Ichiban Boshi is a Japanese restaurant in Great World City shopping mall. There used to be 5 tables of two pax, 10 tables of three pax, and 7 tables of four pax in the restaurant. In early May 2023, the owner decided to reduce the restaurant's seating capacity to 4 tables of two pax, 9 tables of three pax, and 5 tables of four pax. Assume that a diner spends an average of $37 and 70 minutes for every visit to the restaurant, regardless of whether it is before or after the change of seating capacity. During lunch and dinner peak hours (11am to 2pm and 5pm to 8pm), the restaurant is often seen operating at full capacity.

 

Question 1

 

Estimate the average number of customers per hour who finish dining and leave the restaurant during peak hours before the change of seating capacity by applying Little's Law. At what rate (dollars per hour) is revenue generated if the restaurant operates at this throughput rate?

 

 

Question 2

 

This question is with respect to the operations after the change of seating capacity. Apply Little's Law to the following questions: What is the throughput rate during peak hours after the change of seating capacity? At what rate (dollars per hour) is revenue generated if the restaurant operates at this throughput rate?