A restaurant has a dining room and a coffee shop. The dining room has 110 seats
ID: 2555123 • Letter: A
Question
A restaurant has a dining room and a coffee shop. The dining room has 110 seats and the coffee shop has 60 seats. Total annual restaurant sales revenue next year is estimated at $1,248,000. Of the total annual sales revenue, records show, that 70% is normally contributed by the dining room and 30% by the coffee shop. Lunch sales revenue in the dining room contributes 40% and dinner sales revenue 60% of total dining room sales revenue. The dining room is open 52 weeks a year, 5 days a week for lunch and 6 days a week for dinner. The coffee shop is open 365 days a year for all meals. Coffee shop sales revenue is normally broken down as follows: breakfast 25%; lunch 55%; and dinner 20%. Seat turnovers in the two areas are: Dinins Room Coffee Shop Breakfast Lunch Dinner 1.5 1.0 2.0 0.6 a. Caculate sales revenue for dining room and coffee shop separately, showing the sales revenue for each meal period Sales revenue breakdown Dinine room: Lunch: Dinner: Coffee s b. Calculate average check for the dining room and coffee shop separately showing each meal Average Checks Lunch: Coffee s BreakfastExplanation / Answer
a) Total Annual Sales = $1,248,000
Sales for dining room:
Total sales revenue for dining room = $1,248,000 x 70% = $873,600
Sales from lunch = $873,600 x 40% = $349,440
Sales from dinner = $873,600 x 60% = $524,160
Sales for coffee shop:
Total sales revenue for coffee shop = $1,248,000 x 30% = $374,400
Sales from breakfast = $374,400 x 25% = $93,600
Sales from lunch = $374,400 x 55% = $205,920
Sales from dinner = $374,400 x 20% = $74,880
b) Average check amount = Total sales / (Number of seats x Number of operating days x Seat turnover)
Dining room:
Average check amount for lunch = $349,000 / [110 x (52 x 5) x 1.5] = $8.15
Average check amount for dinner = $524,160 / [110 x (52 x 6) x 1] = $15.27
Coffee Shop:
Average check amount for breakfast = $93,600 / [60 x 365 x 1.4] = $3.05
Average check amount for lunch = $349,000 / [60 x 365 x 2] = $0.773
Average check amount for dinner = $524,160 / [60 x 365 x 0.6] = $0.94