Room for Dessert
1. How do you rate the business plan for RFD? How do you rate the business idea itself? (Use a 1 to 5 scale, 1 being weak and 5 being very strong.)
The business idea is worth 4/5 for the following reasons: From the introduction part of the proposal it is clear that Room for Dessert is enjoying good business and high customer numbers. The administration has a busy time answering phone calls from people seeking to reserve a table and from people placing orders. On the other hand, many business people from surrounding offices are coming in to place order, pick their previously ordered desserts, and to purchase some liquor or backing ingredients. Tourists and shoppers also find RFD a favorite spot. Customers find this spot better in terms of ambience, and cost effectiveness compared to other famous spots like Starbucks.
This business plan seeks to expand the full services offered by RFD to new stores featuring spirits, wines, take-outs and signature ingredients. The idea is to locate the new stores in metropolitan markets where there is high traffic and on upscale communities’ surroundings. The funds secured will be used for establishing a Boston unit, and 10 units in the Northwest. The goal for RFD is to become a national chain with more than 40 retail units and $50 million worth of sales by the end of year 2002. The business model used will lay emphasis on multiple streams of revenue, high margins, geographical expansion, and low cost of investment. The management seeks to leverage on high capacity and economies of scale with the establishment of more units.
The business idea is worth a 5/5. On paper the future of RFD will be great if the management can replicate what is happening in the Newbury Street unit everywhere else. This idea to include takeout desserts, spirits, signature ingredients and wine seems great. The expansion of the restaurant spaces to 70 seats per unit, a private...
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