Skooters
Practice this intermediate profitability case interview question in the Retail sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This case tests revenue analysis and segmentation strategy. The candidate must identify that declining visits (not rising costs) drive profitability decline, then use per-person spending and market share analysis to determine which customer segment benefits most from a targeted price discount.
Estimated Time
26 minutes
Difficulty
Medium
Source
Duke
10
/ 100
Skooters is a popular nightclub in Durham, NC. The establishment attracts students and young professionals year-round and is especially favored by Duke students. It boasts a well-established in-house DJ and a wide variety of snacks and beverages. However, since 2020, Skooters has been facing declining profits. Their management has approached you to analyze the reasons for Skooters declining profits and develop suggestions to reverse this trend.
Clarifying Information
- Skooters has two primary sources of revenue: 1. Entry fees of $10 per person 2. Beverages and Food
- Their goal is to reverse the trend of declining profitability and restore profit levels to those of 2019
- There is one other large competitor in Durham as of now: Froot. We have limited information on their profitability as of now.
- Skooters is open all days of the week from 7pm to 2am. However, it is busiest on Fridays and Saturdays.
- The menu consists of popular bar foods such as fries and nachos. Other popular attractions include upstairs seating and pool tables.