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QUAESTUS

NO. 15/ June 2019

EDITORIAL BOARD HONORARY EDITORS

MOMCILO LUBURICI,

Professor PhD, President Founder o f

"Dimitrie Cantemir" Christian University Bucharest

CORINA ADRIANA DUMITRESCU, Professor PhD, President o f the University Senate "Dimitrie Cantemir"

Christian University Bucharest

EDITORS IN CHIEF

CIPRIANA SAVA,

Associate professor PhD., "Dimitrie Cantemir" Christian University Bucharest, Faculty o f Management in Tourism and Commerce Timisoara LUIZA CARAIVAN,

Associate professor PhD. Tibiscus UniversityTimiçoara

CONSULTATIVE BOARD MIRELA MAZILU,

Professor PhD. University of Craiova, Faculty of Social Sciences, Drobeta Tumu Severin, Romania

MALISA ZIZOVIC,

Professor PhD. University of Kragujevac, Serbia

ELENA PETKOVA,

Associate professor PhD. University

“StKliment Ohridski” Sofia, Bulgaria

GROZDANKA BOGDANOVIC,

Professor PhD. University o f Belgrad, Technical Faculty Bor, Serbia

JESÚS LÓPEZ^RODRÍGUEZ,

Associate professor PhD, Dept, o f Economic Analysis and Business Administration, University o f Coruna, Spain

SAMIR NURIC,

Associate professor PhD. University o f Tuzla, Bosnia and Herzegovina JÓZSEF GAL,

Associate professor PhD. Szeged University, Hungary

METE Ciineyt OKYAR,

Associate Professor, PhD. Economics Department, Çirnak University, Turkey DINA LUT,

Associate professor PhD. "Dimitrie Cantemir" Christian University Bucharest Faculty o f Management in Tourism and Commerce Timiçoara MARIUS MICULESCU,

Associate professor PhD. "Dimitrie Cantemir" Christian University Bucharest Faculty o f Management in Tourism and Commerce Timiçoara CIPRIAN PAVEL, PhD.

"Dimitrie Cantemir" Christian University Faculty o f Management in Tourism and Commerce Timiçoara ADRIAN MATEIA,

PhD., Drágán University, Lugoj, Romania

CHRISTINA MIJARIU,

PhD. “Dimitrie Cantemir" Christian University Bucharest Faculty of Management in Tourism and Commerce Timiçoara, Romania

LAURA COROAMÄ-DORNEANU, PhD. BUASVM “King Michael I of Romania” - Timisoara

GIIEORCHE PINTEALÄ, PhD. In Law

1

Q U A E S T U S MULTIDISCIPLINARY RESEARCH JOURNAL

ASSESSM ENT OF THE DEMAND FOR

THE RENOVATION OF A PUB AND CALCULATIONS OF THE RENTABILITY OF THE INVESTMENT

Brigitta ZSÓTÉR Andrea ANTAL

Abstract: We conducted a need and satisfaction assessment before the renovation o f a pub. The questionnaire survey confirmed the need fo r this investment. However, the guests are veiy sensitive to prices, so only a small increase in the price o f drinks can be carried out. We requested a price quotation fo r the renovation ( ’A ’ and В ’). In the case o f an investment, we recommend that the company accept the "B proposai In this case the discounted return time is 153 days. At the expected return o f 5%, the net present value (NPV) is HUF 6,183,642, the internal rate o f return (IRR) is close to 100%. In case o f proposal В ’, each invested HUF 1 brings in HUF 13,94 at a 5% expected return. It is expected that the renovation, modernization would increase the share o f the enterprise in the market.

Keywords: questionnaire survey, assessment o f the guests ’ demands, renovation o f a pub, investment recommendations, calculations on rentability, price sensitive guests

1. IN T R O D U C T IO N

W e set it as a goal to assess the present customers satisfaction with a questionnaire survey on Tormási Söröző o f Nagykőrös (Tormási Pub). We involved people into our research who had never been to the pub, too, but after a renovation would like to go there. W e had the following hypotheses:

1st hypothesis: customers who visit Tormási Söröző are price- sensitive.

2nd hypothesis: less than 50% o f customers are not satisfied with the present furniture o f the enterprise.

3rd hypothesis: more than 60% o f the present or potential costumers would need a private room.

4th hypothesis: after the planned renovation most o f the customers would be willing to pay maximum 20% more.

We conducted a questionnaire to prove the correctness o f the hypotheses, or to reject them. Thus, in this assessment trade is linked to

; 9006) to public catering (Voleszák Z.,20] J marketing (Benkö-Kiss ^ f o l d e d here (Gál J., Dumitrescu D. ' addition, even loglsh a , j . Rafael B., 2018), and the .ssue of , 2014), ie servieGogis l ^

safety (FabulyaZ. et at.,

„ л/i a t fRIAL a n d m e t h o d

2\ MiЛ S e a rc h included compilation o f a questionnaire of r

■ Pnms^ e considered important to assess habits and demands, questions, as wee c0StumerS. The questionnaire was complet , of the present и P whQ had been t0 a pub. W e found these people S w e f tq u e n te d two other pubs, besides Tormási Söröző. Data coll,,,.

s S in May, 2016. The questionna,re was mod,Tied alter the , auestioning (Horváth Gy., 2004), during which the questions were correct, and the inclusion of additional questions was considered necessary. So. v, followed the methodology of the usual customer habit assessment (Gál .1..

al„ 2014). There were some answerers who visit all the three places. W, could reach a relatively high proportion because the survey was conduct,, in summer when the turnover and attendance of pubs are the highest Questionnares were filled in three times a week, on different days eve:

week, between 7 and 23 o’clock.

To assess the data (Majoros P., 2010) we used the IBV SPSS(Statistical Package for Social Science) Statistics 24 version. Thu program is appropriate to execute operations, like database manageme descriptive statistics, or editing mathematical-statistical procéder,' (Hampel Gy., 2018).

Altogether 325 people filled in the questionnaire in 3 and . months.

tl

hniiHino'1 adibt'on t0 assessment, we carried out rentability calculate I t e Z l i r r°0m (tab,e f00tba11’ biUiards and darts rootr calculated rentabihtvS т Г ° * РПСе quotations on the basis o f which costs of decorations ; i ^he bW0 quo^adons differed from each other the bridging of two r o o m e r S' C W° r^ Was sam e- According to tie I out by dismantling a t0 eacF ot^ er *n the pub should b e, quotations, the return L h J l r ’ toniling an arch. On the basis o f th ; . 26? 000 ifwe bridge thpt e Investment> i-e. the starting cash

e can calculate with a retu rn W° rooms with an arch without decs ecorated with rustic bricks Va UC ° f HUF 297.000 i f we want an

before startin ц ’

structure of the opera,*™ « ■ * « ■ » , it was ne „ oullll h flow- Then, based on ihese basie

22

calculated the usual dynamic indicators and compared the two quotes. Ol course, the money-time-value principle was taken into account during our discounting (Nagy S„ 2014).

3. RESULTS O F M Y OWN R ESEAR C H

The first hypothesis, i.e. customers at Tormási Söröző are price- sensitive, proved to be true. In the questionnaire we asked customers what aspects they prefer in a pub. It was price to be ranked tor the first place.

Consequently, in case o f any investment, the management has to allow for that guests do not feel the increase in price so drastic. As it has been mentioned earlier, their competitive advantage against other pubs in Nagykőrös is the stable low price. However, it has to be reconsidered what profit the permanently low prices would bring in the future. Other valuable results were: 58% o f people in the research go to the pub more times a week, so they are regular customers. Most o f them, about 40%, spend in this given place 1-2 hours, 28% h alf an hour or an hour, 17% more than two hours, and only 15% less than h alf an hour. A significant part o f the repliers, 150 people, said that they spend 2000 and 4000 HUF at one occasion. O nly 23 of them spend between 500 and 1000 HUF, while 31 people spend a bigger amount o f money, over 8000 HUF.

The second hypothesis is that less than 50% o f customers is satisfied with the present furniture o f the enterprise. This hypothesis has been rejected because it can be concluded from the evaluation o f the questionnaire that out o f the 264 people, 159 fillers would recom m end the modernization o f the place. We can mention 264 people because out o f the 325 repliers, only 264 had ever been to the place. Based on this, the owner o f the pub should size up the situation, since 60% o f custom ers recommends modernization. In our opinion, it is not a surprise, since the enterprise has been working for almost 20 years, and the furniture has not been changed during these 20 years. We recommend the m odernization because the enterprise would open for new customers who prefer a m ore m odem place.

Our following hypothesis is that more than 60% o f the present and potential customers would require a separate game room (table football, billiards, darts room). This hypothesis has been proved, as 83% o f the repliers would need this service. This result shows that people in Nagykőrös do not have the chance for the entertainment o f this kind. M ost o f them go to Kecskemét (15 kms from Nagykőrös), though there is an extra cost because o f the travelling. We think that building a separate game room is a good idea because people would spend the sum reserved for travelling

locally, in Tormási Söröző. c ë

Q U A ESTU S MULTIDISCIPLINARY RESEARCH JOURNAL

, i е a fte r th e p la n n e d re n o v a tio n

most

0 u r laS|d te ° w illm g to p ay m a x im u m 2 0 % m o re , iras been Wrf customers woMb g ien ce a g a in h o w m u c h

the custom«;

M ost o f them , „ 7 fiU ers, c o n s ^ e r a n m e a s e of y ;

—. . loci

" ? ? е т ы Г т е а п 5 less than 15 fo rin ts in c re a s e fo r a m u g o f beer. * reahsuc, m is th e y w o u ld s e e an in c re a s e betw een 5"„

т Г 0о ? т а1

И

be stated that more than half of

m/o opt • forthe drinks more than,f)% ^0nk

S would noth" w illin g to p ay fo r th e d rin k s m o re th a n 10 % . O n , f t ,

answerers would accept a price in crease o f o v e r 2 0 % m th e given place.

Consequently, the pub can n o t a ffo rd to b e c o m e a much пкг, expensive place after the m o dernization. C o sts o t in v e s tm e n t can be built the price o f drinks only reasonably. C o n sid e rin g th is m inim um price increase, we made econom ic calculations. It is v e ry im p o rta n t that qualm management should not be forgotten (T isca I. et al., 2 0 1 5 ).

Table 1 shows the calculation o f the o p eratin g c a sh flo w s fo r the quotation for renovation o f the pub ("A" and "B").

T able 1: Calculation of the cash flow on the basis of the quotations for the renovation Operating cash flow

Name Sum in case of

recommendation ’A ’ (HUF)

Sum in case of

recommendation ’B’ (HUF)

+ Revenue 6.935.000 6.935.000

- Current operating costs -5.663.323 -5.663.323 - Depreciation ”-15.706 --- -17.471 result Derore tax

-Corporate Tax Mtm

T 25 5.9 71 --- —

.-IOC Cn-7 --- ^1.254.206 1.128.785 +17.471 , 1.146.256 I on my own data

Hw expected yield.

Wet present value (HUF)

^^^endaticitC A r=10°/(

r=5°/c 12.653.906 Source: my own

8 826.854 lons based on

Recommendation ’B’

r=5% r=10%

12.625.890 8.898.266

r=20%

5.176 V

For the investment, we recommend for the enterprise to accept the quotation

’B’. In this case the discounted return time in 153 days. At the expected return of 5%, the net present value (NPV) is HUF 6,183,642 (Table 2) and the internal rate of return (IRR) is close to 100%. In case of proposal B’, each invested HUF 1 brings in HUF 13,94 at a 5% expected return.

4. SUMMARY

In the light of the results, our proposal is that the Tormási Söröző in Nagykőrös should implement the above-mentioned investments. They can gain greater customer satisfaction among their current guests and attract a new customer base. In our opinion, it is impossible to ignore the fact that the residents o f Nagykőrös would demand the existence of a game room (darts, table soccer, billiard room) in the city. It would be worthwhile to place leaflets in the surrounding tourist information centers (Sava C., 2016) on the pub and its new offer (Sava C., Pinteala G., 2016). With the modernization, the market share of the company would increase significantly. From the point of view of sustainable development (Irimie S.I., et. al., 2014) and the local economic development (Kis К.; Förgeteg L., 2017), the development are not negligible regarding that the economy may have come out o f the crisis (Scalera F., et. al. 2012). As well as the aspect of the movement o f the population (migration) (Illés S., 2005), therefore from the point o f view those migrating in or out (Illés S., 2001), the population retention effect can be felt somewhat in the long term in the region (Nagy G. D., 2005).

QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL

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l20\2) "digU‘0 gazdálkodási tevékenységek. OE Voleszák Z o ltá n . >

Bridn°NTHÍ AUTH0RS

University of Szegen, Faculty „( Л ^{' '’110-1} associate profeb

«оТ егьТ Г ' Mars ,er

6724 Sz«.He í 8 Departme"' of Economics

phone:

Andrea ANTAL (r

Hungary601 01 Economi« and of s«8ed, Faculty of Emr

Development, Mars ter 7. 6724