Case

Sandwich place

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Problemdefinition

A local sandwich place has a shop located in a busy business district. The business district is filled with large head-offices of major corporations, a train station & a university. The sandwich place only sells one type of sandwich priced at $5.00. This is a cold-cut salmon sandwich with bread, smoked salmon, salad, cheese & sauce. The sandwiches are freshly made and only prepared after the order is placed, so no pre-packaged sandwiches. The shop has 3 employees who all service customers and it is a take-away without any seating.

Try to estimate the total revenue this shop can generate in one month. Costs are no factor here. Try to base your estimation on logical & reasonable assumptions that would be common for a sandwich place as described here.


Kommentare

Since this is a candidate-led case, the candidate should drive the case from start to finish.

  • The candidate should make his/her own assumptions whereas interviewer should check for business sense, logical assumptions, details and structure.
  • Solution below is a possible solution based on our assumptions.

Kurzlösung

Total estimated revenue per month is $13,500 based on our assumptions.


Detaillierte Lösung

Paragraphs highlighted in green indicate diagrams or tables that can be shared in the “Case exhibits” section.

Paragraphs highlighted in orange indicate hints for you how to guide the interviewee through the case.

Diagram 1 can be shared with candidate that provides a structure for the case.

I. Assumptions

We can make the following assumptions:

  • Sandwich is a cold-cut, so it shouldn't take more than 5 minutes to prepare each sandwich.
  • Shop follows office hours operating 9 hours from 10.00 AM to 07.00 PM.
  • Shop is closed during the weekend.
  • Between 10.00 AM & 12.00 PM the shop is preparing for the busy lunch-rush, so it doesn't sell anything in those 2 hours.
  • Assuming shop has three time-segments with a lunch-rush between 12.00-02.00 PM, light afternoon between 02.00-05.00 PM and evening rush between 05.00-07.00 PM.

II. Revenue

Revenues are generated within the three time-segments mentioned above only. You could argue that you need the time between 10AM and 12PM to prepare the sandwiches for the lunch-rush.

We can now calculate revenue:

  • 3 employees are able to prepare 36 sandwiches an hour.
  • During lunch hour, they sell 100% of production which is 36*2=72 sandwiches.
  • During the afternoon, they sell at 25% capacity which is (36*25%)*3=27 sandwiches.
  • During the evening, they sell at 50% capacity which is (36*50%)*2=36 sandwiches.
  • Total daily revenue is (72+27+36)*$5=$675.
  • Total monthly revenue is $675*20 days=$13,500.

Total estimated revenue is $13,500 per month.

Schwierige Fragen

  • How could this shop double his revenue in the same location?

Verwandte Consulting-Fragen

Hi there, I would start by asking some general questions to have a better feeling on the case: 1) Does our client provides this new service elsewhere? If not, does our client already has the cap... (mehr)

There is a MECE answer provided to this by Nuno if market sizing is part of a market entry case. I believe this question is straight at market sizing, so i will provide my thoughts to this. I as... (mehr)

Hi, hope it helps. I will address the problem this way: - N° of tourists daily * % of them visiting Tour Eiffel * 365 - N° of tourists daily = n° of incoming flights * % of tourists each flig... (mehr)

Bisher beste Antwort von 2 Antworten:
Ex-BCG Consultant / Interviewed 80+ applicants at BCG / Received offers from McK (US) and BCG (DE)

Hi Marilena, good question. I would always structure such a case completely top down. E.g. in your case, start with the population, then % of people needing glasses, % of those in reach of your... (mehr)

Hi there, Interesting case, let me give you my 2cents: Preliminary questions: - By market sizing are we focusing on volume or $? - How big is the Pop. in Country X? - Is there any speci... (mehr)

Verwandte BootCamp-Artikel

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

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Case-Exhibits