Question

Taylor’s is a popular restaurant that offers customers a large dining room and comfortable bar area. Taylor Henry, 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 30 customers enter the bar and 50 enter the dining room during each of those hours. Taylor has 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%. Taylor is worried that the restaurant will be not be able to handle the increase and has asked you to study its capacity. In your study, you consider four areas of capacity: the parking lot (which has 87 spaces), the bar (64 seats), the dining room (100 seats), and the kitchen. The kitchen is well-staffed and can prepare 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:

• Diners typically come to the restaurant by car, with an average of 3 persons per car, while bar patrons arrive with an average of 1.5 persons per car.
• Diners, on average, occupy a table for an hour, while bar customers usually stay for an average of 2 hours.
• Due to fire regulations, all bar customers must be seated.
• The bar customer typically orders one drink per hour at an average of $7 per drink; the dining room customer orders a meal with an average price of $22; the restaurant’s cost per drink is $1, and the direct costs for meal preparation are $5.

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?

Answer 1

Henry Taylor
a	Reaturant timing	6-10 PM	except Monday
	Equivalent to per day	4	hours	240	Minutes
	Equivalent to per week	24	hours	1440	Minutes
		Facilities available
S No	Particulars	Dining	BAR	Kitchen	parking
	Average customer per hour	50	30
	Expected increase in 4 yrs duration	20%	50%
	Expected increase in a year	5.00%	12.50%
	Selling price order	22.00	7.00
	Costing per order	5.00	1.00
	Margin per order	17.00	6.00
	Margin percentage	77.27%	85.71%
		seats	seats	per hour	slots
	Maximum capacity available	100	64	100 meals	87
	Analysis of present structure	Dining	BAR	Kitchen	parking
	Average customer per hour	50			17	16.67	17
			30			20.00
	Occupancy rate	1 hour	2 hour
	Maximum Customer served in a day	200	60		37
	Desired parking for max no of customers
	Dining				17	parking for an hour
					20	parking for an hour
	Kitchen meal capacity per day			400
		seats	seats	meals in day	slots(dining)	slots(BAR)	Total	Remarks
	Avaliable capacity in a day	400	128	400	34	43.00	77.00
	Existing capacity per day	200	60	200	17	20.00	37.00
Year 4	Capacity utilisation within four year time span
	No of customers after increase in hour	60	36
	Capacity utilisation in a day	240	72	240	20	24.00	44.00
Year8	Capacity utilisation	72	54
	Capacity utilisation in a day	288	108	288	24	36.00	60.00
Year 12	Capacity utilisation	87	65
	Capacity utilisation in a day	348	130	348	29	44.00	73.00	BAR constraint
Year 16	Capacity utilisation	105	78
	Capacity utilisation in a day	420	156	420	35	52.00	87.00
	Time span	Constraint
1	8 to 12 year	BAR
2	12 to 16year	Dining, BAR and Kitchen and parking at its maximum capacity