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Case Study 3: Menu, Channel and Profitability Analysis for Circle of Crust — Viman Nagar, Pune
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Business Background
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Circle of Crust is a pizza and café-style restaurant operating in Viman Nagar, Pune, with a broad menu consisting of pizzas, pasta, garlic breads, wings, beverages, combos and other food items.
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The outlet serves customers through multiple channels:
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Dine-in
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Direct takeaway
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Food-delivery platforms such as Swiggy and Zomato
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The restaurant has several popular items and a large menu, but management wants to understand whether the items that sell the most are also the items that generate the strongest profitability.
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The outlet also needs to understand how:
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menu mix,
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add-ons,
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kitchen capacity,
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delivery-platform commissions,
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pricing,
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and fixed operating costs
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affect the profitability of the overall business.
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Business Problem
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Management asks:
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How can Circle of Crust improve outlet profitability without unnecessarily damaging customer demand?
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The analysis needs to identify:
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1. Which menu items are most valuable?
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2. Which items are popular but relatively weak in contribution?
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3. Which highly profitable items are currently under-selling?
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4. Which add-ons create the most additional basket contribution?
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5. Which items make the best use of constrained kitchen capacity?
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6. How does profitability change between dine-in, takeaway and delivery platforms?
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7. Should food-delivery platform prices be marked up?
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8. Is the outlet profitable overall under the operating assumptions?
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9. Which actions should management prioritize?
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Analysis Scope
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A representative selection of 10 menu items was used:
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Pijja Chatkare
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Smoke Show
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Chicken Trio
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Veg Heaven
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Cheesy Keema Garlic Bread
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Thecha Chicken Wings
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Teekha Mac N Cheese
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Penne Arrabbiata
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Classic Cold Coffee
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Family Combo – Non Veg
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The analysis evaluates the products across several business dimensions.
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Analytical assumptions
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Because actual internal POS and financial records are unavailable, the following were modelled:
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Monthly sales volume
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Ingredient/food cost
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Customer basket combinations
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Channel mix
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Delivery-platform commission
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Packaging cost
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Kitchen preparation time
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Monthly fixed operating expenses
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Customer demand response to price changes
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