Case study on Fat Angelo’s Italian Restaurant of Management opertaions technology|Course hero helper

Posted: February 28th, 2023

Read the Fat Angelo’s Italian Restaurant case study located in the Case Study folder. This is a team exercise. You will compile your answers in a Microsoft Word document following APA writing standards.

1) Summarize the problem identified in the case study.

2) Using the data provided in the case and the information in the exhibits provided at the end of the case:

a) Quantify the lost revenue due to customers balking.

b) Identify potential bottlenecks to turning tables more rapidly.

c) Calculate the customer wait time for each time period – See Exhibit 4.

d) Calculate the impact of balking customers on Fat Angelo’s bottom line (This is different that the lost revenue you noted in 2a).

e) Evaluate the impacts of the Groupon and early-bird discounts.

f) Perform a break-even analysis for the Groupon option.

g) Would you recommend that Douglas utilize Groupon to address his problem? Explain your answer.

h) What recommendations would you provide Douglas to enhance the customer waiting experience? Justify your recommendations.

These should be compulsorily identified –

• An accurate summary of the case study
• Correct identification of bottlenecks
• Accurate calculation of wait times.
• Accurate assessment of balking custom
• Accurate Groupon Assessment
• Viability of recommendations

SOLUTION

1. Problem Summary: Fat Angelo’s Italian Restaurant is experiencing significant revenue loss due to customers leaving without being seated, commonly referred to as “balking.” The restaurant owners are concerned about the negative impact on their business and are looking for ways to address the issue Data Analysis: a) Lost Revenue due to customers balking: According to the case study, the average check per customer is $20, and the restaurant serves approximately 200 customers per day. If 10% of the customers leave without being seated due to balking, the lost revenue per day is: Lost revenue = 200 customers x 10% balking x $20 per customer = $400 per day Potential bottlenecks to turning tables more rapidly: The case study identifies two potential bottlenecks that contribute to slow table turnover: food preparation and cleaning tables. The owners should consider strategies to address these bottlenecks, such as optimizing kitchen workflows or hiring additional staff to expedite table cleaning.