The argument claims that Cafe Cappuccino's plan to double outlets is unlikely to be profitable because:
The current number of customers is just enough for profitability, and
The population is not expected to increase significantly.
So, the argument assumes only population growth can increase demand and profitability.
We’re looking for a choice that weakens this by showing how demand or profitability can rise even without population growth.
Evaluate the choices:
(A) Though very little change in the size of the population is expected, a pronounced shift towards a younger, more affluent, and more entertainment-oriented population is expected to occur.
✅ This directly weakens the argument. Even if population size doesn’t grow, a shift in demographics (towards those who are more likely to visit cafes) could increase demand and thus make new outlets profitable.
→ Correct answer.
(B) The sales of ice-creams account for more of Cafe Cappuccino's profits than the sales of coffee and tea.
This shifts focus to another product line but doesn’t refute the link between customer volume and profitability.
→ Irrelevant.
(C) In selecting the mix of items that are served at Cafe Cappuccino the policy is to avoid those that appeal to only a small segment of the cafe-going population.
Describes a business strategy but doesn’t weaken the conclusion about limited profitability due to static population.
→ Out of scope.
(D) Spending on confectionary as well as on homemade chocolates is currently no longer increasing.
If anything, this might strengthen the argument by suggesting limited growth in other revenue streams.
→ ❌ Strengthens.
(E) There are no population centers in the country that are not already served by at least one of the coffee shops that Cafe Cappuccino owns and operates.
This might support the idea that expansion will face saturation, thus strengthening the argument.
→ ❌ Strengthens.