Guesstimate — Estimate the revenue of McDonald’s outlet from burger sale?
Welcome to Day 13/30 of Mastering Guesstimates
Q. Estimate the revenue of McDonald’s outlet from burger sale?
Clarifying Questions:
- Single outlet or multiple?
- Do we need to calculate the revenue for month, day, year. If day then is it weekend or weekday?
- Do we need to take into account online deliveries/dine-in/takeaways/drive-through?
- What is the location of the outlet, is it in residential or commercial area?
- Do we need to consider only burgers or burger selling with meals as well?
A. Consider single outlet and its location as any of the two, calculate it for the day and assume uniform distribution across all days and take into account dine-in and takeaways. Calculate the number only for burgers.
Assumptions:
- McDonald's outlet is operational for around 12 hours (10 AM to 10 PM) each day.
- McDonald's outlet has around 50 tables on an average.
Approach:
For Dine-in:
Consider that a person visiting McDonald's for dine-in takes around 10 minutes from ordering to having his meal and leaving the outlet, that gives us the number of customers visiting per hour, i.e. (60 Minutes/Time Taken by each customer) = 60/10 = 6 Customers Per Hour
Total Dine-in Customers visiting in a day = 2550
For Takeaways:
Consider that a person visiting McDonald's for takeaway takes around 5 minutes from ordering and receiving his meal, and then leaving the outlet, that gives us the number of customers visiting per hour, i.e. (60 Minutes/Time Taken by each customer) = 60/5 = 12 Customers Per Hour
Total Takeaway Customers visiting in a day = 100
Final Calculation
Total Customer visiting in a day = 2550 + 100 = 2650
Considering that on an average, a customer orders 2 burgers (get this verified from the interviewer), then number of burgers sold on a particular day = 2650 x 2 = 5300 Burgers
Let's assume that on an average, a price of a burger is Rs. 100, then revenue = 5300 x 100 = Rs. 530000 i.e. Rs. 5.3 Lacs
Therefore, the revenue of single McDonald’s outlet from burger sale in a day is Rs. 5.3 Lacs
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