Cafe Simulation Demo - Phase One

Welcome to the demonstration version of the new ABW Café simulation. You are welcome to play with this Phase One introduction, with product lines limited to sandwiches and cold drinks. The sandwich component costs have already been determined for you as has the overhead cost for this start up one person business. Your challenge is, having regard to the sandwich cost and overhead.

  • What price will you charge for sandwiches?
  • How many sandwiches will you make and sell to achieve breakeven?

You might start by scrolling down the page and look at each section including the graphs. The black line graph in the Finance section is the break even line which shows a red band below the line and indicates that you are in a loss making position. To get into the black with a black band above that line you need to determine what price you will charge for sandwiches and how many you will sell. Put the number you estimate in the ‘Customer demand units’ box (Note: staff takes 3 minutes to make each sandwich so as you increase the number of sandwiches take stock of how many staff are required as this will have an impact on wages?

As you make each variation click the ‘Recalc’ button to see the impact on the business, expressed numerically and graphically on a bar chart and six pie charts. Once you’ve achieved breakeven by selling enough sandwiches at a sufficient price take a note of that price then make adjustments to determine:

  • What profit margin is appropriate, 10%, 20%, 30% or more and what is the adjusted price to achieve this profit margin?
Now move on to cold drinks (Note that Gross Capital increases as you add additional equipment at each stage)
  • What price will you charge for cold drinks and how many will you insert in the ‘Customer demand units box. To get started you might estimate the number of cold drinks in a ratio of 1:1 to sandwiches then 1:.75,  then1:.5
  • What is the impact on breakeven, profitability?

Then you might assess the impact of varying wages, hours and days worked and rent.

btn-cnt-reg-syThis demo version is just a taste of the full simulation which includes many additional features; including an expanded Phase One and Two both supported by a 100 page student manual and comprehensive coordinators kit.
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Phase Two

In Phase Two of the Café Simulation we Have reproduced the Input form to illustrate the range of decisions available in this competitive phase, however this is a read only version for illustration purposes. To get a playable version of the Phase Two (Competition) version you will need to be registered to participate.

Phase Two