After research into where to place a new restaurant, Burger Billies, a small fast-food chain, plans to open a new store near a small college. The anticipated customer base is students attending the college. They learn that a major fast food chain will be opening a franchise within the college, 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 would be to abandon the proposed restaurant site. With a major fast food chain opening a franchise within the college, it is likely that the majority of students would choose to eat at the more well-known establishment. In addition, Burger Billies has already revised their estimate of sales to below the break-even point, indicating that it is not a financially viable option. It would be more prudent for Burger Billies to look for a different location with a potentially more profitable customer base.

After Research into Where to Place a New Restaurant, Burger