Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi Everyone, please help me answer full and clear 4 question at the last image. Thank you very much Paesano, a restaurant located in Knox

Hi Everyone, please help me answer full and clear 4 question at the last image. Thank you very much

image text in transcribed

image text in transcribed

image text in transcribed

Paesano, a restaurant located in Knox City, Australia, services 400 seats. The restaurant employs 40 floor staff and 20 kitchen staff and is strategically positioned outside the Knox City cinema complex. On weekends, 1,200 customers walk through Paesano's doors, so the waiters are very busy all the time. The Wireless New System Paesano purchased a wireless point-of-sale (POS) system called OrderMate (from ordermate.com.au), which allows waiters to place orders using their handheld devices without the need to return to the bar or kitchen areas, saving time and improving efficiency. Paesano installed four terminals in the main restaurant area and one terminal in the pizza area. P0S system-making OrderMate quick to learn (10 minutes) and easy to use. The screen on the handheld PDA is split into the relevant sections of drinks and kitchen. Orders entered into PocketMate are instantly relayed to printers in relevant preparation areas. The technology is suited to all restaurant sizes and can operate 50 meters (approximately 54 yards) externally, allowing the staff to move outside the restaurant to take orders. Results The wireless ordering system allows the waiters more customer time and, therefore, more time for extra foods and drinks to be ordered-and more customers to be accommodated each day. Paesano management estimate conservatively that an additional $48,750 in net sales resulted from floor staff being in front of customers longer. Increased efficiency also allows reduced staff hours and customer service costs amounting to $34,000. Challenges and Process Change The implementation of the wireless devices has been very well received by staff at Paesano. Staff noted that customers found the wireless devices to be novel and a talking point, making their job more enjoyable while improving customer satisfaction. Future Plans Paesano introduced a touchscreen, paperless kitchen system that is likened to a virtual docket rail. This enables waiters to inform customers about the estimated time of arrival for orders. Home delivery using a global positioning system is also planned for the future. This will automatically optimize the drivers' routes and allow management to know where each driver is at all times. Identify the intangible benefits in this case. (To the restaurant, to the employees, and to the customers) Calculate the return on investment (ROI) and the internal rate of return (IRR) (take 6% interest rate). Compute the NPV. Comment on the process change and on the future plans. Assumptions for Questions 2 and 3: Assume sales and cost of goods sold occur in the middle of the year, up-front costs occur on day 1; expense reduction occurs in the middle of the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions