Fast food establishments allocate funds towards sales promotion in order to enhance their daily revenue and overall profitability. Intense market competition compels stores to implement efficient promotional programs to generate earnings. Because of a li

Abstract

Fast food establishments allocate funds towards sales promotion in order to enhance their daily revenue and overall profitability. Intense market competition compels stores to implement efficient promotional programs to generate earnings. Because of a limited understanding of its economic implications, operation managers must assess the profitability of the current use of sales promotion. This study examines the influence of promotion attributes on sales and revenues and constructs a conceptual model to evaluate the effect of sales promotions on emporium profitability. We utilised the Granger Causality Test, Impulse Response Function, and Pretest/Posttest Design Models to ascertain the causal connection between customer purchasing behaviour and sales promotion, as well as to assess the significance of sales at the Chophouse fast-food restaurant. We use the established framework model to evaluate the profitability of the current sales promotion strategy and identify the most profitable discount rate. The study's findings suggest that Chophouse's sales promotion techniques result in immediate advantages because there is no long-term relationship between sales promotion and consumer purchasing behaviour. Furthermore, a consistent rise in promotional expenditures is unlikely to exert a substantial influence on customer buying patterns and may even result in an ineffectual promotion, given that the findings indicate that sales promotion does not affect consumer purchasing behaviour.