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American Journal of  Applied 
Statistics and Economics (AJASE)

Methods and Applications of  Investment Decisions in the Catering Industry
Chaoheng Yan1,  Sviridova Tatyana Grigoryevna2, Xinxin Liang3*

Volume 3 Issue 1, Year 2024
ISSN: 2992-927X (Online)

DOI: https://doi.org/10.54536/ajase.v3i1.2624
https://journals.e-palli.com/home/index.php/ajase

Article Information ABSTRACT

Received: February 10, 2024

Accepted: March 24, 2024

Published: March 28, 2024

With economic globalization and consumption upgrading, investment activities in the 
catering industry have become more frequent and complex. This study aims to explore 
effective methods for investment decision-making in the catering industry and empirically 
analyze their application with a view to improving investment efficiency and accuracy. 
Through the method of  financial analysis difference calculation, we comprehensively analyze 
the investment payback period, risk assessment and expected returns. Model analysis reveals 
the performance and applicability of  different investment methods in actual operations. The 
results show that combining the unique industry characteristics of  catering and adopting a 
customized comprehensive decision-making model can significantly improve the success 
rate of  investment decisions. Therefore, good risk assessment and decision-making methods 
can bring clearer investment directions and higher economic benefits to investors in the 
catering industry.

Keywords
Catering Industry, Investment 
Decision, Risk Assessment, 
Investment Method

1 Master of  Economics, Belarusian State University, Minsk, Belarus
2 Department of  International Political Economy, Belarusian State University, Minsk, Belarus
3 Belarusian State Technical University, Belarus
* Corresponding author’s e-mail: xinxin1205123@gmail.com

INTRODUCTION 
With the deepening development of  economic 
globalization and the changes in the consumption 
concepts of  many consumers, the catering industry, as an 
important part of  the service industry, is becoming the 
focus of  the investment market. However, investment 
decisions in the catering industry are not only closely 
related to the economic environment, but also affected by 
multiple factors such as culture, region, and consumption 
habits, making the decision-making process complex and 
changeable. Under such circumstances, how formulating 
effective investment strategies and achieving effective 
allocation of  capital and reasonable risk control is a very 
challenging task for investors in the catering industry. 
Currently, although some scholars have studied the 
theory and practical operation of  catering investment, 
there is still a lack of  targeted and empirical research in 
view of  the characteristics of  the catering industry, such 
as cyclicality, diverse models, and risk tolerance, especially 
in investment decisions. There are obvious research gaps 
in the development and application of  models.
In response to the above situation, this study aims to 
explore effective methods for investment decision-
making in the catering industry, and verify the application 
and effect of  these methods in actual operations through 
specific cases.
Through comprehensive financial analysis and market 
research, this article systematically analyzes the 
investment environment and risks, and evaluates the 
feasibility of  the investment strategy and its expected 
return performance. The case analysis method is applied 
to different investment scenarios for verification, in order 
to optimize the investment decision-making methods in 
the catering industry.

LITERATURE REVIEW
Theoretical Basis of  Investment Decision-Making
Overview of  Investment Decision Model
In the investment process of  the catering industry, the 
investment decision-making model is an indispensable 
tool. These models are designed to help investors make 
rational decisions by analyzing different economic 
indicators, market trends, consumer behavior, and 
potential risks(1st Banaeian N, et al., 2016). Investment 
decision-making models usually include multiple aspects, 
such as cash flow analysis, rate of  return assessment, risk 
assessment and market analysis.
The catering industry has its own unique characteristics, 
including seasonal fluctuations, food safety issues, 
diverse consumer tastes, and high competition. These 
characteristics need to be fully considered in investment 
decision-making models. For example, consumer 
demand for healthy food and fast food changes with 
time and social and cultural changes, which requires 
investors to accurately predict future consumption 
trends and adjust investment strategies accordingly. 
These investment strategies are inseparable from the 
establishment of  decision-making models. For example, 
cash flow analysis is an important part of  the investment 
decision-making model. Investors need to evaluate the 
cash inflow and outflow of  the project to ensure that the 
investment project can generate sufficient cash flow to 
meet operational needs and bring returns to investors. 
Rate of  return assessment focuses on the ratio between 
investment return and invested capital. In the restaurant 
industry, this metric has a direct impact on financial 
results. Furthermore, risk assessment occupies a core 
position in the investment decision-making model of  
the catering industry . Finally, market analysis involves 



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research on the macro and micro levels of  the catering 
market. Macro-level analysis may include research on the 
overall economic environment and industry trends, while 
micro-level analysis pays more attention to consumer 
behavior, competitor strategies, etc. In addition to the 
model components mentioned above, there are other 
methods commonly used for investment decisions, such 
as decision tree analysis, sensitivity analysis, and Monte 
Carlo simulation. These methods can help investors 
evaluate investment options from different perspectives 
and make more comprehensive and in-depth decisions.
In practical applications, investment decision-making 
models need to be customized according to specific 
investment projects and market environments. Because 
investment decision-making models play an important 
role in catering industry investments, they help investors 
analyze investment opportunities in a structured and 
quantitative way. It is important to note that while these 
models can provide powerful analytical tools, they cannot 
completely replace investor intuition and experience. 
A successful investment decision usually requires a 
combination of  model analysis and investor insights.

Risk Assessment and Management Methods
Risk assessment and management methods are an 
important part of  the investment decision-making 
process, especially in the catering industry. Due to its 
unique market dynamics and uncertainty in consumer 
preferences, risk management is particularly critical. 
This article aims to explore the risk assessment and 
management methods applied in investment decisions in 
the catering industry.
Risk assessment methods include two basic forms: 
qualitative and quantitative. Qualitative methods focus 

on assessing the type of  risk and its likely impact, 
while quantitative methods attempt to quantify the 
probability and potential economic impact of  a risk. In 
investment decisions in the catering industry, qualitative 
methods include SWOT analysis (Strengths, Weaknesses, 
Opportunities, Threats) and PEST analysis (Political, 
Economic, Social, Technological), which help identify 
opportunities and threats in the business environment(1st 
Palepu K G, et al., 2020). Quantitative methods include 
sensitivity analysis, scenario analysis and Monte Carlo 
simulation. Sensitivity analysis is used to evaluate the 
impact of  changes in specific input variables on the 
outcome of  an investment decision, while scenario 
analysis evaluates the potential outcomes of  an investment 
under different market scenarios. Monte Carlo simulation 
predicts the probability distribution of  investment results 
by building a probability model and conducting a large 
number of  random samples.
In terms of  risk management methods, strategies 
commonly used in the catering industry include risk 
avoidance, mitigation, transfer and acceptance. Risk 
avoidance involves taking steps to avoid high-risk 
investments, such as not investing in restaurant businesses 
in politically unstable areas. Risk mitigation reduces 
the impact of  risks by diversifying investments and 
strengthening corporate internal controls. Risk transfer 
typically involves the use of  insurance or contractual 
provisions to transfer certain risks to a third party. Risk 
acceptance is the decision to take certain unavoidable 
risks after risk assessment, usually because these risks 
are closely related to opportunities for high returns. 
Therefore, the risk assessment factors and management 
methods in the catering industry are shown in Table 1 
below.

Table 1: The risk assessment factors and management methods in the catering industry.
Category Influencing Factors
Risk Assessment 
Factors

Economy Food Safety Customer 
Satisfaction

Brand 
Reputation

Financial Factors

Risk Assessment 
Management Method

Component 
Pattern

Big Data 
Applications

Artificial Intelligence 
Can Only Develop

Cost Control Qc

Analyze model factors Data 
Accuracy

Data Collection 
Area

External Data Internal 
Data

Data Difference 
Ratio

Return on Investment and Financial Analysis
When studying investment decisions in the catering 
industry, return on investment (ROI) and financial 
analysis techniques are two core elements. Return on 
investment is a key indicator of  investment effectiveness, 
and financial analysis technology provides investors with a 
series of  methods and tools for evaluating and predicting 
the financial performance of  catering businesses.
Typically expressed as a percentage, ROI is the ratio of  
investment income relative to the investment cost. In 
the catering industry, calculating ROI may involve many 
forms of  benefits and costs, including but not limited 
to initial building decoration costs, equipment purchase 

costs, raw material costs, labor costs, marketing expenses 
and any other operating expenses. In terms of  income, 
it may include daily operating income, improvement of  
brand value and appreciation of  long-term assets (1st 
Hayes D K & 2nd Hayes J D, 2021). Therefore, accurately 
calculating the return on investment in the restaurant 
industry requires a comprehensive consideration of  all 
relevant revenue and cost streams. In practice, investors 
and managers use a variety of  financial analysis techniques 
to evaluate their restaurant businesses. These techniques 
include, but are not limited to, cash flow analysis, cost-
benefit analysis, sensitivity analysis, and financial ratio 
analysis.



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It is worth noting that the catering industry is a dynamic 
and highly competitive field, and long-term brand 
building, customer loyalty, and market share stabilization 
are equally important. So when conducting financial 
analysis, investors should not only focus on short-term 
financial performance. Sensitivity analysis can reveal 
the potential impact on revenue from price changes or 
supply chain disruptions. Financial ratio analysis can 
help investors compare the financial health of  different 
catering companies to determine the best investment 
options (1st Usman, M., et al., 2018).
In addition to internal financial analysis, external 
economic factors must also be taken into account. This 
includes monitoring of  inflation rates, interest rate 
levels, policy changes and socioeconomic trends. These 
macroeconomic indicators may have an impact on 
consumer spending patterns, thereby impacting restaurant 
industry earnings. Therefore, ROI and financial analysis 
techniques are indispensable tools in investment decisions 
in the catering industry. Through these tools, investors 
can gain in-depth insights about their investments, 
allowing them to make informed decisions based on data 
and market trends.

MATERIALS AND METHODS
Investment Decision-Making Methods in the 
Catering Industry
Application of  Empirical Analysis Method in 
Investment Decision-Making
The empirical analysis method is a research method based 
on data analysis. It reveals the internal connections and 
regularities between variables through the collection, 
organization and analysis of  historical data. This method 
has important application value in investment decision-
making. The application of  empirical analysis method 
in catering investment decisions can start from market 
demand analysis. As an important part of  the service 
industry, the development of  the catering industry is 
profoundly affected by consumer preferences, spending 
power and market trends. By collecting and analyzing 
consumer behavior data in a specific area, investors 
can understand changes in consumers’ basic needs and 
preferences for catering consumption, and then predict 
future market demand (1st Polk, C. & 2nd Sapienza, P., 
2018). For example, by conducting regression analysis 
on consumption data over the years, the elasticity of  
consumer demand for a certain catering service can be 
revealed, thereby providing a reference for investment 
decisions.
Empirical analysis also plays an important role in cost 
control and profit forecasting. The costs of  the catering 
industry mainly include food purchase costs, labor costs, 
store rental costs, etc. Through historical trend analysis 
of  these cost data, possible changes in costs in the future 
can be predicted, providing a basis for cost control and 
profit forecasting. For example, by analyzing the trend 
of  food price changes, it is possible to predict future 
fluctuations in raw material procurement costs, and then 

adjust the dish pricing strategy to ensure the realization 
of  profit targets.
Furthermore, empirical analysis methods also have 
significant applications in competitive analysis. 
Competition in the catering industry is fierce, and 
understanding competitors’ business conditions 
and strategies is crucial to investment decisions. By 
analyzing competitors’ turnover, market share, customer 
satisfaction and other data, you can evaluate your own 
competitive position and potential risks in the market. 
For example, through comparative analysis, investors 
can discover competitors’ special services or marketing 
strategies, and investors can adjust their own business 
strategies accordingly to enhance competitiveness.
In addition, empirical analysis methods are also 
indispensable in assessing the feasibility of  investment 
projects. Before investing in a catering project, through 
empirical analysis of  the potential investment project’s 
historical business data, customer flow, brand influence, 
etc., the project’s profitability and growth potential can 
be comprehensively evaluated. For example, analyzing the 
past expansion history and market feedback of  a certain 
catering brand can provide empirical support for the 
location selection and market positioning of  new stores.
In summary, empirical analysis plays a vital role in 
investment decisions in the catering industry. Through 
systematic analysis of  historical data, investors can not 
only more accurately assess market demand, control 
costs, predict profits, analyze competition and assess 
risks, but also develop more reasonable and scientific 
investment strategies based on empirical results. 
Therefore, the empirical analysis method has become 
one of  the indispensable tools in catering investment 
decision-making.

Investment Decision-Making Strategy That 
Combines Qualitative and Quantitative Methods
When discussing investment decision-making strategies in 
the catering industry, the method of  combining qualitative 
and quantitative analysis is particularly critical. Qualitative 
analysis refers to analysis based on non-numeric 
information, such as industry trends, brand influence, 
management team experience, market reputation, 
etc. Quantitative analysis focuses on evaluating the 
potential value of  investment projects through numerical 
calculations, such as financial ratio analysis, discounted 
cash flow ( DCF ) models, etc.
In investment decisions in the catering industry, 
qualitative analysis can first help investors understand 
the fundamentals of  the industry. As an industry 
closely related to consumer demand, the catering 
industry is affected by many factors such as culture, 
region, and consumer preferences (Pieloch-Babiarz, A., 
2020). Through an in-depth understanding of  these 
non-numeric factors, investors can have an intuitive 
understanding of  the development trends and changes 
in the catering market. For example, for a local catering 
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recognition, customer loyalty, brand culture inheritance 
and innovation, etc. For chain catering companies, it is 
necessary to evaluate the brand’s expansion strategy, 
adaptability to new markets and the efficiency of  supply 
chain management.
Qualitative analysis alone is not enough. The investment 
decisions of  catering companies also need to evaluate the 
economic benefits of  the project through quantitative 
analysis. Through in-depth analysis of  a company’s 
financial statements, investors can calculate key financial 
indicators such as net profit margin, asset turnover, 
cash flow, etc. These indicators can help investors judge 
the profitability and financial health of  the company. 
For example, net profit margin can reflect the profit a 
restaurant company retains from each unit of  revenue, 
while asset turnover can illustrate how efficiently a 
company uses its assets to generate sales. Cash flow 
analysis is particularly important for the catering industry 
because it is a cash flow-intensive industry and daily 
operations require a large amount of  cash flow support.
When combining qualitative and quantitative analysis, 
investors need to pay attention to the reliability of  
data sources and the applicability of  analysis methods. 
Because the investment decision-making strategy that 
combines qualitative and quantitative methods requires 
investors not only to have keen market insights, but 
also to have solid financial analysis capabilities. By 
combining the qualitative judgment of  industry trends 
with the quantitative calculation of  corporate value, the 
scientific nature and accuracy of  investment decisions 
can be improved, and more comprehensive and in-depth 
decision-making support can be provided for investors in 
the catering industry.

Application of  Portfolio Theory in the Catering Industry
Portfolio theory, proposed by Harry Markowitz in 1952 
, aims to optimize the ratio of  risk and return through 
the rational allocation of  assets. In the catering industry, 
this theory is also applicable to the decision-making 
of  diversified investments, especially in the face of  
an increasingly competitive market environment with 
changing customer tastes. This section will discuss the 
specific application and effect of  portfolio theory in the 
catering industry.
When making investment decisions, catering companies 
need to evaluate the expected returns and risks of  various 
potential investment projects. According to portfolio 
theory, the correlation between different catering 
projects will affect the risk level of  the overall investment. 
Furthermore, catering companies also need to consider 
capital cost and capital structure when applying portfolio 
theory. The cost of  capital is the price a business must pay 
to obtain capital, including the cost of  debt and equity. 
An ideal investment portfolio should maximize returns 
while minimizing the cost of  capital. Determinants of  
capital structure include the ratio of  debt to equity, which 
directly affects a company’s financial stability and risk 
tolerance. A catering company that relies too much on 

debt financing may face greater financial pressure during 
a market downturn, while a reasonable combination of  
debt and equity can provide greater flexibility.
In addition to traditional portfolio management, the 
particularities of  the restaurant industry also require 
companies to consider non-financial factors. This 
includes things like brand image, customer loyalty and 
employee satisfaction. A strong brand can bring pricing 
power and customer traffic to catering companies, and 
enhance their ability to resist risks. In addition, high 
customer loyalty and employee satisfaction can provide 
stable performance support for enterprises in the 
face of  competition. Therefore, in practice, catering 
companies can use historical data and market analysis to 
build investment portfolios. This requires companies to 
conduct quantitative analysis of  the expected returns of  
each investment project, historical return fluctuations, and 
the correlation between different projects. By establishing 
mathematical models, companies can simulate the 
expected performance of  different investment portfolios 
and choose the solution with the best risk-to-return ratio.
Portfolio theory is not a panacea. In the catering 
industry, there are problems in actual operations such as 
incomplete data, difficulty in predicting market trends, 
and difficulty in quantifying consumer behavior. These 
problems require catering companies to combine industry 
experience and market insights when applying portfolio 
theory and dynamically adjust investment strategies. 
Therefore, portfolio theory provides a systematic 
investment decision-making framework for catering 
companies. By comprehensively assessing the risks and 
returns of  different investment projects, companies can 
control risks while maximizing profits. In the highly 
dynamic and competitive field of  the catering industry, 
the effective application of  theory requires companies to 
continuously learn and adapt in order to achieve long-
term stable development.

RESULTS AND DISCUSSION
Analysis of  Investment Decision-Making Method 
Models and Practical Cases
Model Evaluation and Discussion of  Investment 
Decision-Making Methods in Emerging Catering 
Models
When discussing the application of  investment decision-
making methods in emerging catering models, we first 
need to clarify that the core purpose of  investment 
decision-making is to identify, evaluate and select projects 
that can maximize expected returns. Emerging catering 
models such as catering technology integration, unmanned 
restaurants, food delivery services, etc. are all new areas for 
investment decision-making in the contemporary catering 
industry. Analysis of  investment decisions in these 
emerging models requires the application of  traditional 
financial evaluation methods, while also considering 
industry-specific risks and potentials (1st Nieh, F. P. & 2nd 

Pong, C. Y., 2012).



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The financial evaluation method is shown in Figure 1, 
net present value (NPV) 30% , internal rate of  return 
(IRR) 30%, payback period (PBP) 30% and other 10% 
, etc. We use the above evaluation methods to evaluate 
how an unmanned restaurant can reduce employee costs 
and increase future cash flow, and conduct discount 
calculations to determine whether the net present value 
of  an investor’s investment in an unmanned restaurant is 
positive, and then make a decision on whether to invest.

Therefore, the weight of  each indicator is calculated 
based on the coefficient of  variation. The detailed steps 
are as follows : First, since different data have differences 
in measurement standards and magnitudes, the 
standardization method should be used to standardize the 
indicators. We need to use the extreme value processing 
method (Equation (1) and Equation (2) to standardize the 
original data. The evaluation values are shown in Table 2.           
Through the financial evaluation model assignment, all 
discount values R>0, so the investment decision-making 
method is feasible in the emerging catering model , but we 
should still consider that the emerging catering model is 
accompanied by a high degree of  uncertainty and risk. We 
need to further add methods such as sensitivity analysis, 
scenario analysis and Monte Carlo simulation. Sensitivity 
analysis can help investors understand the impact of  
changes in key variables (such as customer traffic, raw 
material prices, etc.) on project profitability. Scenario 

Figure 1: Assignment evaluation proportion chart

                 Formula (1)

                 Formula (2)

Table 2: Simulation calculation of  financial evaluation method
Evaluation 
indicators

Quarterly output 
value/W

Assessment 
ratio/%

Assignment Discount calculation/R
Formula 1 Formula 2 Yij (1) Yij (2)

Net Present 
Value (NPV)

1 13.2 30 0.92 0.86 3.64 3.41 3.5 3
2 12.5 30 0.79 0.93 2.96 3.49 3.2 3
3 17.8 30 0.62 0.83 3.31 4.43 3.87
4 22.3 30 0.93 0.76 6.22 5.08 5.65

Internal 
Return Value 
(IRR)

1 5.6 30 0.97 0.91 1.63 1.53 1.58
2 5.2 30 0.82 0.85 1.28 1.33 1.3 1
3 7.8 30 0.91 0.79 2.13 1.85 1.99
4 10.5 30 0.76 0.68 2.39 2.14 2.2 7

Present value 
of  revenue 
recovery 
(PBP)

1 2.4 30 0.82 0.84 0.59 0.61 0.6
2 2.1 30 0.85 0.96 0.61 0.69 0.65
3 3.5 30 0.72 0.78 0.52 0.56 0.54
4 5.6 30 0.96 0.75 1.61 1.26 1.4 4

Other 1 0.9 10 0.72 0.83 0.065 0.075 0.07
2 0.7 10 0.91 0.93 0.064 0.065 0.065
3 1.3 10 0.87 078 0.113 0.102 0.108
4 2.7 10 0.79 0.69 0.213 0.186 0.2

analysis further considers multiple possible outcomes 
under different market and operating environments, 
providing investors with a more comprehensive risk 
assessment framework. Monte Carlo simulation, as 
a more advanced risk assessment method, simulates 
possible investment results by building a probability 
model. In addition to the financial assessment and risk 
analysis methods mentioned above, it is also very feasible 

to consider real-time data analysis methods and consumer 
behavior research . By analyzing social media, customer 
reviews, sales data, etc., investors can gain instant insights 
into market trends and customer preferences. These 
analyzes not only help assess the market potential of  
specific catering models, but also guide investors in more 
precise target market positioning. However, investment 
decisions in the catering industry should not ignore non-



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financial factors such as laws and regulations, cultural 
differences and ethics. Therefore, investors need to 
comprehensively consider financial assessment, risk 
analysis, real-time data interpretation, social ethics and 
other aspects of  information to make reasonable and far-
sighted investment decisions.

Catering Business Case Study
When discussing investment decision-making methods 
and their applications in the catering industry, case studies 
are an important way to gain insight into actual operations 
and the effectiveness of  decision-making. This chapter 
will analyze the case of  a representative catering company 

to reveal the methods and strategies used in its investment 
decision-making process, as well as the results and 
existing problems, in order to provide useful reference 
and reference for the catering industry. This catering 
enterprise is a long-established medium-sized restaurant 
chain, its business is mainly concentrated in the mid-to-
high-end market, and it is famous for providing special 
dishes and high-quality services. In the past five years, 
the company has implemented many major investment 
decisions based on market trends and consumer needs. 
These decisions determine the company’s survival and 
development in the highly competitive catering market. 
The decision-making roadmap is shown in Figure 2.

Figure 2: A company’s investment decision-making roadmap

In terms of  expanding chain stores, the company has 
adopted a cautious and effective market research strategy. 
Before opening a new store, the company first conducts 
an in-depth analysis of  factors such as the market 
capacity of  the potential area, consumer taste preferences, 
competitor situations, and geographical location. Based 
on these data analyses, the company selected areas with 
high foot traffic and less direct competition as locations 
for new stores (1st Kusnadi, Y. & 2nd Wei, K. J., 2017). 
Facts have proved that this data-driven location selection 
strategy has achieved remarkable success. The newly 
opened stores attracted a large number of  customers in 
the early stages of  opening, and the turnover gradually 
stabilized and showed a growth trend.
When upgrading kitchen equipment, companies face the 
dual challenge of  improving dish quality and efficiency. 
After a detailed cost-benefit analysis, the company 
decided to invest in the purchase of  automated kitchen 
equipment, including smart cooking equipment and 
ingredient processing systems. The introduction of  these 
equipment not only improves the efficiency of  making 

dishes, but also maintains the consistency of  the taste 
of  the dishes, which is crucial for chain restaurants. At 
the same time, by reducing food waste and saving human 
resources, these investments paid for themselves in just 
over a year.
The introduction of  an intelligent management system is 
part of  the company’s digital transformation. The system 
integrates multiple functions such as order processing, 
inventory management, customer relationship 
management, and employee scheduling. Through real-
time data analysis and reporting, management can make 
decisions faster and optimize operational processes. The 
use of  this system greatly improves work efficiency, 
reduces human errors, and enhances customers’ dining 
experience.
The decision to develop a new menu line is an important 
test of  the company’s ability to continue to innovate. In 
order to attract young consumers and health-conscious 
customer groups, companies have invested in research 
and development and launched a series of  dishes that are 
in line with healthy eating trends. The launch of  these 



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new dishes not only enriches the menu, but also enhances 
the company’s market competitiveness, attracts new 
customer groups, and improves customer satisfaction.
Investment in brand marketing is reflected in multi-
channel publicity and brand image building. Companies 
use social media, online advertising and ground promotion 
activities to effectively convey brand information to target 
consumer groups. By partnering with local communities, 
businesses increase their visibility and loyalty among 
potential customers, and these events not only enhance 
their brand image but also lead to significant sales growth.
Despite a series of  achievements, companies have 
also encountered some challenges in the investment 
decision-making process. For example, during the 
expansion of  new stores, some locations failed to fully 
consider transportation convenience and parking issues, 
which affected customer visitation rates. In terms of  
dish development, some newly introduced high-cost 
ingredients have not received the expected market 
response, resulting in a certain waste of  resources. These 
issues point out that companies still need to improve 
the depth and breadth of  market research, as well as 
strengthen cost control and risk assessment capabilities 
in investment decisions.
Through the study of  this catering enterprise case, we 
can see that reasonable investment decisions are crucial 
to the long-term development of  catering enterprises. 
Successful investment is often based on accurate insights 
into the market, an in-depth understanding of  consumer 
needs and the effective allocation of  corporate resources. 
At the same time, continuous learning and adjustment, 
and reflection and summary of  failed investments are also 
the keys to ensuring that enterprises remain competitive 
in a changing market environment. Catering companies 
should use these cases as a mirror and continuously 
optimize their investment decision-making methods to 
achieve sustainable business growth and brand value 
enhancement.

CONCLUSION
This study aims to explore effective methods for 
investment decision-making in the catering industry 
and the practical application of  risk analysis to improve 
investment efficiency and decision-making accuracy. 
Through a research path that combines theoretical 
and empirical analysis, this article deeply analyzes the 
investment environment, risk assessment and expected 
returns of  the catering industry , explores a customized 
comprehensive decision-making model, and reveals the 
applicability of  this model in actual operations through 
specific cases. Sex and advantage. The research results 

confirm that systematic strategies adopted based on 
the unique characteristics of  the catering industry 
can effectively guide investors to make more accurate 
investment decisions and achieve higher economic 
benefits. Through the above discussion and evidence , it 
is expected to provide investors in the catering industry 
with richer and more complete theoretical support and 
inject new vitality into the sustainable development of  
the industry .

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