After research into where to place a new restaurant, Burger Billies, a small fast food chain, plans to open a new store near a TAFE. The anticipated customer base is students attending the TAFE. They learn that a major fast food chain will be opening a franchise within the TAFE, which leads the owners of Burger Billies to revise their estimate of sales to one below the break-even point. Which of the following is most likely the best real option for Burger Billies to take with regard to the proposed restaurant site?

Question

Quizplus · Accepted Answer

The best option for Burger Billies is to abandon the proposed restaurant site near the TAFE because the presence of a major fast food chain franchise will likely result in lower-than-expected sales, and the estimated sales have already fallen below the break-even point. Therefore, opening a store at this site would not be profitable for Burger Billies.

After Research into Where to Place a New Restaurant, Burger