AFM211 Lecture Notes - Lecture 4: Pizza Hut, Customer Satisfaction, Peter Symonds

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM211
• Professor: Nancy Vanden Bosch

Document Summary

Melissa simpson, loan officer: impressed, chances of paying back the loan of ,000. Mall in high income neighbourhood with higher than average disposable income. Competitors food court places: from family restaurants and italian food. Ugly dog as niche in the marketplace (between roadhouse and fast food) Magazines, commercials, flyers, newspaper ad, free lunch for mall managers. Pizza chains focused on take-out/delivery: left market segment unserviced capture this part. Year 1 ,200,00 (with low of ,000,000 and high of ,500,00) Wc loan of ,000 in poor sales months to cover high fixed costs. Maintain inventory as 8 days of cogs: fluctuations are ok. Other costs: management salaries: 9, maintenance & repairs: 1, supplies: 2, misc. operating (inclu. equip. leases) = 8. 9, rent: /sq foot, insurance & utilities: ,000, promotions/charity: 2. 5% Supplier terms averaged around 15 days for new businesses. ,000 yearly from mmmmmuffins selling interest as capital: in total, ,000 start-up financing from john.