Eat2eat Case Study
Case Study – Eat2Eat.com
Assignment Questions
- Would you buy shares in Aggarwal’s company if you had an opportunity? Please justify.
I would not consider buying shares of Eat2Eat, as Aggarwal himself proclaimed “Eat2Eat simply did not have a big enough profile to make a public offering feasible or worthwhile.” If the owner of the business feels this way, I certainly am not going to go against that theory. And I personally do not purchase shares of small companies, as this goes against my financial advisor’s advice.
Would you lend him US $2 million? On what factors would your decision depend?
I would lend him the $2 million on several conditions. First, Eat2Eat’s online service is limited to the English language. This creates an issue for the user and company as it limits it market significantly. Eat2Eat needs to have a multi-language interface in order for me to think about investing. Secondly, the salaries of the new sales associates are too high. That figure needs to come down to $4K-$5K. The sales associates need to be fluent in the local language and it would be a bonus if they were bilingual. Aggarwal discussed that certain regions were not technologically advanced as others. The main focus needs to be on the regions that are technologically advanced as these will be the profitable areas with focus on the other areas in the long run.
- How do individuals decide to dine at upscale restaurants? What considerations enter their mind when reserving a table? There are many factors that can influence an individual to dine at upscale restaurants. First and foremost, what cuisine is offered, i.e. French, Italian, American Steakhouse? Is there a special occasion like an engagement, date night, business meeting…. or just because they have a lot of money and like to spend it? Is it the only restaurant worth going to in the area? Wine lists, ambiance, and online reviews (reputation of service from other diners) are also factors to consider.
What about reservations for corporate dinners and lunches?
Reservations for business dinners and lunches are a must. No one wants to sit around waiting on a table for a business meeting. For lunches, no question about it. Time is money and if you are wasting your time during the middle of the day you are basically telling your client you don’t care about their time and you don’t mind wasting their money.
How are these reservations different from individual reservations?
Business reservations are typically made further in advance and it would be best if a request for a quiet table was made to allow for ease of conversation.
Do you agree that there are different cultures for making reservations?
Yes. As individuals, we rarely make reservations. We are happy to wait, if it is a realistic amount of time (15, maybe 20 minutes tops) as we can go sit at the bar and enjoy a cocktail before dinner. We will not wait longer than that. IF we really want to eat at a restaurant that has a wait time longer than that, we will chose a time that is not as busy, perhaps 7:30pm or 8:00pm as these are more reasonable times in our region to go out.