DAT 565 UP Week 2 Pastas R US

Pasta’s R Us, Inc. is a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. Since its inception, the business development team has favored opening new restaurants in areas (within a 3-mile radius) that satisfy the following demographic conditions:

Median age between 25 – 45 years old

Household median income above the national average

At least 15% college-educated adult population

Last year, the marketing department rolled out a Loyalty Card strategy to increase sales. Under this program, customers present their Loyalty Card when paying for their orders and receive free food after making ten purchases.

The company has collected data from its 74 restaurants to track important variables such as average sales per customer, year-on-year sales growth, sales per sqft, Loyalty Card usage as a percentage of sales, etc. A key metric of financial performance in the restaurant industry is annual sales per sqft. For example, if a 1200 sqft restaurant recorded $2 million in sales last year, it sold $2,000,000/1200 = $1,667 per sqft.

Executive management wants to know whether they can improve their current expansion criteria. In addition, they want to evaluate the effectiveness of the Loyalty Card marketing strategy and identify feasible, actionable opportunities for improvement. As a member of the analytics department, you are responsible for conducting a thorough statistical analysis of the company’s available database to answer executive management’s questions.

  • Use CLASS Pasta’s R Us Data.xlsx


  • Use the APA formatted Week 2 Signature Assignment Statistical Report.docx (below) as it is APA formatted.

Write about a 750-word statistical report that includes the three sections (a) scope and statistics; (b) analysis; (c) recommendations and implementation

  • Section 1 – Scope and Descriptive Statistics

State the report’s objective.

Discuss the nature of the current database. What      variables were analyzed?

Summarize your descriptive statistics findings from      Excel. Use a table and insert appropriate graphs.

Section 2 – Analysis 

Use Excel, Insert/Scatter plots with a Trendline that displays the regression equation and R2 for each of the following pairs of variables. Include x- and y-axis labels. 

Bach Deg% versus Sales/Sqft

Med Income versus Sales/Sqft

Med Age versus Sales/Sqft

Loyalty Card% versus Sales Growth%

In your report, for each scatter plot, designate the type of relationship observed (increasing/positive, decreasing/negative, or no relationship) and determine what you can conclude from these relationships.

Section 3: Recommendations and Implementation

Based on your findings above, assess which expansion      criteria seem to be more effective. Could any expansion criterion be      changed or eliminated? If so, which one and why?

Based on your findings above, does it appear as if the      Loyalty Card has a positive correlation with sales growth? Would you      recommend changing this marketing strategy?

Based on your previous findings, recommend a marketing      positioning that targets a specific demographic. (Hint: Are younger people      patronizing the restaurants more than older people?)

Indicate what information should be collected to track      and evaluate the effectiveness of your recommendations at a period after      implementation. How can this data be collected? (Hint: Would you use      survey/samples or census?)

Cite references with in-text citations and references to support your assignment.

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