posttest renard manages an expensive restaurant that consistently makes money. however, the servers complain…

posttest renard manages an expensive restaurant that consistently makes money. however, the servers complain that their customers do not leave big tips very often. since renard agrees with his staff, he decides to add an automatic 20% tip to each customers bill. a month after this change, renard is surprised to find out that the number of customers coming to eat at the restaurant has sharply declined. which is the best next step renard can take to solve this problem? a) research the reasons why customers have stopped coming in. b) change the automatic tip to be only 15% on groups of 6 or more. c) look for more customers who like the experience of fine dining. d) increase the price of all food and drinks on the menu at the restaurant.

posttest renard manages an expensive restaurant that consistently makes money. however, the servers complain that their customers do not leave big tips very often. since renard agrees with his staff, he decides to add an automatic 20% tip to each customers bill. a month after this change, renard is surprised to find out that the number of customers coming to eat at the restaurant has sharply declined. which is the best next step renard can take to solve this problem? a) research the reasons why customers have stopped coming in. b) change the automatic tip to be only 15% on groups of 6 or more. c) look for more customers who like the experience of fine dining. d) increase the price of all food and drinks on the menu at the restaurant.

Answer

Brief Explanations:

To solve the problem of declining customers after adding an automatic tip, understanding the root - cause is crucial. Researching why customers have stopped coming (Option A) helps in making informed decisions. Changing the tip percentage for groups (Option B) is a premature solution without knowing the real reason. Looking for new customers (Option C) doesn't address why existing ones left. Increasing menu prices (Option D) may further drive customers away.

Answer:

A. Research the reasons why customers have stopped coming in.