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Suburban stores for a Singapore cafe chain
The prompt
A cafe chain has 20 stores in central Singapore and is considering 10 stores in suburban housing estates. Each suburban store is expected to bring in SGD 600,000 of revenue a year at a 15 percent store-level cash margin, and costs SGD 500,000 to open. The table below compares a central store today, the suburban forecast, and an early estimate for a smaller kiosk. Should it go ahead with the suburban plan?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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