for anyone

 

Scenario: 

Pastas R Us, Inc. is a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. Since its inception, the business development team has favored opening new restaurants in areas (within a 3-mile radius) that satisfy the following demographic conditions:

• Median age between 25 – 45 years old
• Household median income above national average
• At least 15% college educated adult population

Last year, the marketing department rolled out a Loyalty Card strategy to increase sales. Under this program, customers present their Loyalty Card when paying for their orders and receive some free food after making 10 purchases.

The company has collected data from its 74 restaurants to track important variables such as average sales per customer, year-on-year sales growth, sales per sq. ft., Loyalty Card usage as a percentage of sales, and others. A key metric of financial performance in the restaurant industry is annual sales per sq. ft. For example, if a 1200 sq. ft. restaurant recorded $2 million in sales last year, then it sold $1,667 per sq. ft.

Executive management wants to know whether the current expansion criteria can be improved. They want to evaluate the effectiveness of the Loyalty Card marketing strategy and identify feasible, actionable opportunities for improvement. As a member of the analytics department, you’ve been assigned the responsibility of conducting a thorough statistical analysis of the company’s available database to answer executive management’s questions.

Report: 

Write a 750-word statistical report that includes the following sections:

Section 1: Scope and descriptive statistics
Section 2: Analysis
Section 3: Recommendations and Implementation

Section 1 – Scope and descriptive statistics

• State the report’s objective.
• Discuss the nature of the current database. What variables were analyzed?
• Summarize your descriptive statistics findings from Excel. Use a table and insert appropriate graphs.

Section 2 – Analysis 

• Using Excel, create scatter plots and display the regression equations for the following pairs of variables:
• “BachDeg%” versus “Sales/SqFt”
• “MedIncome” versus “Sales/SqFt”
• “MedAge” versus “Sales/SqFt”
• “LoyaltyCard(%)” versus “SalesGrowth(%)”
• In your report, include the scatter plots. For each scatter plot, designate the type of relationship observed (increasing/positive, decreasing/negative, or no relationship) and determine what you can conclude from these relationships.

Section 3: Recommendations and implementation

• Based on your findings above, assess which expansion criteria seem to be more effective. Could any expansion criterion be changed or eliminated? If so, which one and why?
• Based on your findings above, does it appear as if the Loyalty Card is positively correlated with sales growth? Would you recommend changing this marketing strategy?
• Based on your previous findings, recommend marketing positioning that targets a specific demographic. (Hint: Are younger people patronizing the restaurants more than older people?)
• Indicate what information should be collected to track and evaluate the effectiveness of your recommendations. How can this data be collected? (Hint: Would you use survey/samples or census?)

Cite references to support your assignment.

ChartDataSheet_

This worksheet contains values required for MegaStat charts.

Residuals X data 3/19/2007 7:49.25

66
18
45177
34.4
31

69
16
51888
41.2
20

67
10
51379
40.3
24

70
4
66081
35.4
29

78
0
50999
31.5
18

62
28
41562
36.3
30

70
28
44196
35.1
14

84
29
50975
37.6
33

68
22
72808
34.9
28

60
42
79070
34.8
29

80
36
78497
36.2
39

64
32
41245
32.2
23

80
22
33003
30.9
22

88
78
90988
37.7
37

42
35
37950
34.3
24

68
32
45206
32.4
17

80
48
79312
32.1
37

84
32
37345
31.4
22

35
27
46226
30.4
36

84
24
70024
33.9
34

78
16
54982
35.6
26

80
39
54932
35.9
20

70
70
34097
33.6
20

76
33
46593
37.9
26

56
12
51893
40.6
21

65
32
88162
37.7
37

62
0
89016
36.4
34

66
20
114353
40.9
34

76
24
75366
35
30

92
36
48163
26.4
16

112
34
49956
37.1
28

66
15
45990
30.3
36

70
28
45723
31.3
18

60
15
43800
29.6
36

86
10
68711
32.9
18

76
0
65150
40.7
24

68
16
39329
29.3
22

64
0
63657
37.3
29

52
36
67099
39.8
25

78
26
75151
33.9
28

64
28
93876
35
40

82
32
79701
35
39

86
30
77115
35.9
30

92
16
52766
33
17

72
10
32929
30.9
22

90
24
87863
38.5
29

64
20
73752
40.5
19

80
20
85366
32.1
29

102
30
39180
34.8
18

70
26
56077
38
19

62
26
77449
37
34

68
20
56822
34.7
25

74
24
80470
36.4
30

84
14
55584
36.8
21

70
32
78001
32.2
30

96
32
75307
34.8
30

70
22
76375
36.7
28

76
32
61857
33.8
31

62
28
61312
34.2
16

92
23
72040
39
31

60
20
92414
34.9
40

54
15
92602
39.3
33

110
23
59599
35.6
28

78
0
72453
36
23

72
31
67925
41.1
16

74
29
42631
24.7
25

94
0
75652
40.5
25

80
16
39650
32.9
18

124
0
48033
30.3
15

46
20
67403
36.2
19

66
0
80597
32.4
27

63
28
60928
43.5
21

72
15
73762
41.6
29

76
24
64225
31.4
15

NormalPlot data 3/19/2007 7:49.03

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38.4697564504
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0.5490667518

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1.6514108613

289.7338930992
1.8007082352

336.0904495556
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372.5195939607
2.3669115357

Residuals X data 3/19/2007 8:01.41

66
18
45177
34.4
31

69
16
51888
41.2
20

67
10
51379
40.3
24

70
4
66081
35.4
29

78
0
50999
31.5
18

62
28
41562
36.3
30

70
28
44196
35.1
14

84
29
50975
37.6
33

68
22
72808
34.9
28

60
42
79070
34.8
29

80
36
78497
36.2
39

64
32
41245
32.2
23

80
22
33003
30.9
22

88
78
90988
37.7
37

42
35
37950
34.3
24

68
32
45206
32.4
17

80
48
79312
32.1
37

84
32
37345
31.4
22

35
27
46226
30.4
36

84
24
70024
33.9
34

78
16
54982
35.6
26

80
39
54932
35.9
20

70
70
34097
33.6
20

76
33
46593
37.9
26

56
12
51893
40.6
21

65
32
88162
37.7
37

62
0
89016
36.4
34

66
20
114353
40.9
34

76
24
75366
35
30

92
36
48163
26.4
16

112
34
49956
37.1
28

66
15
45990
30.3
36

70
28
45723
31.3
18

60
15
43800
29.6
36

86
10
68711
32.9
18

76
0
65150
40.7
24

68
16
39329
29.3
22

64
0
63657
37.3
29

52
36
67099
39.8
25

78
26
75151
33.9
28

64
28
93876
35
40

82
32
79701
35
39

86
30
77115
35.9
30

92
16
52766
33
17

72
10
32929
30.9
22

90
24
87863
38.5
29

64
20
73752
40.5
19

80
20
85366
32.1
29

102
30
39180
34.8
18

70
26
56077
38
19

62
26
77449
37
34

68
20
56822
34.7
25

74
24
80470
36.4
30

84
14
55584
36.8
21

70
32
78001
32.2
30

96
32
75307
34.8
30

70
22
76375
36.7
28

76
32
61857
33.8
31

62
28
61312
34.2
16

92
23
72040
39
31

60
20
92414
34.9
40

54
15
92602
39.3
33

110
23
59599
35.6
28

78
0
72453
36
23

72
31
67925
41.1
16

74
29
42631
24.7
25

94
0
75652
40.5
25

80
16
39650
32.9
18

124
0
48033
30.3
15

46
20
67403
36.2
19

66
0
80597
32.4
27

63
28
60928
43.5
21

72
15
73762
41.6
29

76
24
64225
31.4
15

NormalPlot data 3/19/2007 8:01.03

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Data

Pastas R Us, Inc. Database (n = 74 restaurants)

Square Feet
Per Person Average Spending
Sales Growth Over Previous Year (%)
Loyalty Card % of Net Sales
Annual Sales Per Sq Ft
Median HH Income (3 Miles)
Median Age (3 Miles)
% w/ Bachelor’s Degree (3 Miles)

Obs
SqFt
Sales/Person
SalesGrowth%
LoyaltyCard%
Sales/SqFt
MedIncome
MedAge
BachDeg%

1
2354
6.81
-8.31
2.07
701.97
45177
34.4
31

2
2604
7.57
-4.01
2.54
209.93
51888
41.2
20

3
2453
6.89
-3.94
1.66
364.92
51379
40.3
24

4
2340
7.13
-3.39
2.06
443.04
66081
35.4
29

5
2500
7.04
-3.30
2.48
399.20
50999
31.5
18

6
2806
6.93
-1.94
2.96
264.64
41562
36.3
30

7
2250
7.11
-0.77
2.28
571.59
44196
35.1
14

8
2400
7.13
-0.37
2.34
642.25
50975
37.6
33

9
2709
6.58
-0.25
2.20
461.45
72808
34.9
28

10
1990
6.77
-0.17
2.34
638.82
79070
34.8
29

11
2392
6.66
0.47
2.09
484.38
78497
36.2
39

12
2408
7.03
0.55
2.47
581.09
41245
32.2
23

13
2627
7.03
0.77
2.04
267.71
33003
30.9
22

14
2500
7.00
1.92
2.02
572.84
90988
37.7
37

15
1986
7.38
2.05
2.01
586.48
37950
34.3
24

16
2500
7.18
2.12
2.64
368.73
45206
32.4
17

17
2668
7.35
2.84
2.22
351.47
79312
32.1
37

18
2517
6.95
2.88
2.07
458.24
37345
31.4
22

19
1251
7.02
3.96
1.94
987.12
46226
30.4
36

20
2998
6.85
4.04
2.17
357.45
70024
33.9
34

21
2625
7.16
4.05
0.72
405.77
54982
35.6
26

22
2300
6.99
4.05
2.00
680.80
54932
35.9
20

23
2761
7.28
4.24
1.81
368.02
34097
33.6
20

24
2764
7.07
4.58
2.13
303.95
46593
37.9
26

25
2430
7.05
5.09
2.50
393.90
51893
40.6
21

26
2154
6.54
5.14
2.63
562.12
88162
37.7
37

27
2400
6.70
5.48
1.95
494.88
89016
36.4
34

28
2430
6.91
5.86
2.04
310.07
114353
40.9
34

29
2549
7.58
5.91
1.41
373.46
75366
35.0
30

30
2500
7.03
5.98
2.05
235.81
48163
26.4
16

31
3653
6.84
6.08
2.13
413.08
49956
37.1
28

32
2440
6.94
6.08
2.08
625.22
45990
30.3
36

33
2600
7.07
6.13
2.73
274.30
45723
31.3
18

34
2160
7.00
6.27
1.95
542.62
43800
29.6
36

35
2800
7.08
6.57
2.04
178.56
68711
32.9
18

36
2757
6.75
6.90
1.62
375.33
65150
40.7
24

37
2450
6.81
6.94
1.95
329.09
39329
29.3
22

38
2400
7.64
7.12
1.64
297.37
63657
37.3
29

39
2270
6.62
7.39
1.78
323.17
67099
39.8
25

40
2800
6.76
7.67
2.23
468.84
75151
33.9
28

41
2520
7.11
7.91
2.15
352.57
93876
35.0
40

42
2487
7.05
8.08
2.83
380.34
79701
35.0
39

43
2629
6.90
8.27
2.37
398.12
77115
35.9
30

44
3200
7.17
8.54
3.07
312.15
52766
33.0
17

45
2335
6.75
8.58
2.19
452.16
32929
30.9
22

46
2500
7.45
8.72
1.28
698.64
87863
38.5
29

47
2449
7.00
8.75
1.76
367.19
73752
40.5
19

48
2625
6.96
8.79
2.51
431.93
85366
32.1
29

49
3150
7.30
8.90
1.90
367.06
39180
34.8
18

50
2625
6.96
9.12
1.98
400.53
56077
38.0
19

51
2741
6.71
9.47
2.41
414.36
77449
37.0
34

52
2500
6.82
10.17
2.17
481.11
56822
34.7
25

53
2450
6.58
10.66
2.16
538.06
80470
36.4
30

54
2986
7.56
10.97
0.29
330.48
55584
36.8
21

55
2967
6.98
11.34
1.85
249.93
78001
32.2
30

56
3000
7.28
11.45
1.88
291.87
75307
34.8
30

57
2500
6.76
11.51
2.19
517.40
76375
36.7
28

58
2600
6.92
11.73
2.56
551.58
61857
33.8
31

59
2800
6.73
11.83
2.16
386.81
61312
34.2
16

60
2986
6.91
11.95
2.10
427.50
72040
39.0
31

61
2223
6.77
12.47
1.98
453.94
92414
34.9
40

62
2300
7.33
12.80
0.87
512.46
92602
39.3
33

63
3799
7.87
13.78
1.07
345.27
59599
35.6
28

64
2700
6.95
14.09
3.38
234.04
72453
36.0
23

65
2650
7.33
14.23
1.17
348.33
67925
41.1
16

66
2500
6.95
14.60
2.14
348.47
42631
24.7
25

67
2994
7.21
14.88
0.93
294.95
75652
40.5
25

68
2718
7.25
15.42
2.22
361.14
39650
32.9
18

69
3700
7.65
16.18
1.68
467.71
48033
30.3
15

70
2000
6.93
17.23
2.41
403.78
67403
36.2
19

71
2400
6.79
18.43
2.81
245.74
80597
32.4
27

72
2450
7.37
20.76
1.09
339.94
60928
43.5
21

73
2575
6.76
25.54
0.64
400.82
73762
41.6
29

74
2400
7.97
28.81
1.77
326.54
64225
31.4
15

Noodles Database – Page &P of &N Printed &D Doane/Seward