Business Case Studies & Business Publications

The Bottom Line at CC's Gourmet Kitchen

Fairchild, Gregory...

Case

The Bottom Line at CC's Gourmet Kitchen

Fairchild, Gregory B.; Johnson, Marc

ENT-0185 | Published February 8, 2012 | 5 pages Case

Collection: Darden School of Business

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Carl Coleman fulfilled his retirement dream by opening a restaurant in Bristol, Virginia, called CC’s Gourmet Kitchen. Coleman had a passion for cooking and was excited for the success of his restaurant. His business model was a small menu with high-end, locally sourced ingredients, low prices, and a casual atmosphere. The restaurant was steadily busy during the week and full on the weekends, and with about 200 patrons per night, the business could be deemed successful, all with little advertising spend. Despite all the success and capacity routinely being reached, the restaurant was still not profitable, especially considering the recent $57,000 up-front equipment investment. Coleman needed to do a deep dive on his revenues and costs to make changes and make the restaurant more profitable or he wouldn’t be able to sustain the business much longer. This case is ideal for use in courses that explore entrepreneurship, the restaurant industry, margins, profitability, and pricing.