Ricks is a popular restaurant for fine dining. The owner and chef, Rick Goetz, is pleased with his success and is now considering expanding his existing restaurant or perhaps opening a second restaurant. Before making his decision, Rick wants to find out more about his competitive position. There are three other restaurants that compete directly with him on food quality and price. Rick knows that his profitability depends on his ability to provide a satisfying meal at the market price. His first step was to gather some information about his customers, using an independent market research firm, which informed him that his customers were looking for taste, comfort (the ambiance, service, and overall presentation of the food), and enjoyment (the distinctiveness of the dining experience, a degree of excitement). He was surprised to find that comfort and enjoyment ranked highest: First: Customer Criteria and Ranking Importance Relative Importance Taste 23 8.65% Comfort 83 31.20 Enjoyment 160 60.15 Total 266 100.00% Next, he worked with his key wait staff and chefs to try to identify the three main components, and related costs, of the service Ricks provides: Second: Components and Cost Components Cost Percent of Total Menu and food preparation $ 6 22.22% Wait staff 13 48.15 Food ingredients 8 29.63 Total $ 27 100.00% Having the customer criteria and components, Rick now again worked with his staff to assess how each component contributes to the desired customer criteria: Third: Determine How Components Contribute to Customer Satisfaction Customer Criteria Components Taste Comfort Enjoyment Menu and food preparation 26% 29% 28% Wait staff 28 43 44 Food ingredients 46 28 28 Total 100% 100% 100% Required: 1. Using the information Rick has developed, determine the importance index for each component (menu and food preparation, wait staff, and food ingredients). 2. Calculate the ratio between the relative cost percentages for each component and your findings in Requirement 1. Determine what action Rick should take on each component.