PURE TaqueriaGroup 5:

Jenah Bell, Meredith Kilgore, Rebecca Kim, Shawnte Smothers, and Judith Valzania

All About PURE Taqueria:

• Owned by Chris and Michele Sedgwick • Opened in 2005• 6 Unique locations:• Alpharetta, Woodstock, Inman

Park, Roswell, Brookhaven and Duluth

• Trendy, modern, authentic Mexican Cuisine • Handmade Margarita recipes

Current Environment:

• 3.9/5.0 on Yelp.com • Hip, loud , gas station themed • Competitive Climate (Mexican Tequila Bar)

• Ceviche*- 3.6/5.0 on Yelp• El Porton*- 3.9/5.0 on Yelp• El Toro*- 4.1/5.0 on Yelp

• Demographics:• Single and married couples • 21-45• Income 75k-250k• Middle-upper class

*All restaurants are within a 5 mile radius

What’s the Problem?

Here’s the Opportunity:

• The restaurant is suffering from loss of revenue due to seasonality and ineffective marketing in the slower months.

• PURE Taqueria should look into seasonal menu items as well as more proactive marketing strategies for a higher (and wider) involvement in their social media platforms.

PURE’s Strength & Weaknesses:

• Strength’s:• Convenient locations • Authentic and appetizing

Mexican food • Affordable • Handmade specialty cocktails • Friendly and attractive wait staff • Open for brunch, lunch, and

dinner • Use local and fresh ingredients • Authentic décor • Patio for outside dining

• Weaknesses: • Limited offerings on menu• Cannot appeal to gluten or

vegetarian diets • Mixed reviews on YELP • Weak social media presence • Guests refer to the

restaurant as “average” • Small restaurant space • Rooftop bar is only available

at limited locations

PURE’s Threats & Opportunities:

• Threats: • Their service model can be easily copied,

making it easy to lose their edge. • When the winter season comes, they

have proven to not be very successful at maintaining their sales, which puts their reliability at risk.

• Risk is not setting a strong identity in the restaurant market and losing value proposition.

• Having the risk of not portraying the desired image through social media

• Regular customers not appreciating the potential changes and deciding on going to a different establishment

• Not making necessary changes in a timely manner

• Opportunities: • Expand their menu to attract new

customers• Cater to special dietary restrictions

their customers may have • Invest time and effort in establishing a

strong social media presence• Establish a loyalty program for their

regular customers • They have the opportunity to establish

their brand and image as more modern/trendy Mexican restaurant, with a more laid back and contemporary vibe.

• Networking and community relations • Charity support

Research Questions: 1. Does PURE Taqueria menu prices attract a

specific income level?2. Determine which social media platform to

invest in order to advertise our business. 3. What are the differences between our summer

target market and our winter target market? 4. Will a seasonal menu attract more clientele? 5. Does sales revenue differ (in reference to

winter months) across restaurant locations?

General Hypotheses:

• Pure Taqueria’s annual sales are suffering due to seasonality, meaning that during the colder months (November - February) sales drop drastically compared to the summer months (May– July).

Drop in Sales (Colder Months)

Increase in Sales (Summer Months)

Null & Alternative Hypotheses: 1. Price and SeasonsNull (Ho): Seasons have no impact on price changes.Alternate (H1): Seasonal changes have an impact on pricing.

2. Seasons and IncomeNull (Ho): Seasonal changes have no impact on income level of potential target market.Alternate (H1): Seasonal changes have an impact on income level of potential target market.

3. Price and IncomeNull (Ho): Price has no effect on the income level of potential target market.Alternate (H1): Price affects the income level of potential target market.

4. Social Media Presence and Time of Year Null (Ho): Time of year has no impact on the frequency of social media impressions Alternate (H1): Time of year has an effect on the frequency of social media impression

5. Location and SalesNull (Ho): Restaurant’s location has no effect on individual sales.Alternate (H1): Restaurant’s location has an effect on individual sales.

Data Methods:

For Data Collection Methods, we used 4 types:

Secondary DataObservational Data

Focus GroupQuestionnaire

Observational Data

Average Temp.

High 70’sLow 50’s

White

Hispanic

Black

Caucasia

n0%

10%

20%

30%

40%

50%

60%

70%

80%

90%Ethnicity

Ethnicity

Male Female0%

10%

20%

30%

40%

50%

60%

70%

Gender

Gender

Married Single0%

10%

20%

30%

40%

50%

60%

70%

Marital Status

Marital Status

Families of 4

Single$0

$10

$20

$30

$40

$50

$60

$70

$80

Spending Pattern

Spending Pattern

Married Single0

10

20

30

40

50

60

70

80

Table Turnover

(min)

Table Turnover (min)

Focus Group Respondent Profile:

Number of respondents per focus group

8 people

Duration of Focus Group 1 hour Age Range 20-45Characteristics • Majority undergraduate/graduate students

• Minority have had industry experience• Outgoing and answered questions quickly

Group Dynamic Supportive of each other’s opinions but were open to sharing their own thoughts. Usually agreed with each other

Focus Group Response

Top Questions Top Response Do you have different restaurant preferences for each seasons?

1. Mexican is more of a summer food and southern food is more for the winter

2. No, but they do tend to stay indoors during colder seasons.

Think of your favorite restaurant, how did you hear about it?

1. Friends and family2. Yelp, looked the menu up online

Do you follow your favorite restaurant on social media?

1. Yes, most of them found their restaurants on social media i.e. Instagram and Facebook

2. No, they don’t know if the restaurant has a social media page

Do promotions and sales offered on their social media prompt you to go eat at the restaurant?

1. Yes, exclusive discounts and sales makes you go out to the restaurant but it can’t be too often. If it is going to be

What social media do you use the most often? 1. Instagram2. Facebook3. Snap Chat

Do you find that having a seasonal menu is more attractive for a restaurant, if so why?

1. Yes, for example Starbucks Pumpkin Spice Latte. Having select menu with a limited time makes them go out to get it before it’s gone.

Focus Group Findings:Question FindingsDo you have different restaurant preferences for each seasons?

There are no special preferences for each season but they associate Mexican food with summer.

Think of your favorite restaurant, how did you hear about it?

If it’s not from word of mouth they look for restaurants to try out on their own. Meaning they search for big online presence and social media presence, especially Instagram to look at the pictures and comments.

Do you follow your favorite restaurant on social media?

They often had hard times finding information about a restaurant they heard of to get the phone number or open hours, but following them on social media made it easier to get information quick. Some of them didn’t know if the restaurant had a page for Instagram or Facebook

Do promotions and sales offered on their social media prompt you to go eat at the restaurant?

Having too many sales can make them feel that there will always be a sale and would not go to that restaurant as often. Having limited time menu options or consistent day of the week promotions really attracts them to the restaurants (Moe Mondays)

What social media do you use the most often? Instagram was the most popular because they have pictures of each menu item, ordering before knowing what it looks like is the hardest for them

Do you find that having a seasonal menu is more attractive for a restaurant, if so why?

Seasonal menus makes them wait which makes them want to go even more, having a different menu each season makes it more fun for them to go to the restaurant to and try different menu options. Some of them only preferred regular menu items but they were people who didn’t like to try new things

Questionnaire

We had a quick and easy online and paper questionnaire with eleven questions based on Pure Taqueria

Data Analysis Techniques: Correlation

Income vs. Season Income vs. Price

Annual income Time of YearAnnual income 1Time of Year -0.081129275 1

Annual income PriceAnnual income 1Price -0.242697911 1

Because the Correlation coefficient is negative we can determine that there is a negative relation between each variable.

https://www.currentresults.com/Weather/Georgia/Places/atlanta-temperatures-by-month-average.php

Data Analysis Techniques: Regression

SUMMARY OUTPUT Regression Analysis Weather vs. Sales

Regression Statistics Sales=67.49+0.04*TempMultiple R 0.010973391R Square 0.000120415Adjusted R Square -0.017118888Standard Error 44.11676096Observations 60

ANOVAdf SS MS F Significance F

Regression 1 13.59468687 13.59468687 0.006984929 0.933681432Residual 58 112884.7386 1946.288597Total 59 112898.3333

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 67.49418039 32.48001723 2.078021693 0.042143015 2.478362005 132.5099988 2.478362005 132.5099988Weather 0.037160875 0.444636335 0.083575885 0.933681432 -0.85287545 0.9271972 -0.85287545 0.9271972

If the weather doesn’t change then sales for the company will be 67.49 (x100). Every increase in temperature will increase store sales by 0.04(x100)

Data Analysis Techniques: Paired t-testt-Test: Paired Two Sample for Means

Social Media Presence Time of YearMean 3.24 2.82Variance 2.920816327 2.55877551Observations 50 50Pearson Correlation 0.501356201Hypothesized Mean Difference 0df 49t Stat 1.794685851P(T<=t) one-tail 0.039436778t Critical one-tail 1.676550893P(T<=t) two-tail 0.078873556t Critical two-tail 2.009575237

Because the two-tail is greater than 0.05 we accept the alternative hypothesis. Right Tail-The sample mean of Social Media Presence is greater than Time of Year and the one-tail test is less than 0.05 so we reject the Null.Left Tail- The sample mean of Time is less than Social Media and the one-tail is less than 0.05 so we reject the null.

Data Analysis Techniques: F-Test Anova: Single Factor

SUMMARYGroups Count Sum Average Variance

Sales Duluth 60 4210 70.16666667 1913.531073Sales Roswell 37 2275 61.48648649 1974.812312Sales Inman Park 48 3905 81.35416667 1669.935727

ANOVASource of Variation SS df MS F P-value F crit

Between Groups 8474.202877 2 4237.101439 2.292257372 0.104765382 3.059830689Within Groups 262478.5557 142 1848.440533

Total 270952.7586 144

The P-Value is greater than 0.05 so accept the alternative that at least one mean is different than the others.

Our Recommendations:

#1:Social Media involvement. Making sure Pure creates a strong presence in popular social media platforms to maintain a stronger relationship with customers and build loyalty. It will also improve customer outreach for seasonal discounts, specials, and events.

#2:Networking and Community Relations. Pure will hold events in their local areas, festivals, and communities, this will help build a stronger brand in image within their locations.

#3:Implementing new discounts/specials/events specifically for the winter months. Focusing on improving customer interest during the winter months when sales tend to drop. Examples: College night with half off appetizers to attract/maintain younger crowds, Kids eat free 2 nights a month to attract/maintain families.

Work Cited:

• Donathan, Bobby. "PURE Taqueria | Authentic Mexican Taqueria | Atlanta - Alpharetta - Woodstock,GA & Matthews, NC | Be Sure with Pure!" PURE Taqueria | Authentic Mexican Taqueria | Atlanta - Alpharetta - Woodstock,GA & Matthews, NC | Be Sure with Pure! Word Press, n.d. Web. 18 Apr. 2016.

• Rubbin, Andrea. "Pure Taqueria- Roswell." Yelp.com. Yelp, 8 May 2006. Web. 18 Apr. 2016

• Smothers, Shawnte V. "PURE Taqueria Online Survey." Qualtrics. Georgia State University, 11 Apr. 2016. Web. 18 Apr. 2016. https://gsu.qualtrics.com/jfe/form/SV_9t93Ev70JbhO549