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Required information Skip to question Lisa's is a well-known restaurant that offers customers a large dining room and comfortable bar area. LisaJames, the owner and
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Lisa's is a well-known restaurant that offers customers a large dining room and comfortable bar area. LisaJames, the owner and manager of the restaurant, has seen the number of patrons increase steadily over the last two years and is considering whether and when she will have to expand its available capacity. The restaurant occupies a large home, and all the space in the building is now used for dining, the bar, and kitchen, but space is available on the property to expand the restaurant. The restaurant is open from 6 p.m. to 10 p.m. each night (except Monday) and, on average, has 28 customers enter the bar and 54 enter the dining room during each of those hours. Lisahas noticed the trends over the last 2 years and expects that within about 4 years, the number of bar customers will increase by 50% and the dining customers will increase by 20%.
Lisais worried that the restaurant will be not be able to handle the increase. As someone who has recently taken ADMS2510, you have beenasked by Lisato study the restaurant's capacity. In your study, you consider four areas of capacity: the parking lot (which has 84 spaces), the bar (58 seats), the dining room (104 seats), and the kitchen. The kitchen is well-staffed and can prep any meal on the menu in an average of 12 minutes per meal. The kitchen, when fully staffed, is able to have up to 20 meals in preparation at a time, or 100 meals per hour (60 min/12 min 20 meals). To assess the capacity of the restaurant, you obtain the additional information:
- Due to fire regulations, all bar customers must be seated.
- Diners and patrons come to restaurant by group per vehicle. The Dinner arrive with average of 3 persons per vehicle and patron with an average of 1.5.
- Diners,on average, occupy a table for an hour, while bar customers usually stay for an average of 2 hours.
- The bar customer typically orders one drink per hour at an average of $8 per drink; the dining room customer orders a meal with an average price of $21; the restaurant's cost per drink is $2, and the direct costs for meal preparation are $4.
Required:
1-a. Given the current number of customers per hour, what is the amount of excess capacity in the bar, dining room, parking lot, and kitchen?
1-b. Calculate the expected total throughput margin for the restaurant per day, and month (assuming a 26-day month).
2-a. Given the expected increase in the number of customers, determine if there is a constraint for any of the four areas of capacity. What is the amount of needed capacity for each constraint?
2-b. If there is a constraint, reduce the demand on the constraint so that the restaurant is at full capacity (assume some customers would have to be turned away). Calculate the expected total throughput margin for the restaurant per day, and month (assuming a 26-day month).
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