Estimate the yearly revenue of Cafeteria & Co.

Question

Accepted Answer

Estimating the yearly revenue of Cafeteria & Co.

Analyze the average number of customers per day and multiply it by the average amount spent per customer
Consider the number of operating days in a year
Take into account any special events or promotions that may impact revenue
Review historical financial data and trends
Consider the competitive landscape and market conditions

Accepted Answer

[Please note that I stands for Interviewer and C stands for Candidate]

I: Abhishek, you have stayed in Gurgaon, right? Let us calculate the yearly revenue of a party place in Cyber Hub of your choice.

C: I do not know of any place in Cyber Hub, but I can probably do this calculation for a cafe in Hudson lane near my college in Delhi.

I: Surely.

C: So, I would do this calculation for Cafeteria & Co. The revenue can be calculated using the formula: Avg. size of a group * Avg. spend per group* Seating capacity* occupancy* No. of days.

I: Why have you taken a group rather than an individual?

C: Drawing on my own experience, my hypothesis is that people always come to this café in groups.

I: Fair enough.

C: Moving ahead, occupancy would be low during summer and winter breaks and exam time.

I: That's fine. Let us calculate revenue for a single Sunday.

C: (I started assigning numbers to all the factors while explaining them also talking about why occupancy would be low on a Sunday.)

I: Let us go by individuals rather than groups.

C: All right. I would also like to incorporate the time for which the café runs and then divide it by the average time a person spends in the café to arrive at the number of customers served.

Estimate the yearly revenue of Cafeteria & Co.

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Estimate the yearly revenue of Cafeteria &amp; Co.

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Estimate the yearly revenue of Cafeteria & Co.