There is a problem because Kathy Kelleher, manager of Bentley’s wanted to keep
the market open to everyone. But everything seemed to be targeted toward the
student and faculty at the University of Arizona. What is the critical question?
The critical question is if she wanted to provide a facility that would appeal
to all why is Kathy Kelleher putting so much effort into exposing the University
market to Bentley’s. This is the basis for the problem because Kelleher had
neglected to offer specials or other promotional items to attract people other
than the university crowd. What are the critical factors? 1) Pleased to see many
students seated throughout the restaurant due to a current advertisement in the
local newspaper. 2) Promoted a University of Arizona student/faculty dinner for
$5.95 from 4:00 to 6:00 daily. 3) Students dismissed Bentley’s in the past
because it was out of their price range. 4) Kelleher wanted everyone to feel
comfortable in her establishment, and thought it was time to expose the
university market to the restaurant. 5) The overall sales mix was 80 percent
food and 20 percent alcoholic beverages. 6) Kelleher made her mission statement
very clear. “We offer a little bit of everything for everyone. The last thing
I want to do is limit the market to one particular group.” 7) Kelleher decided
to offer two separate menus beginning in August of 1988. 8) The dinner check
average was $17.00 including beverages. 9) Front-of –the house employees were
unhappy because they had to serve more customers to make the same amount of
money. 10) The chef and cooks were less enthusiastic since they considered the
lower price additions to the dinner menu to be incompatible with the overall
concept and not worthy of their attention. 11) Lunch service was discontinued on
weekdays in early 1989 after covers plummeted by 75%. 12) Management blamed the
decrease on the construction on a former parking lot, which had previously been
used by the restaurant guests. 13) Lunch customers were unable to park and went
elsewhere. 14) Kelleher eliminated significant overhead by closing during the
day. 15) Averaged 100 covers Monday to Wednesday. Averaged 125 covers Thursday
and Friday Averaged 200 covers Saturday and Sunday. Averaged 300 covers for
Sunday brunch. 16) Management attempted to fill the slow periods by offering
dinner for two for $11.95 on Monday. 17) Advertising was directed toward
different markets during different seasons. 18) Tucson television channel 13 has
awarded the establishment with 4 stars. 19) Kelleher spent a lot of time
visiting competitors in order to identify new ideas and trends to implement at
her restaurant. 20) Comment cards were distributed as a means of monitoring the
Bentley’s experience and comparing it to the competition. 21) As an incentive
to complete the comment card a random drawing awarded a complimentary Sunday
brunch for two. 22) Results from the comment cards rated the menu and service
very high. 23) Customers requested less expensive menu items. 24) Spends a
considerable amount of money on a large arrangement of flowers for the
entranceway and fresh flowers for each table. The flowers confused customers
since they assumed that the restaurant was out of their price range. 25)
Originally initiated the cut-rate specials as a means of reaching the price
sensitive market. 26) First time customers were surprised they could afford
Bentley’s if they timed it correctly. The conditions for solution 1) If they
invest in a parking lot then they would attract more lunch customers. 2) If they
advertised their outside bar to the surrounding businesses then they could
attract people after work for a drink at the end of the day. 3) If Kelleher
offered $5.95 specials to all customers during off peak times then they would
attract more people outside the university. 4) If they invested in artificial
flowers they would have money to put somewhere else. She could increase wages
for the angry workers that have to work twice as hard. 5) If she is really
trying to attract tourists then she could offer a discount for persons who show
an out of state ID card. 6) If she chose a particular market to target then
there would more likely be a higher rate of success. 7) If they continue to
offer specials then they will more likely develop an ongoing relationship with
customers. 8) If they continue to have good food and service then people will
refer their friends and family. 9) If Bentley’s had a new concept with light
meals, relatively low prices, good service and informal atmosphere then students
would be more likely to go there. Situation analysis Strengths a) received a
four star rating b) Corporation opened several establishments in the southwest
region and offered high quality at a good value. c) Offered on and off premise
catering. d) Bentley’s was located in the historic part of town. This is how
they can attract tourist. e) Committed to aggressive promotion to keep the
public talking (offering a $5.95 special to students/faculty). f) Comment cards
rated the menu and service very high. g) Gave the customer a choice of
customizing their own menu for parties of twenty or more. h) The only 70 seat
outdoor patio in the area where you could just order drinks. Weaknesses a)
Lowering prices to get the student and faculty to come in and dine during off
peak time. b) Not having enough parking for lunch customers and discontinuing
lunch service on weekdays. c) Specials were limited to certain entrées.
Opportunities a) As an incentive for customers to fill out comment cards they
selected one from a random drawing for a free brunch. b) By opening the only
outdoor patio with a bar in town she is allowing the people to stop by just for
a drink without the obligation of ordering food. Lots of people would like to
stop in for a drink this would attract a whole new crowd. c) By lowering the
prices they could attract more people who eat at McDonald’s by giving more
affordable prices. Threats a) Not having enough parking will force people to go
somewhere else. b) Having a formal décor like this restaurant has may make some
informal customers feel uncomfortable. Even though they say this is a casual
place. c) Competition, if they can not provide what the customer wants they will
go elsewhere. d) Offering too low prices could attract more customers but it
might give a negative result. Assumptions a) I assume fresh flower arrangements
cost a lot and if Kelleher got rid of them she would be able to lower prices for
everyone. She would more likely attract more customers from the university
because the touches of flowers give a formal atmosphere rather than an informal
one. b) I assume investing in a parking lot will attract more customers because
they wouldn’t have to search for a parking space. I assume this will also
allow them to reopen for lunch. c) I assume that if they don’t invest in a
parking lot they will lose more customers during the hours between 4:00 to
6:00pm when people are still at work and parking spaces are not available. d) I
assume that if Kelleher keeps her customers happy they will return and also
refer friends and family. Conclusion In conclusion I see that Kelleher need to
focus on one particular market. You can please most of the people most of the
time but you can’t please all of the people all of the time. If she cut out
the flower arrangements which makes people think this is a formal environment
more students would come in and dine because they are looking for something
casual. Basically Kelleher needs to give the students what they want for a price
that they can afford or they will take their business elsewhere. By offering
lower prices she will be able to bring in more of the university population
which will result in compensation for lower check averages.