Question 1 – 30 pts.

We have spent a good amount of time this term examining customer types and target markets as well as selecting the appropriate location, design and layout for your beverage operation. Select a specific customer type and target market (discuss at a minimum age, income and gender) for a hypothetical beverage operation. Based on your customer type and target market, discuss the criteria for selecting a location, a layout and appropriate design elements that will appeal to and attract this customer.

Question 2 – 30 pts.

Policies and procedures that favor operational ease and customer satisfaction are often at odds with policies that favor tight operational controls. In a previous article the topic of measured pours highlights an excellent example of this paradox.

Discuss at least three operational elements where tight control can effect operational ease and customer satisfaction or vice versa. Create policies that attempt to balance these two often contradictory concerns. (You can use free pouring vs. measured pouring if you like).

Question 3 – 10 pts.

Discuss some of the difficulties associated with hiring friends and family to work in your beverage operation. Do you think it’s a good idea anyway? Why or why not? Support your opinion.

Question 4 – 10 pts.

Tequila, vodka, rum and cordials have shown excellent growth in recent years. What do they have in common? Why have they grown?

Question 5 – 10 pts.

Grey Goose Vodka costs $45.00 for a one liter bottle. Your shot size is 1.5 ounces. You sell your spirits at a Cost of Goods Sold Percentage of exactly 25%. Calculate cost per ounce, cost per shot, selling price, and contribution margin.

Mayo Family Winery Zinfandel costs $22.00 for a 750 ml bottle. Your wines by the glass are 6 ounces and you will get approximately 4 glasses from a bottle. You sell your wines at a Cost of Goods Sold Percentage of exactly 30%. Calculate cost per ounce, cost per 6 oz. glass, selling price and contribution margin.

Question 6 – 10 pts.

List five procedural steps you can institute as a manager to make employee theft less likely in your beverage operation.