Applebee’s is the largest casual dining chain in the world with 1,970 locations throughout the United States and nearly 20 other countries worldwide. The menu features beef, chicken, and pork items as well as burgers, pasta, and seafood. The Applebee’s CEO wants to make the restaurant more profitable. The CEO believes that customers will pay for a “tastier menu” which will generate more profits. (Management Information Systems, 13th edition, page 480).
However, Applebee’s must deal with rising costs for labor and restaurant operating expenses such as insurance, taxes and utilities. Transportation and gasoline costs have risen and food products are more expensive. And, today’s consumer is more aware of spending habits.
Questions:
1) From a manager’s perspective (which may be different from the CEO’s perspective), briefly identify the problems identified by the CEO.
2) What problems other than the menu might prevent the restaurant from being more successful?
3) What pieces of data would Applebee’s need to collect to earn more profits?
4) How might you use social media to collect data and information?
5) What kinds of reports would be useful to help your management make decisions on how to improve menus and profitability?
6) How would your team determine the success or failure of this initiative?