Ginny’s Restaurant Case An Introduction to Capital Investment Valuation 1. Virginia’s current wealth is $4‚830‚188.68 CF0=2‚000‚000 CF1=3‚000‚000 I/Y=6% Virginia can spend and consume now $4‚830‚188.68. If she waits to spend and consume for one year she will have $5‚120‚000 to spend and consume. 2. Virginia should invest $3‚000‚000 in Ginny’s Restaurant. In one year the $4‚000‚000 endowment will be worth $4‚240‚000 without investing it. If Virginia invests $3‚000‚000 in Ginny’s
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000‚000 = $5‚150‚943 f. $4 million investment PV = $5‚400‚000/(1+0.06)1 = $5‚094‚340 Virginia’s optimal investment in the restaurant is $3 million‚ which give her a total of $5‚150‚943 at the end of year 1. This is approximately a 29% increase in her wealth. 3. PV of investment with $2.8m borrowed FV = Restaurant Future Cash flows – [Principle(1+0.06)] = $4‚400‚000 – [$2‚800‚000(1.06)] = $4‚400‚000 - $2‚968‚000 = $1‚432‚000 PV = $1‚432‚000/1.06 = $1‚350
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Problem Statement: Jose’s Mexican restaurant is a small yet popular spot. Lately they have been losing customers and profits due to service issues. In order to improve the restaurant‚ Jose’s Mexican Restaurant must provide service that is top-notch‚ in other words fast‚ efficient‚ great testing‚ convenient and heartwarming. What must the restaurant do in order to improve service? Areas for consideration: Quality at Jose’s restaurant should be defined by service‚ value‚ reliability of the
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Chipotle Mexican Grill Chipotle Mexican Grill is an example of a relatively recent entrant in the national fast-food space that has provided exceptional quality to customers. Chipotle started as a one-shop burrito restaurant in Denver in 1993 that today is a publicly traded company with $1.3 billion in revenues from 1‚000 restaurants. The company offers fast-casual‚ fresh Mexican food restaurants in the United States‚ UK‚ and Canada. In 2010 it had revenues of $1.74 billion. Chipotle has differentiated
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Restaurants may be classified or distinguished in many different ways. The primary factors are usually the food itself (e.g. vegetarian‚ seafood‚ steak); the cuisine (e.g. Italian‚ Chinese‚ Indian‚ French‚ Thai) and/or the style of offering (e.g. tapas bar‚ a sushi train‚ a tastet restaurant‚ a buffet restaurant or a yum cha restaurant). Beyond this‚ restaurants may differentiate themselves on factors including speed (see fast food)‚ formality‚ location‚ cost‚ service‚ or novelty themes (such as
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Analysis of key issues: Joshua Matthew is putting himself in a very highly competitive segment. He really likes the downtown location; however this area is heavily populated with restaurants. There are over a 100 restaurants in this district‚ were 71 shares a similar price range and were 12 of these restaurants have the same European or French atmosphere. Matthew focuses on attracting the business clientele‚ and his main competitor in the financial district‚ Reds‚ also attracts the young downtown
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To: John Miles‚ Owner Subject: Jose’s Authentic Mexican Restaurant Date: 11/25/2013 As you requested on November 18‚ this report summarizes my analysis and recommendation regarding the customer survey results that management conducted last Friday and Saturday during the dinner crowd at Jose’s Authentic Mexican Restaurant. The main problem that I see is the high percentage of customers who are unsatisfied with the time it took to be served their ordered food. It is extremely important to provide
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Executive Summary Our team has been instructed to help advise on a business case involving a restaurant‚ The Mongolian Grill. It’s 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
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The Grill Business Plan Prepared by: Business Idea 4 What will the business do? 4 Who will pay the business to do it? 4 Why will they pay the business to do it? 4 Market Research 5 Target Market 5 Customer Segments 5 Industry Analysis 5 Customer Characteristics 6 Competition 7 SWOT Analysis 7 Operations 8 Business Ownership Structure 8 Scheduling and Human Resources 8 Location and Transportation 9 Furnishings‚ Equipment and Services 10 Product and Service Direct Costs 11
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Chipotle Mexican Grill Presented to Dr. Robert McNeal Department of Business Administration College of Business Administration Alabama State University In Partial Fulfillment of the Requirements for the Course MGT 462.01 Business Policies 5:30 M W (Spring 2009) Submitted by: Helena Bryant Gianni Gilbert Chad Jenkins Juanterra Looney Adana Wilson Due: April 1‚ 2009 Transmittal Letter April 1‚ 2009 To: Dr. Bob McNeal From: Helena Bryant Gianni Gilbert Chad Jenkins
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