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Compact case
Case from journal
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Reference no. NAC1902
Authors: Steven Dawson
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 1999
Length: 5 pages
Data source: Field research

Abstract

Bernard Horowitz, Owner and Operator of Bernard's New York Deli, had recently moved to a new, larger location. Business during the first three months had been good. To take full advantage of the new location, Bernard wanted to expand seating by 50 customers and buy new equipment. This would cost $30,000, but his bank would not lend him additional funds. Recalling the gift certificates he had used eleven years earlier, he decided to use discount certificates called deli-bucks. Customers could buy them for $8 each and after 90 days redeem them for $10 worth of food. If it all worked as planned, Bernard would have the $30,000, the expansion would take place, he'd have repeat customers coming in, and maybe even favorable word-of-mouth publicity. Before he proceeds, however, there's some important analysis for Bernard to do.

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Abstract

Bernard Horowitz, Owner and Operator of Bernard's New York Deli, had recently moved to a new, larger location. Business during the first three months had been good. To take full advantage of the new location, Bernard wanted to expand seating by 50 customers and buy new equipment. This would cost $30,000, but his bank would not lend him additional funds. Recalling the gift certificates he had used eleven years earlier, he decided to use discount certificates called deli-bucks. Customers could buy them for $8 each and after 90 days redeem them for $10 worth of food. If it all worked as planned, Bernard would have the $30,000, the expansion would take place, he'd have repeat customers coming in, and maybe even favorable word-of-mouth publicity. Before he proceeds, however, there's some important analysis for Bernard to do.

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