Replacement Analysis for Replacing One of Revenue Stream Fuller Smoketown

PT Mahajana Boga Semesta is a company engaged in the provision of food and beverages as well as hospitality. After the pandemic ended and the people were free to be active, the company decided to expand its t-customer business line by establishing a restaurant in the city of Bandung with the trademark Fuller Smoketown. To bring innovation that is different from other restaurants, Fuller Smoketown focuses on developing food variants whose cooking process uses the smoking method. Apart from that, the company has also embedded facilities that other restaurants do not have, such as VIP rooms which can be used as a place for meetings, meals, and karaoke. This VIP room is equipped with karaoke facilities that are appropriate and equivalent to karaoke places in general. At the beginning of the opening of the Fuller Smoketown restaurant, this VIP room became the prima donna and was in great demand by consumers but in the second month and so on the interest in this VIP room actually decreased and did not show any business growth until in the end after 1 year of operation the company planned to close the business line VIP room and replace it with a new line of business, namely leasing business space to third parties. The company is still hesitant to realize this plan due to considerations of cost and revenue issues whether it is comparable to closing the old line of business and replacing it with a new line of business. In this study the author will try to provide an explanation of this plan by using replacement analysis with the indicator NPV, IRR, and Payback period. so that it can assist companies in making decisions regarding the replacement of old business lines with new business lines.