COYOTE LOCO

Evaluating Opportunities for Revenue Management

INTRODUCTION

• We are turning customers away during peak hours and operating half empty at other times as a result our margins are slim”.

• A 99-seat restaurant, near college town of 70000 inhabitants located on the scenic Finger Lakes in upstate New York

• Owners: Elaine Alexander & John Alexander• Building was bought by the duo along with 2 other

partners and was remodeled into a restaurant from a train station.

• Being operated since 1991

• Timings • Lunch: 11:00 am to 2:30 pm• Snacks : Untill 6:00pm• Dinner: through 11:pm

7 Ps of marketing mix of Coyote Loco

Product and PricingProduct : Mexican Food PriceAppetizers $2.9 to $6.99Entrees accompanied by salad $11.99 TO $14.99A wide variety of inexpensive dishes:Enchiladas and pollo verde

$6.99 TO $8.99

BARSignature “margaritas” $5

Beers $2 TO $4

An array of Wines

Place

• Located a mile away from Cornell University campus• Less than a mile away from “College Town”- a hub of

restaurants and favorite spot of youngsters

People

• 2- full time managers ,one manager always on duty• 60% employees- full time- mix of local residents and

students.• Front-of-the-house employees were mostly in 20’s to

attract people and project as enthusiastic to serve.• Staffing level varied from 3 to 10 in front of the house

and 3 to 6 in the kitchen depending on the demand• High turnover rate among the student employees.• Customers: a great mix of local people and students

Physical Evidence• More than 150 restaurants• Building “Crazy Coyote”:• A long wooden structure painted blue with aqua window frames

and decorated with yellow stars.• Restaurant area had wooden panelling and crème colored walls

on which hung paintings of Coyotes.• Bar area: light colored woodworkand blue ceiling with yellow

stars • Seating Arrangement: 68 seats in restaurant areas in combination

of 6 and 4-tops• Bar: 31 seats ; 2-tops-11 and 9 bar stool• In summers: an outdoor patio for additional 66 customers

Promotion

• Moderately priced Mexican food• “Happy Hour” on weekdays to promote

Bar: from 4:00 pm to 6:00 pm• But Alexander had tried to ensure that

restaurant did not become a “bar” destination.