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Analysis of Factors Influencing Weekly Sales in Coffee House Chains: A Case Study for Expansion to Tallahassee

This case study analyzes factors affecting sales in coffee house chains, specifically examining the potential for expansion to Tallahassee.

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    Analysis of Factors Influencing Weekly Sales in Coffee House Chains: A Case Study for Expansion to Tallahassee Bob Roaster, vice president of sales at Peoria’s Best Coffee Houses, is considering expanding to Tallahassee and needs to determine optimal store size and expected weekly sales. Using the provided data, analyze the descriptive statistics, correlation, and regression results to assess the impact of store size, proximity to a college, and drive - thru availability on weekly sales. Based on your analysis, provide recommendations for store size, location, and amenities for future openings. Word Count Requirement : 1,500 – 2,000 words

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    Introduction Bob Roaster, the vice president for sales at Peoria’s Best Coffee Houses (located in suburban Prescott Florida) is considering expanding this company’s chain of coffee houses to Tallahassee. But before he can commit to opening one or two stores in the state capital, he needs to figure out what size stores he might open and how much could they make in revenue per week. He wanted to ask his friend Marvin Bloomy at PC (Prescott College) for help, but old Marvin just left on a 4 - week trip to Alaska to see the “ sights and to commune with bears ” and is out of touch.

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    Descriptive Statistics Weekly Sales Store Size (Sq. Ft.) College Nearby = YES Drive Thru = YES Mean 4492.570338 925.8113208 0.22641509 0.132075472 Standard Error 64.29826642 16.74386694 0.05803701 0.0469516 Median 4591.282849 939 0 0 Mode #N/A 911 0 0 Standard Deviation 468.0984452 121.8971913 0.42251579 0.341812806 Sample Variance 219116.1544 14858.92525 0.17851959 0.116835994 Kurtosis 0.391582439 - 0.400069452 - 0.19770445 3.121519912 Skewness - 0.582855357 - 0.109603904 1.34581349 2.237206651 Range 2132.259654 545 1 1 Minimum 3250.048527 673 0 0 Maximum 5382.308181 1218 1 1 Sum 238106.2279 49068 12 7 Count 53 53 53 53 It is observed from the rows of mean and median that on an average the weekly sales and store size for given set of data points is 4492.57 and 925.7113 respectively. While half of the data values are above 4591.2829 units of weekly sales and other half is below this value. And for store size, cut point (regarded as median) is 939. In both the cases, median is greater than mean. From the row of Skewness it is observed that weekly sales and store size is negatively skewed. Kurtosis is the measure for flatness of the distribution. Here, store size has a n egative value of kurt osis implying a slightly flat distribution . And weekly sales have a positive value of kurtosis implying distribution with slight peak.

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    Histogram The class interval for Weekly Sales and th e corresponding histogram is shown below. Weekly Sales Bin Frequency 3000 0 3500 2 4000 5 4500 19 5000 19 5500 8 6000 0 More 0 The above histogram is slightly skewed to the left . For a negatively skewed distribution , mean < median < mode and t he same is observed from the descriptive statistics above. This implies that t he number of small weekly sales is very less. 0 5 10 15 20 Frequency Bin Histogram Frequency

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