Executive Summary

Our team has been instructed to help advice on a business case involving a restaurant, The Mongolian Grill. Its owner, John Butkus, is contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations.

Our decision is that Mr. Butkus should choose to implement both options. The additional capacity is definitely needed, and the demand to fill the capacity is also present. We calculated the possible revenue that could be earned under two sections: Low additional demand and High additional Demand. The additional revenue generated in these two scenarios are $42 900 and $31 200, respectively. Also, the in both of these scenarios, the time needed to pay for the cost of the required expansions are less than a year.

We have looked at a number of possibilities, both positive and negative, and we feel that this is the best option. There really is no justification to not go through with the changes. They will result in a greater profit, both in the short and long run. Our analysis is included in the following document. Problem Statement
John Butkus, owner of the Mongolian Grill restaurant in London Ontario, had to finalize his major design decision for his second restaurant in Waterloo, Ontario that would optimize the restaurant’s profitability and compromising the dining experience of his customers.

Situation Analysis

Company background

The Mongolian Grill is fresh food served in a relaxed and adventurous atmosphere. It prides itself on not only delivering good food, but also an original dining experience