case study 2 sales factors

case study 2 sales factors - go to Charleys Steak House for...

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Charley’s Steak House: Major Contributing Sales Factors 2.) There were many factors that contributed to the difference between actual net sales and planned net sales in 2003. The major factors included: the number of meals, the sales mix between lunch and dinner, the average gross check at lunch and dinner and the usage of coupons. At the beginning of the year Charley’s Steak House planned to have approximately 3,850 meals per week. The actual number average number of meals per week was 4,025. This means that on average 175 more meals were prepared per week and 9,100 additional meals were needed for the total year. Since there were more meals than expected, the actual net sales would become a lot higher. The plan for the sales mix between lunch and dinner was 40% lunch and 60% dinner. It turned out that the sales mix was actually split even at 50% for lunch and dinner. Since the amount of dinner sales was not 60% or higher it will cause the net sales to decrease. Because of the installation of the new touch screen to speed up service, many more daytime workers could
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Unformatted text preview: go to Charleys Steak House for lunch break. The average gross check for lunch was right on point at $7.50; so the planned and actual was the same. However, for dinner there was an estimation of $10.50, but the actual dinner average check was $11.00. This caused the net sales to decrease because lunch sales accounted for 50% of the service and they were only bringing in $7.50 per meal. When you look at the net check you can find out about the coupon usage. The average net check for lunch was budgeted at $7.00 for lunch and $10.00 for dinner. It actually turned out that the average net check was $6.50 for lunch and $10.00 for dinner. The sales mix once again caused the net sales to have a negative effect. Even thought there was an increase in the number of meals with 9,100 more, the sales mix, average gross check, and coupon usage all had negative effects on the net sales. In total there is a $35,035 decrease in net sales....
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case study 2 sales factors - go to Charleys Steak House for...

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