The Olive Tree Case Study Essay Example | Topics and Well Written Essays - 1500 words

The Olive Tree Case Study - Essay Example This is a good aspect for its business position (Porter, 2008). The initial costs that include  £143,000 for annual rent,  £445,000 for turning the bank into a restaurant, and a bank loan of  £335,000 have not been covered especially considering that only sales amounting to  £588,498 were realized in the entire trading period. Nevertheless, without considering all the costs of establishing the restaurant, a net loss amounting to  £76,602 is recorded, further strengthening that the restaurant is yet to make profits. This paper focuses on the Olive Tree Restaurant Case Study. The paper presents an analysis of its performance that give way to meaningful recommendations based on the business performance indicators. In this regard, the analysis is based on an interview conducted with Angelo, the restaurant owner, as the respondent. Some data on the restaurants progress in terms of sales, costs, rent, rates, fuel, wages, and other operating costs were collected. Analysis was done on this data in order to confirm the responses provided though the interview. The Olive Tree Restaurant boasts of a number of strengths although, like any other business, there are various weaknesses associated with its operations. The major strength is its ability to recording large sales amounting to almost  £600,000 (588,498 to be exact) within the first trading period. i. Loyal Customers: With regard to this strength, the restaurant management ensures that customer are warmly welcomed after entering the restaurant thus encouraging them to remain loyal to the business (McQuarrie, 2006). This aspect specifically generates the feeling of being special, appreciated and honoured by being a customer to the restaurant. In return, a customer is likely to feel important to seek the restaurant services a second time or even become a loyal customer (Chamberlain, 2010). ii. Effective restaurant operations: This strength is