Home > Free Essays > Business > Case Study > Carlo’s Food Company: Information Misunderstanding

Carlo’s Food Company: Information Misunderstanding Case Study

Exclusively available on IvyPanda Available only on IvyPanda
Updated: Oct 17th, 2020


There are many situations when children misunderstand the information offered by companies to attract customers, and such misunderstanding leads to some additional costs and discontent. Carlo’s Food is the company that faces a considerable ethical dilemma connected with the fact that children are not able to understand the information offered in the right way and are ready to blame the company for false or unclear facts. As a manager of the company, I cannot agree with the fact that Carlo’s Food misrepresents the facts. Such customers as children or older adults do not want to spend enough time to clarify the conditions of sales or discounts. They enjoy the possibility of having a discount and resent when they do not get such because of not following the rules. In this case study, the analysis of children’s and their parents’ concerns about the changes in the price of certain products in Carlo’s Food will be developed to clarify why companies make such unclear advertisements, and why children or their parents cannot understand that marketing could be cruel, and they cannot blame others for their own mistakes.


Carlo’s Food is a restaurant that is famous due to its attention to regular customers and the introduction of high-quality food and services. Regulars visit the place and treat it as something special and dear. However, as soon as the company had gathered the required client base, it stopped to attract new customers that led to such situations as the misrepresentation of information and the inability to provide customers with clear facts. Some customers are not satisfied with the fact that they cannot buy food at the price specified in the advertisement. They complain that they have to spend much money than it is defined in the ad. Children, as well as some adult clients, do not read the offer till the end and make wrong conclusions. As a result, certain discontents and questions appear. The board of directors has to understand that the goal of the company should not be to the satisfaction of regular customers only. Carlo’s Food has to think about changing its main policies and strategies and think about new customers, who could join the restaurant.

Carlo’s Food has already introduced itself as a restaurant with high-quality food. People, who know about it, are eager to visit it and enjoy meals. However, new customers should also notice that they are welcome at Carlo’s Food, and hall managers should think about their new customers, explain the discounts and special offers, and attract them. In other words, direct communication with customers should become the main priority for the restaurant. In many cafes and shops, managers like to ask customers simple questions like “How are you?” or “What do you think about …”. The investigations show that many customers find it interesting and relaxing to exchange a couple of phrases with unknown people. Such an approach should not cost a lot for the company, and the results could bring certain benefits in a short period of time.


Nowadays, the situations when people misunderstand the information offered by companies in the forms of sales and discounts vary considerably. Some people fail to read the conditions under which the event occurs. Some people do not pay attention to the fact that one day, they are the participants of a discount, and another day, there is no discount at all. This time, Carlo’s Food Company is charged with misrepresentation of information. Carlo’s Food is an American fast-food restaurant where people of all ages could eat and buy food to go. This company is famous due to its numerous sales and discounts. Many people like to eat there because they believe that modern prices are overvalued. However, recently, one unpleasant situation occurred.

There was an offer to regular customers to buy a meal with a 50% discount. The price of the meal was underlined, and the requirement (the presence of three checks) was mentioned under the price and written in little letters. People bought the meal and expected to pay less. Children did not want to read the conditions of the discount at all and started to demonstrate their frustration. Customers had nothing to do but to buy meals at their actual price and spend more money than it was expected. Almost the same situations happened to Amazon, Google, and Apple, when children could make in-app purchases without parental permission: children’s inattentiveness, parental neglect, and company’s misrepresentation of information led to additional and unexpected costs.


Several alternatives were offered to unsatisfied customers. First, customers could get the required discount as soon as they became regular customers by leaving their personal information at the store or keeping saving checks. Second, the company had to improve its advertisement and make sure that the discount’s details were clear and available to all customers. Finally, a customer had a right not to buy order and not to pay for it without being aware of its actual price. All alternatives made sense, and all of them were rejected. It is disadvantageously for the company to prepare an order and not to sell it at once: only fresh orders could be offered to customers. Customers did not want to wait and gather checks to get the discounts. Finally, the improvements in ads cost money. The company was free to use any ad possible in case it corresponded with the standards of the country.

Proposed Solution

The main task in this situation is to make sure that customers are satisfied and the company should not lose its money. Therefore, an appropriate solution, which is not too costly but still appropriate for the company, includes the introduction of one hall manager, who could inform clients about the peculiarities of the discounts offered. In fact, the company does not make some serious mistakes that have to be legally punished. What should be changed is the way customers are informed. As soon as the company gives all information in a clear way, customers are free to interpret it any possible way. Still, any legal proceedings or public concerns cannot be used to blame the company in misrepresentation. Restaurant CCTV could be used as evidence that each customer is informed about the conditions under which the discounts could be got.


It is suggested for the company to think about its future cooperation with customers and the necessity to attract all people regardless of the fact if they are regular or new clients. Carlos’ Food should be positioned as the restaurant that appreciates the choices of its regulars. Therefore, the strategy of retrenchment (i.e. focus on the best lines of the company) seems to be a good recommendation for Carlo’s Food. The restaurant has to concentrate on what it does best and make sure that customers support the chosen direction. Discounts for regulars, direct communication, and high-quality food are three main directions that cannot be neglected and have to be developed to any possible extent. Still, potential clients should also feel their urgency and significance for the company.

This case study on Carlo’s Food Company: Information Misunderstanding was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Request the removal

Need a custom Case Study sample written from scratch by
professional specifically for you?

801 certified writers online

Cite This paper
Select a referencing style:


IvyPanda. (2020, October 17). Carlo’s Food Company: Information Misunderstanding. https://ivypanda.com/essays/carlos-food-company-information-misunderstanding/


IvyPanda. (2020, October 17). Carlo’s Food Company: Information Misunderstanding. Retrieved from https://ivypanda.com/essays/carlos-food-company-information-misunderstanding/

Work Cited

"Carlo’s Food Company: Information Misunderstanding." IvyPanda, 17 Oct. 2020, ivypanda.com/essays/carlos-food-company-information-misunderstanding/.

1. IvyPanda. "Carlo’s Food Company: Information Misunderstanding." October 17, 2020. https://ivypanda.com/essays/carlos-food-company-information-misunderstanding/.


IvyPanda. "Carlo’s Food Company: Information Misunderstanding." October 17, 2020. https://ivypanda.com/essays/carlos-food-company-information-misunderstanding/.


IvyPanda. 2020. "Carlo’s Food Company: Information Misunderstanding." October 17, 2020. https://ivypanda.com/essays/carlos-food-company-information-misunderstanding/.


IvyPanda. (2020) 'Carlo’s Food Company: Information Misunderstanding'. 17 October.

Powered by CiteTotal, online citation maker
More related papers