 +$70 +$24), with the gross profit of 8940 from prior mouth, Solomon will be able to cover the initial cost within the first month. The monthly maintaining cost will be $94.

We are short of website traffic statistical information to

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