Fine dining

Abstract

Case Description: This case is widely applicable because it is short, easy to understand, involves an industry that students are familiar with, yet offers the opportunity for discussion of some basic marketing or strategic management issues. The case illustrates the problems that arise when a service start-up fails to consider the demographics of the target market. It also gives students the opportunity to grapple with solutions to a seemingly intractable problem. This case has a difficulty level of 3 or 4. It could be positioned in an undergraduate strategic management or marketing case to demonstrate the problems that arise when there is a disconnect between strategy and the external environment/target market. It could also easily be used in a small business or entrepreneurship course to demonstrate the hazards that even an experienced small business owner can face when they fail to consider the demographics of their market. Case Synopsis: Six months after opening her restaurant, Stacy Brokaw was experiencing problems. From an operational stand point things seemed to be going well. Her restaurant had been reviewed favorably by a regional magazine and she was attracting a small but regular group of customers. On the other hand weekly sales were consistently 30% below her forecasts and she had lost $45,000 during her first six months of operations. A survey conducted among current customers suggested that many would prefer a more family oriented environment. She also opened at a time when the US economy was going into a steep decline. Stacy's dream had been to open a fine dining establishment in her home town. She had worked very hard to make this opportunity work, but now it seemed to be slipping through her fingers. At the end of the case Stacy is struggling with how to respond to this situation.