On account of their revenues dipping down in last two quarter a leading chain of five star hotels, “loot lo luxury group” gave clear instructions to their CEO Bonobos that he would be sacked if the revenue figures do not improve in next Quarter.
The CEO then call the zonal managers and then formed a survey team to find out which food item is there which can be procured at minimum cost and people are willing to pay a fortune for it.
The managers zeroed down on popcorn sold in multiplexes, seeing people’s desperation to stand in long queues and their willingness to pay as much as Rs 600 for a large tub of multiplex popcorn. The calculated the profit margin was found to be as much as1500%.
The survey team forwarded the lead to senior management which then calculated the cost to profit of other popular dishes. They arrived on a conclusion that other popular dishes like butter chicken requires at least Rs 300 for preparation are priced at Rs 1200, which has only 400% profit margin and people find the price expensive as compared to 600 rupee popcorn.
So the conclusion was drawn on introducing multiplex popcorn. But when deciding on the name which would appear on the menu, it was decided that name “multiplex popcorn” should be there as then only people would pay, else they even find Rs 30 popcorn from a street vendor expensive.
Multiplex owners showed varied responses on the this decision by the five star hotel chain. Some rejoiced on the move as they anticipated that if people know their popcorn is selling in five stars hotels they would be able to increase the price by even by 100%. But some multiplex owners were skeptical as it my lead to losses as people may prefer buying them in five star hotels as compared to their multiplex, which might lead to their loss in prime source of revenue.
The nutrition experts also welcomed the move as it contains 0% trans fat. The local street vendor also rejoiced that at least he would be able to hike the price to Rs 12 from Rs 10 on release of the news.