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McKinsey Medium Profitability

Tres Burritos

#Restaurant
ProHub Comment

This case tests the candidate's ability to structure a response to an external crisis with multiple strategic options and trade-offs between financial and reputational considerations. The case progresses logically from option identification through financial analysis to cost optimization, requiring both quantitative modeling and qualitative judgment about brand impact.

Estimated Time 15 minutes
Difficulty Medium
Source NYU
50 / 100
Your client is a national burrito chain with 100 locations. There has been a widespread flu virus growing in the U.S. which has the potential to hurt their business. They need your help deciding how they should respond to the virus in NYC specifically, and what the implications will be for their brand.

Clarifying Information

  1. There are 10 locations in NYC
  2. The restaurants sell 3 types of burritos, along with guacamole, salsa, and other sides.
  3. All of their sales come from grab-and-go takeout orders. Tres Burritos does not currently offer delivery.
  4. Their main goal is maintaining a net positive profit. They’re also concerned about how their actions in NY will affect the national brand.
  5. The virus is projected to last for 3 months
  6. We do not know how Tres Burritos is responding in other cities.