A multiconcept restaurant incorporates two or more restaurants, typically chains

Question

A multiconcept restaurant incorporates two or more restaurants, typically chains, under one
roof. Sharing facilities reduces costs of both real estate and labor. The multiconcept restaurants
typically offer a limited menu, compared with full-sized, stand-alone restaurants. For example,
KMAC operates a combination Kentucky Fried Chicken (KFC)/Taco Bell restaurant. The
food preparation areas are separate, but orders are taken at shared point-of-sale (POS) stations.
If Taco Bell and KFC share facilities, they reduce fixed costs by 30%; however, sales in joint
facilities are 20% lower than sales in two separate facilities. What do these numbers imply for
the decision of when to open a shared facility versus two separate facilities?

Explanation / Answer

I mean to say that decision of when to open a shared facility versus two separate facilities depends on the sales and the sales do not directly imply profits Hope you get it !

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.