Crusty Dough Pizza Company Descriptive Statistics
Crusty Dough Pizza Company – Maximizing Monthly Profits
Introduction
This paper provides a summary of our analysis of the data obtained for 60 Crusty Dough Pizza Company restaurants. We compared 16 pizza store characteristics to monthly profit in order to determine the best indicators of success. The results of this analysis may be used to determine the store services and attributes that have the most bearing on profitably.
In our analysis, we compared the profits earned by 60 Crusty Dough Pizza Company restaurants to factors associated to their menu, amenities, services, and statistics regarding the restaurant communities. The factors that we analyzed are listed in Table 1.
Table 1. List of Factors Compared to Monthly Profit
We computed descriptive statistics (mean, median, mode, standard deviation, coefficient of variation, range, and outliers) for the 16 factors given in the data and for monthly profit. Of the 16 factors used in the analysis, five stand out for their clear association with an increase in monthly profits: 1) Monthly Advertising Expenditure, 2) Store Size, 3) Student Population, 4) Delivery Service, and 5) Customer Seating.
Table 2. Stores Ranked by Monthly Profit For comparison purposes, we separated our stores into quartiles, and ranked them from highest to lowest, by profit. (Table 2) This method enabled us to demonstrate clear correlation between those stores that were most profitable and those that were least profitable in relation to the factors of monthly advertising, store size, and store population. (We noted that the coefficient of variation for the fourth quartile is extremely high, and that this data should be used with caution. We believe that at least part of this high variation is attributed to the fact that some stores did not make a profit, and actually lost revenue.)
For the factors of delivery service and customer seating, we separated stores that offered the service or
Introduction
This paper provides a summary of our analysis of the data obtained for 60 Crusty Dough Pizza Company restaurants. We compared 16 pizza store characteristics to monthly profit in order to determine the best indicators of success. The results of this analysis may be used to determine the store services and attributes that have the most bearing on profitably.
In our analysis, we compared the profits earned by 60 Crusty Dough Pizza Company restaurants to factors associated to their menu, amenities, services, and statistics regarding the restaurant communities. The factors that we analyzed are listed in Table 1.
Table 1. List of Factors Compared to Monthly Profit
We computed descriptive statistics (mean, median, mode, standard deviation, coefficient of variation, range, and outliers) for the 16 factors given in the data and for monthly profit. Of the 16 factors used in the analysis, five stand out for their clear association with an increase in monthly profits: 1) Monthly Advertising Expenditure, 2) Store Size, 3) Student Population, 4) Delivery Service, and 5) Customer Seating.
Table 2. Stores Ranked by Monthly Profit For comparison purposes, we separated our stores into quartiles, and ranked them from highest to lowest, by profit. (Table 2) This method enabled us to demonstrate clear correlation between those stores that were most profitable and those that were least profitable in relation to the factors of monthly advertising, store size, and store population. (We noted that the coefficient of variation for the fourth quartile is extremely high, and that this data should be used with caution. We believe that at least part of this high variation is attributed to the fact that some stores did not make a profit, and actually lost revenue.)
For the factors of delivery service and customer seating, we separated stores that offered the service or
References: Gardner, E., Kimpel, T. and Zhao, T. (2012). “American Community Survey User Guide.” U.S. Office of Financial Management (OFM), May, 2012, Retrieved from: http://www.ofm.wa.gov/pop/acs/userguide/ofm_acs_user_guide.pdf Shafai, Jena. (2012). Business Resources, Bellevue University, MBA 610, chapter 3.