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al 6 CASE In the case at the end of Chapter 3, you calculated the average food and bever- check for the 4C Company's 84-seat
al 6 CASE In the case at the end of Chapter 3, you calculated the average food and bever- check for the 4C Company's 84-seat restaurant in Year 2007. The restau- rant was open for 52 weeks, 6 days a week for lunch, and 5 days a week for dinner. An analysis of sales checks indicated that the average turnover was 1.5 times for lunch and 1.25 times for dinner. Lunch contributes about 45% of to- al sales revenue and dinner contributes 55%. Total beverage sales revenue is 20% at lunch and 80% at dinner. a Calculate the average lunch and average dinner checks for food and bever- ages. This information will be used in a later case. Suggest to Charlie a number of ways in which he could attempt to raise the average check and the total food and beverage sales revenues for Year 2008. e. In part b, one of the ways might be to substitute, on the food menu, items with a low selling price for items with a high selling price. Write a short re- port to Charlie about the effect this might have on the restaurant's guests, its food cost percentage, and its gross margin and net income.
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