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TO:
Guido Caputi
FROM:
Meredith Weaver
SUBJECT:
Parking Problem
The following report will outline the different alternatives we have previously discussed
regarding the parking problem we are currently experiencing at Caputis Italian
Restaurant. All of the alternatives have been considered in regards to the restaurant and
the customers. The cost, ease, and convenience have all been evaluated and and
recommendation has been placed based off of the findings.
Problem: Availability of Parking
The high level of customer traffic that the restaurant has begun to attract is a very good
advancement as far as profits go, but our current parking lot is not large enough to
accommodate the increase in traffic. We are unable to have all of the customers park in
the current parking lot, because this lot accommodates only twenty vehicles. Many
customers are beginning to give up on the restaurant and go elsewhere to eat, cutting into
our business, and driving away our regular, loyal customers. We cannot add onto the
current parking lot because of an adjacent building, and relocation is another option
which has been ruled out.
Solutions and Alternatives: Different Parking Options
We currently have three different parking options which are available for our company to
implement. The first is a valet service, which would allow customers to drive their car to
the restaurant and have a valet drive and park their car in a close lot. The second service
we have as an option is a shuttle service. Customers would have this service free of
charge, and it would run between the restaurant and the local parking garage. The third
option is to advertise the close parking spaces with a billboard close to the restaurant.
This would allow customers to become more aware of the parking spots close to the
restaurant.
Choosing a Solution
There are four different criteria which I have established related to choosing the solution
for our problem. Each of the four alternatives will be ranked on a scale of one through
three, and then multiplied by the weight. The criteria are as follows:
1. The cost to Caputis This will weigh how much the different solutions cost
the restaurant individually.
2. The cost for the customer This will show how much each alternative costs
our customers.
3. Implementation of Solution This will show us how easily the solution will
be implemented after being chosen.
4. Customer Convenience This will demonstrate how convenient the solution
will be for our customers.
Discussion: Evaluation of Alternatives
Valet Service:
The valet service has been offered to our company free of charge. However, there
is a seven-dollar rate per customer car, which makes this the most unattractive solution
for the customer cost-wise. In terms of convenience, this is very good for the customer,
because it requires them to do almost nothing. This requires little work in regards to
implementation, but does require a small amount of administrative work.
Shuttle Service:
The shuttle service will cost about $1,500 to buy a van, and around $200 per week
to pay an employee to shuttle the customers back and forth. It will also require regular
maintenance, which is another added cost to running the shuttle service. In addition to
this, it is very inconvenient for us to buy and maintain the shuttle service. This option
does, however, cost the customer nothing, and is fairly convenient for them as well.
Advertisement:
The advertisement for additional parking would cost the restaurant around $200.
It is very easy to implement, because we do not have to do a large amount of work other
than pay someone to put up the sign. It also costs our customers nothing, but is not
convenient for them because it does nothing to change the current parking situation,
except inform those who did not previously know.
The following table takes all of the important categories for each of the alternatives, and
places them into a table, with three being the most attractive option, and one being the
least:
3
1
Implementation
of Solution
2
1
Customer
Convenience
3
2
Cost to Caputis
Valet
Shuttle
Advertisemen
t
Valet
Shuttle
Advertisemen
t
Cost to
Caputis
30
10
Implementatio
n of Solution
8
4
Customer
Convenience
24
16
20
18
12
Totals
68
54
58