Question

Check my work Required information Taylor's is a popular restaurant that offers customers a large dining room and comfortable bar area. Taylor Henry, the 0.33 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 27 over the last 2 years and expects that within about 4 years, the number of bar customers will increase by 50% and the dining and has asked you to study its capacity. In your study, you consider four areas of capacity: the parking lot (which has 90 spaces), the bar (64 seats), the dining room (110 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 x 20 meals). To assess the capacity of the restaurant, you obtain the additional information: points open from 6 eBook customers enter the bar and b enter the dining m. to 10 p.m. each night (except Monday) and, on average, has during each of those hours. Taylor has noticed the trends room References customers will increase by 20%. Taylor is worried that the restaurant will be not be able to handle the increase 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 $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.

Answer 1

1-a
No. of Customers at Bar per hour(a)					27
Average stay in hours(b)					2
Occupied capacity(a)*(b)					54
No. of Customers at Dining Room per hour(a)					60
Average stay in hours(b)					1
Occupied capacity(a)*(b)					60
No. of Bar Customers at any point(a)					54
No per Car(b)					1.5
Parking Spaces used(a)/(b)					36
No. of Dining Room Customers at any point(a)					60
No per Car(b)					3
Parking Spaces used(a)/(b)					20
Excess Capacity Computation
Area		Capacity	Occupied	Excess
Bar		64	54	10
Dining Room		110	60	50
Parking		90	56	34
1-b Current Bar patrons 27 Expected increase 50% Expected Bar Patrons 40.5 Average Occupancy in hours 2 Occupancy Level per hour 81 Total Occupancy per day 324 Current Dining Room patrons 60 Expected increase 20% Expected Dining Room patrons 72 Average Occupancy in hours 1 Occupancy Level per hour 72 Total Occupancy per day 288 Expected Throughput margin Area Price Cost Margin Occupancy Daily Margin Monthly Bar $         8 $         2 $         6 324 $   1,944 $ 50,544 Dining Room $       21 $         4 $       17 288 $   4,896 $127,296 Total $   6,840 $177,840 Daily Expected Throughput Margin $    6,840 Monthly Expected Throughput Margin(26 days ) $177,840

2-a
Expected Number of Customers in Bar (a)					40.5
Average stay in hours (b)					2
Occupied Capacity (a)*(b)					81
Expected Number of Customers in Dining Room (a)					72
Average stay in hours (b)					1
Occupied Capacity (a)*(b)					72
No. of Bar Customers at any point (a)					81
No. per Car (b)					1.5
Parking Spaces used (a)/(b)					54
No. of Dining Room Customers at any point (a)					72
No. per Car (b)					3
Parking Spaces used (a)/(b)					24
Area		Capacity	Expected Occupancy	Excess/ (Shortage)
Bar		64	81	-17
Dining Room		110	72	38
Parking		90	78	12
There would be a capacity constraint in the Bar Area & the capacity needed to overcome the constraint would be 17

2-b
Bar patrons			32
Average Occupancy in hours			2
Occupancy Level per hour			64
Total Occupancy per day			256
Dining Room patrons			72
Average Occupancy in hours			1
Occupancy Level per hour			72
Total Occupancy per day			288
Expected Throughput margin
Area	Price	Cost	Margin	Occupancy	Daily Margin	Monthly
Bar	$         8	$         2	$         6	256	$   1,536	$ 39,936
Dining Room	$       21	$         4	$       17	288	$   4,896	$127,296
Total					$   6,432	$167,232
Daily Expected Throughput Margin						$    6,432
Monthly Expected Throughput Margin(26 days )						$167,232