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Nick's Pizza and Pub Case Study

In: Business and Management

Submitted By Rotti
Words 848
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Nick’s Pub and Pizza Case Study
By
Daniel Rottlaender
MGMT2603221

Nick’s Pub and Pizza restaurant franchise was just one of many companies that got into financial trouble after the economic crisis of 2009. In the case of Nick’s Pub and Pizza however, it had serious consequences due to the fact that the owner of Nick’s Pub and Pizza was planning on expanding the franchise from only two restaurants to five. Unfortunately, the recession caused by the depression of 2009 caused guests count to drop by twenty percent leading to revenues decreasing by almost $1 million. On top of the crisis caused by the recession, the management of both restaurants struggled to keep the costs as low as possible. Every single week they did a count on their food inventories to the previous week in order to adjust this for the current week’s sales. Even though beverage and food costs were still above goal, 22 percent of revenues for beverages and 20 percent of revenues for food, the restaurant’s total revenues were still decreasing. The reason for that was that the management constantly hired externally due to the experience they gained in other restaurant chains. In those restaurant chains the idea of leadership was based on “command and control” cultures. That basically means that the management only told people what to do without digging into what they did believing that the instructed with a task would perform that job correctly. All these issues (Costs up, revenues down) caused the bank not approving the loan for the expansion of the restaurant franchise, which led to Nick’s Pub and Pizza focussing on fixing and growing the current restaurants of the chain. Possible solutions have to consider some … One of them is that Nick’s Pub and Pizza is one of the restaurants that focuses on offering affordable food, which means that the prices for food and drinks have to remain on a low…...

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