BONBON BISTRO - ONLINE SEGMENT BonBon Bistro is a French bistro located in Burnaby. The Bistro is essentially made up of a sit-down area with service and a daily menu for lunch and dinner while the front of the bistro is a take-out bakery and caf. The manager of the Bistro, Mr. Georges, is contemplating some important business decisions for the bistro and came to you for assistance in determining what costs are relevant to making these decisions. DROP THE ONLINE SEGMENT? For the past two years, BonBon has been operating an online platform through their website that allows customers to place orders online and have the food delivered to them within 45 minutes. The orders are then prepared in the same kitchen by the same staff operating the restaurant. The order is then delivered by a delivery person with the BonBon Bistro motorcycle that was purchased for this segment. The online delivery platform is managed from a small office located at the back of the restaurant. BonBon's manager, Mr. Georges, is considering dropping this segment as he believes it is not profitable. The maintenance of the IT platform has been expensive, and he also believes that the online orders take up a significant portion of his time while making up a small portion of the revenues. Georges believes his time could be put to better use with other projects and initiatives for the Bistro as well as managing the current operations. Georges indicates that staff turnover has been higher this past year and he feels partly responsible as he has not been able to be very involved with supervising and coaching the staff. The feedback on the online the platform has been good and he noted that many new customers of the caf indicated that they discovered the caf after they saw the website and ordered delivery from the online platform. Georges provides you with the following financial information of the Bistro and asks you to help him decide whether they should keep or drop the online delivery segment. Additional information about the restaurant and the online delivery segment is provided on the next page.