Crusty Dough Pizza Company – Maximizing Monthly Profits

Introduction

This paper provides a summary of our analysis of the data obtained for 60 Crusty Dough Pizza Company restaurants. We compared 16 pizza store characteristics to monthly profit in order to determine the best indicators of success. The results of this analysis may be used to determine the store services and attributes that have the most bearing on profitably.

In our analysis, we compared the profits earned by 60 Crusty Dough Pizza Company restaurants to factors associated to their menu, amenities, services, and statistics regarding the restaurant communities. The factors that we analyzed are listed in Table 1.

Table 1. List of Factors …show more content…

Table 6. Overall Store Profitability Compared by Delivery Service (yes or no)

Factor 5. Seating and Profit. In order to analyze the seating factor, we divided the stores into those that had the amenity and those that did not. We then compared the profitability of the stores with and without seating (Table 7.). On average, the stores that offer seating earned close to $10,000 more monthly profit than those that do not have seating – this is true when using either the means or medians for comparison. There is significant variation in the data for this factor and the data is not very consistent. It should also be noted that there are no ‘non-seating’ stores in the highest quartile for profit.

Table 7. Overall Store Profitability Compared by Seating (yes or no)
Factors With Little or No Influence.

Several factors that we expected to have more influence stood out for their relative lack of effect on store profitability. Whether or not a store had a liquor license, if newspaper reviews were good or bad, the proximity of competitors, general populations at varying distances from store locations, and pizza varieties all had no major effect on monthly profit.

Conclusions.

The ideal combination of factors for maximizing the profit potential of a Crusty Dough Pizza Company restaurant is a very large store, located in an area with lots of students, the store should offer