A premium café chain has 80 outlets. Average ticket size rose from ₹310 to ₹380 over two years after a menu upgrade and price rise. Footfall per outlet fell 18% in the same period. Outlets in office districts lost the most footfall; outlets in residential malls grew slightly. Loyalty-app data shows weekday morning visits fell sharply while weekend afternoon visits held up. A delivery-first competitor sells a comparable coffee for ₹180.
Work out what is really happening, then recommend changes to the mix. Be specific about which levers to pull and which to leave alone, and check the effect on revenue per outlet.
100 points, 60% to pass.
Revenue per outlet: footfall down 18%, ticket up about 23% — revenue roughly flat, so the headline is not a collapse but a change in who comes. The chain has priced out the high-frequency weekday office customer (whose alternative is a ₹180 delivery coffee) while keeping the leisure customer. Two coherent options: defend the weekday occasion with a value morning offer, grab-and-go format or subscription in office-district outlets; or accept the premium leisure position and rebalance the footprint towards residential and mall locations. The mix must be consistent: a morning value offer inside a premium dine-in space needs a different format. Strong answers pick one and quantify it.