Question
Amy and Amanda want to open a new sushi restaurant called Robotic Sushi together in San Antonio. They plan for their restaurant to be very
Amy and Amanda want to open a new sushi restaurant called Robotic Sushi together in San Antonio. They plan for their restaurant to be very special and one-of-a-kind in San Antonio, in that all sushi will be prepared by robots. Also, Amy and Amanda want to make it even more special in that there would be no waiters/waitresses serving the restaurant. The two want their customers to have a fully automatic/robotic experience. Other than bringing in a unique dining experience for customers, this business idea also has a giant advantage: the expensive Direct Labor (DL) cost will be cut down to almost zero. And because DL usually takes the biggest portion of the total variable cost, the variable cost for each sushi dish that the restaurant sell will be very minimal due to this. What is the advantage and disadvantage of this business plan from the operating leverage point of view?
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