A proposed food service facility in Countryville will have 100 seats and be open for breakfast, lunch,
Question:
A proposed food service facility in Countryville will have 100 seats and be open for breakfast, lunch, and dinner, Monday through Saturday. The owner believes its seat turnover (ST) by meal period and average food service check
(AFC) will be as follows:
Breakfast Lunch Dinner Day ST AFC ST AFC SI AFC Monday LS $3.20 Lav $6.80 8 $9.50 Tuesday 1.4 3.20 1.8 6.90 #4 9.50 Wednesday Le 3.20 1.8 6.90 7 9.50 Thursday iD 3.20 1.8 6.90 7 9.50 Friday ite 3.50 1.6 6.70 1.6 11.50 Saturday 4 2.80 5 6.20 13 11.50 Assume a year has 365 days, and the first day of the year is a Monday.
Required:
1. Calculate the estimated food service sales for the year.
2. Recalculate the estimated food service sales for the year assuming the AFC is $.15 lower per meal and the ST is .1 percentage point lower for each meal period (for example, the ST for Monday breakfast is 1.4 rather than 1.5).
3. What is the difference between the total revenues calculated in numbers 1 and 2 above?
Step by Step Answer:
Financial Management For The Hospitality Industry
ISBN: 9780131179097
1st Edition
Authors: William P Andrew, James W Damitio