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

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 customer’s 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.

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 customer’s 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, Renard first needs to understand the root - cause. Changing the tip percentage, looking for new customers without knowing the problem, or increasing menu prices may not address the real issue. Researching the reasons for the decline will help in formulating an appropriate solution.

Answer:

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