BrewRight: Coffee Chain Quarterly Review
Directions
BrewRight is a growing coffee chain with four locations across Metro City. The company's Chief Financial Officer has requested a quarterly performance review of all stores to determine which locations warrant additional investment and whether any underperforming stores need intervention.
All four BrewRight locations operate 30 days per month with the same menu, pricing, and operating hours. Each store employs a team of baristas and one store manager. The company's internal benchmark is to maintain a profit margin of at least 25% at every location. Profit margin is calculated as monthly profit divided by monthly revenue, expressed as a percentage.
Monthly financial data and average daily customer traffic for each store are provided in the exhibits below. Monthly profit for each store equals monthly revenue minus monthly operating cost. Operating costs include rent, wages, supplies, and utilities.
The management team is particularly interested in understanding which store drives the most profit in absolute terms, how customer traffic relates to revenue, and whether the smallest location still meets the company's profitability target.
Exhibit 1: Monthly Financial Summary by Store
| Monthly Revenue ($) | Monthly Operating Cost ($) | |
|---|---|---|
| Downtown | 48,000 | 33,000 |
| Midtown | 32,000 | 24,000 |
| Airport | 60,000 | 42,000 |
| Suburbs | 20,000 | 15,000 |
Exhibit 2: Average Daily Customer Visits
Average Daily Customer Visits by Store
Questions
What is the total monthly revenue across all four BrewRight stores?
Which store generates the highest monthly profit (revenue minus operating cost)?
How many total customers visit all four stores on an average day?
What is the average revenue per customer per day at the Airport store?
What is the profit margin of the Suburbs store (profit ÷ revenue × 100)?