300 sales per day decreased by 10% after removing 3 prep items?

McKinsey Case: Digital & Vegan Restaurant Franchise
New answer on May 07, 2021
2 Answers
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Chris asked on May 06, 2021

It mentions 300 sales per day decreased by 10% after removing 3 prep items? But the calculation shows 300*(1-30%) ? Am I missing something?

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Ian
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replied on May 06, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi Chris,

While I haven't solved this case, I note the following text right above the suggested math of 300*(1-30%):

"We know that if we take out 1 prep item from the dish, we would decrease cost/revenue ratio by 5 percentage points, but the sales/day would also decrease by 10%"

It states sales per day decrease 10% for ONE, not three prep items!

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Clara
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replied on May 07, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

I believe there is a typo, since that 30% does not make sense to me.

Cheers,

Clara

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Ian gave the best answer

Ian

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