1. LAKESIDE GRILL REPORT Prepared by Alexa Gaudin Destiny Johnson Brooke Redding Zach Zambrano Juan Nolasco

2. Sample Characteristics

3. Sample Size  Total sample size = 253 respondents  204, 80.6% have eaten at Lakeside Grill  49, 19.4% have not eaten at Lakeside Grill

4. Age and Gender of Sample Age Gender

5. Household Income of Sample

6. Distance of Sample from Lakeside Grill Live Work

7. New Variables

8. Total Meals Eaten at Lakeside Grill Mean = 9.25Mode = 10Median = 8.5 Standard Deviation = 4.87

9. Type of User Type of UserNumber of Meals Eaten Sample Size Percent of Sample Light users 1 to 6 meals6230.7% Moderate users 7 to 10 meals7637.6% Heavy users 11 or more meals6431.7%

10. Type of Diner Type of UserValues for GroupSample Size Percent of Sample Evening diner -18 to -26431.7% Both meals -1 to +17738.1% Lunch diner +2 to 256130.2% To determine the type of diner each person was a value was calculated for Number of Noon Meals – Number of Evening Meals

11. What is the current level of customer satisfaction and patronage with the various aspects of Lakeside Grill. Research Objective One

12. Number of Noon (lunch) Meals Mean = 4.96Mode = 2Median = 7.5 Standard Deviation = 4.41

13. Number of Evening (Dinner) Meals Mean = 4.33Mode = 5Median = 8.5 Standard Deviation = 3.41

14. One Thing You Like Best

15. One Thing You Dislike the Most

16. Lakeside Satisfaction Ratings (Part I)

17. Lakeside Satisfaction Ratings (Part II)

18. Satisfaction Ratings by Type of Diner  Location more important for noon diners (4.26) than evening diners (3.61)

19. Satisfaction Ratings by Type of User

20. Satisfaction Ratings by Gender

21. Satisfaction Ratings by Age

22. Satisfaction Ratings by Income

23. Satisfaction Ratings by Distance Live

24. Conclusions  Food is Number 1 reason customers like Lakeside  Wait time is primary dislike of Lakeside  19.3% eat at least once a week  Highest ratings were for food  Lowest ratings for parking, speed of service, appearance  Females tended to rate Lakeside lower than males  Younger consumers tended to rate food lower  Appearance lower for younger and older consumers

25. Why Have Individuals Not Patronized the Lakeside Grill? Research Objective Two

26. Why Have Not Eaten at Lakeside Grill

27. Conclusions  Awareness Number 1 reason for not eating at Lakeside

28. How Has the Addition of a New Competitor Down the Street Impacted the Lakeside Grill’s Customer Base? Research Objective Three

29. Most Preferred Ranking of Restaurants

30. Rating of Food at Fisherman’s Paradise Note: 90.9% of sample had eaten at Fisherman’s Paradise.

31. How Has Fisherman’s Paradise Affected Patronage at Lakeside Grill?

32. Impact of Fisherman’s Paradise by Type of User

33. Impact of Fisherman’s Paradise by Type of Diner

34. Impact of Fisherman’s Paradise by Age

35. Conclusions  Ranking Questions  Lakeside “Most preferred” by 30.6% of the sample  Lakeside ranked 2 nd (Happy Times Bar first)  Lakeside rank 1 st or 2 nd by 56% of the sample  37% rated food better at Fisherman’s Paradise than Lakeside  Eating less or quit eating at Lakeside Grill  26.1% of total sample  23.6% of heavy users and 22.1% of moderate users  23.5% of noon diners and 21.4% of evening diners  33.3% of individuals 50-59 and 27.6% of individuals 18-29

36. Would changing Lakeside Grill’s menu or amenities increase sales? Research Objective Four (A)

37. Importance of New Items to Patronage

38. Importance of New Items by Type of User

39. Importance of New Items by Type of Diner

40. Importance of New Items by Gender

41. Importance of New Items by Age

42. Importance of New Items by Income

43. Importance of New Items by Distance Live

44. Conclusions  Most important in patronage decision are free bread, healthier meals, and lunch menu  Healthier meals  Lunch menu  Positively related to usage  Inversely related to income  Mini-deserts  Desired by moderate users, middle income, and females  Important to females – mini-deserts, half-portions, healthier foods  Entertainment inversely related to age and income

45. Would changing the advertising, and/or promotional practices increase sales? Research Objective Four (B)

46. Importance of Marketing Tactics

47. Importance of Marketing Tactics by Type of Diner  Advertising in newspapers more important for evening diners (2.27) than noon diners (1.97)

48. Importance of Offering Coupons by Type of Diner

49. Importance of Marketing Tactics by Gender

50. Importance of Marketing Tactics by Age

51. Importance of Marketing Tactics by Income

52. Importance of Radio Advertising by Distance Live

53. Conclusions  Price-off promotions important  Tends to decline with age  Advertising on TV somewhat important

54. Research Insights

55. Monthly Sales for Lakeside Grill 20102011 2012 Fisherman’s Paradise Opened (April 2012) Sales Growth Stagnates

56. Insights (Part I)  Strong customer core  People eat at Lakeside because of food  Large, loyal group eats about once/week (30%)  Ranked 1 st or 2 nd by 56% of sample  Impact of Fisherman’s Paradise  New restaurant phenomenon  Lost approximately 20% of customers  Lost primarily moderate/heavy diners  Lost high percentage 50-59, 18-29 age groups  Not gaining new customers

57. Insights (Part II)  Reasons for customer loss  Slow speed of service (not staff)  Appearance of building (exterior and interior)  Lower level of satisfaction by females

58. Why long wait time?  Examined hourly labor costs  Wait time due primarily to hourly staff  Sales/cost data examined  Compare to gross sales  Compare hour labor cost percent to gross sales  Compare hour labor cost percent to industry average

59. Hourly Labor Costs / Gross Sales Sales growth levels offFisherman’s Paradise opens (April 2012) 2010 2012 Hourly labor costs remain relatively flat

60. Hourly Labor Costs Percent / Sales Sales increased, but labor as % of sales declined! Wait time starts to increase Long wait time Now an alternative

61. Hourly Labor Costs Percent / Industry Average Labor as % of Sales below industry!

62. Insights (Part III)  Direct labor costs  Did not increase proportionately with sales increase  Impacted service level at peak capacity times  Resulted in longer wait times  Customers lost due to  Longer wait time  Exterior/interior appearance  Fisherman’s Paradise offered viable alternative  Regaining lost customers will be challenging

63. Recommendations

64.  Increase hourly labor personnel  Goal is to increase speed of service  Paint/remodel building exterior  New furniture/remodel interior  Television advertising  Awareness advertising to gain new customers  Promotion of price-off specials to attract former customers  New items to add  Free bread with meals  Healthier food choices  Lunch menu available for both meals