Tutti Matti
TUTTI MATTI
Critical Issues
After spending 6 years in Tuscany, Italy learning all aspects of a restaurant’s operation, Solomon returned to Canada and opened her first Tuscan Cuisine restaurant in Downtown Toronto. In order to survive in the competitive restaurant industry and discouraging economy condition, Solomon needs to address the following issues: 1. How to remain profitable so that she can pay off her initial investment of $380,000. With a low contributed margin (Appendix 2), Solomon will not able to pay off her coming interest on her loans if TUTTI MATTI sale decreases due to the economy downturn. 2. How to maintain strong customer base so that she can eliminate the impact of the economy downturn. The restaurant sales revenue will hit a dramatic downturn in the following season when less family and friends are coming in. 3. How to better promote TUTTI MATTI to attract more customers. The current marketing strategy and returning diners can’t ensure long term profitability; without a direct way to communicate with its target market, TUTTI MATTI can’t survive in the long run. 4. How to compete with her competitors such as Alice Fazooli’s and Terroni. Both of the major competitors have good public reputation and royalty customer base, and they are located in a popular area closed to TUTTI MATTI. TUTTI MATTI has little competitive advantages to compete with them.
Analysis
1. The major problems and causes summarized from Appendix 1: SWOT are listed below: 1) TUTTI MATTI does not have enough sales volume during weekdays and dinner. * Customers are not aware of TUTTI MATTI: TUTTI MATTI is newly opened in November 2002 and little people are familiar with the Tuscan cuisine. Without any advertisement, Solomon is not able to reach out further to her target market by her current marketing strategy and the returning customers. * TUTTI MATTI is not located on a popular street: Even TUTTI MATTI is located within a walking
Critical Issues
After spending 6 years in Tuscany, Italy learning all aspects of a restaurant’s operation, Solomon returned to Canada and opened her first Tuscan Cuisine restaurant in Downtown Toronto. In order to survive in the competitive restaurant industry and discouraging economy condition, Solomon needs to address the following issues: 1. How to remain profitable so that she can pay off her initial investment of $380,000. With a low contributed margin (Appendix 2), Solomon will not able to pay off her coming interest on her loans if TUTTI MATTI sale decreases due to the economy downturn. 2. How to maintain strong customer base so that she can eliminate the impact of the economy downturn. The restaurant sales revenue will hit a dramatic downturn in the following season when less family and friends are coming in. 3. How to better promote TUTTI MATTI to attract more customers. The current marketing strategy and returning diners can’t ensure long term profitability; without a direct way to communicate with its target market, TUTTI MATTI can’t survive in the long run. 4. How to compete with her competitors such as Alice Fazooli’s and Terroni. Both of the major competitors have good public reputation and royalty customer base, and they are located in a popular area closed to TUTTI MATTI. TUTTI MATTI has little competitive advantages to compete with them.
Analysis
1. The major problems and causes summarized from Appendix 1: SWOT are listed below: 1) TUTTI MATTI does not have enough sales volume during weekdays and dinner. * Customers are not aware of TUTTI MATTI: TUTTI MATTI is newly opened in November 2002 and little people are familiar with the Tuscan cuisine. Without any advertisement, Solomon is not able to reach out further to her target market by her current marketing strategy and the returning customers. * TUTTI MATTI is not located on a popular street: Even TUTTI MATTI is located within a walking