You Are Opening an Informal Dining Establishment in Your Hometown

question 48

Essay

You are opening an informal dining establishment in your hometown, a novel type of buffet-style eatery offering a wide variety of breakfast and lunch choices 24-hours a day, called Anytime Cafe.As part of your initial promotions, you are considering a couponing effort as well as a frequent-diner program.Briefly describe a couponing effort for this business, naming several advantages and disadvantages.Then describe how a frequency program would work for this establishment, including any advantages and disadvantages.

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Definitions:

Lender's Investment

The amount of money lent by a creditor to a borrower, expecting a return on the investment often through interest or profits.

Borrower

An individual or entity that receives funds from another party with the agreement to return the funds or pay them back later, usually with interest.

Forbearance

an agreement between a borrower and lender to temporarily postpone, reduce, or suspend payment due to financial hardship.

Workout Agreement

A formal contract between a debtor and his or her creditors in which the parties agree to negotiate a payment plan for the amount due on the loan instead of proceeding to foreclosure.