Executive SummaryOur team was engaged to advise on a business case involving a restaurant, The Mongolian Grill. Its owner, John Butkus, is contemplating renovation, hoping to add capacity and increase revenue. There are several scenarios at your disposal. One option is to add an extra food bar. The second option is to move the position of the cooking zone. You can also implement both options if you want. Our team made the appropriate financial calculations, as well as qualitative considerations. Our decision is that Mr. Butkus should choose to implement both options. The additional capacity is definitely needed and the demand to fill the capacity is also there. We have calculated the possible revenue that could be obtained in two sections: Low Additional Demand and High Additional Demand. The additional revenue generated in these two scenarios is $42,900 and $31,200, respectively. Furthermore, in both of these scenarios, the time required to pay the cost of the required expansions is less than a year. We've looked at a number of possibilities, both good and bad, and we think this is the best option. There's really no justification for not moving forward with the changes. They will result in a greater profit, both in the short and long term. Our analysis is included in the following document.ProblemMongolian Grill is a restaurant with a unique concept. It takes pride in not only offering good food, but also offering an original dining experience that leaves customers wanting to return. The restaurant uses four features to achieve this: a fun and interactive atmosphere, fresh and healthy food, unlimited quantities and customer involvement in the preparation of the meal. Restaurant owner John Butkus is trying to finalize operational decisions for one of his future restaurants, which will be located in Waterloo, Ontario. First, a brief explanation of how the Mongolian Grill restaurant works: Customers arriving at the restaurant are seated. A member of the service staff explains the concept to first-time diners and takes drink orders at the table. Customers then proceed to the food preparation area. They select the meat and vegetables they want from the food bar and place them in a bowl. Customers then move to the second bar, which contains sauces, oils and spices.
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