Mr. Cruz, is the General Manager (GM) of a 210-room five stars luxury resort in Algarve (southern coast of Portugal). He was dealing with post-COVID-19 inventory-based restrictions imposed by the government to contain the spread of the virus. For the room department, the average length of stay is of four nights but that's shortened with a new policy from the corporate office to have an effec- tive capacity of 50%, leaving each room empty in between guests for rigorous cleaning and disinfection. In his hotel restaurant, management needs to imple- ment new social-distancing guidelines which include a drastic reduction into its capacity which makes it close to unfeasible to operate. His restaurant has a capac- ity of 160 seats, but it is now under the new rules and regulation limited to 40% maximum occupancy. The same restaurant kitchen is used for catering. Questions 1. Today, capacity management is under tremendous and unprecedented pressure. Based on these inventory-based restrictions outlined above and what you have learned before, elaborate on the specific tactics to maxi- mize occupancy or at certain times, to decrease its clientele processing time. Explain at least two different approaches and calculate the hotel new "sellable capacity." 2. What are the implications which reduced capacity brings in terms of kitchen, staffing levels, equipment, or restaurant space (e.g., reduced number of tables)? Explain a couple of these aspects. 3. Limits on dine-in capacity are also bringing opportunities. What are different and alternative ways you would find to generate ancillary revenue for your hotel restaurant during or post pandemic? More specifically, research and suggest at least three different ways how has the pandemic changed the way restaurant hotels look at its relatively fixed capacity?