A manager believed that Chiboodle should add salads to its menu based on a current survey. The project was called "Project Crunch." This case study aimed to present to CEO recommendations based on the revenue forecast, if Project Crunch were implemented.

1. Chiboodle Inc. Case Study
ShuTsao

2. Chiboodle sales grew 9.56% in 2015; Growth was
driven primarily by product segment Drinks

3. $1,724.00 $1,710.46
$638.73
$967.76
$349.11
$360.10
$1,396.44
$1,462.90
Sales by Product Category
Burritos Drinks Kids meau Tacos
2014 2015

4. Most of the growth in 2015 came from Old Stores
US$4,108,269,000 US$4,136,788,911
US$0 US$364,434,089
4,108,268,999.95 4,501,223,000.00
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015
Sales by Old vs New Stores
Old stores New stores opened in 2015 Total

5. Can’t continue to rely on new stores for growth since
new stores growth is declining
0
50
100
150
200
250
300
Number of new stores opened by year
predicted

6. “Business as Usual” Forecast: Revenue will grow to
$489M by 2019
Year 2015 2016 2017 2018 2019
Number of stores 2443 2596 2697 2769 2831
Sales per store (total) $ 1,842,498.16 $ 1,874,895.34 $ 1,904,107.69 $ 1,934,841.51 $ 1,967,164.76
Burritos (sales per store) $ 700,149.30 $ 694,652.22 $ 689,198.30 $ 683,787.20 $ 678,418.59
Tacos (sales per store) $ 598,811.90 $ 627,311.12 $ 657,166.70 $ 688,443.19 $ 721,208.23
Kids menu (sales per
store)
$ 147,399.85 $ 152,041.25 $ 152,041.25 $ 152,041.25 $ 152,041.25
Drinks (sales per store) $ 396,137.10 $ 400,890.75 $ 405,701.44 $ 410,569.86 $ 415,496.69
Chiboodle total sales $ 4,501,223,000.00 $ 4,595,748,683.00 $ 4,692,259,405.34 $ 4,790,796,852.86 $ 4,891,403,586.77
Sales growth %
(year on year)
2.1% 2.1% 2.1% 2.1% 2.1%

7. Project Crunch Sales Forecast:
Key Assumptions / Methodology
• Assumptions
• Methodology
• Forecast sales per store = Current sales per store * growth rate
• Forecast sales = Forecast number of stores * Forecast sales per store
Variable AssumedValue Rationale / Source
Confidence in
Assumption
Prices of salads $ 8.44 Average of competitors High
% of customers will
buy additional salad
23% Survey High

8. Project Crunch Forecast: With Project Crunch, we
forecast revenue to grow to $5,416M by 2019
Year 2015 2016 2017 2018 2019
Number of stores 2443 2596 2697 2769 2831
Sales per store (total) $ 1.842M $ 1.875M $ 1.849M $ 1.880M $ 1.913M
Burritos (sales per
store)
$ 700K $ 639K $ 583K $ 579K $ 574K
Tacos (sales per store) $ 599K $ 627K $ 657K $ 688K $ 721K
Kids menu
(sales per store)
$ 147K $ 152K $ 152K $ 152K $ 152K
Drinks (sales per store) $ 396K $ 401K $ 406K $ 411K $ 415K
Salads (sales per store) $ $ 56K $ 51K $ 50K $ 50K
Chiboodle total sales $ 4,501 M $ 4,867 M $ 4,987 M $ 5,206 M $ 5,416 M
Sales growth %
(year on year)
2.1% 8.1% 2.5% 4.4% 4.0%

9. Scenario Analysis: If we price salads at $8.44 & $10.38,
sales will grow to $5.4B & $6.5B by 2019, respectively
$4.50
$4.70
$4.90
$5.10
$5.30
$5.50
$5.70
$5.90
$6.10
$6.30
$6.50
2015 2016 2017 2018 2019
Billions
2015-2019 Revenue forecast, for different scenarios
Business as usual Project Crunch--Scenario 1 (Price salads mid-range)
Project Crunch--Scenario 2 (Price salads top-range)