As an employee, write an internal memo to your manager addressing the following:
ID: 2584593 • Letter: A
Question
As an employee, write an internal memo to your manager addressing the following:
For restaurants, identify the factor that you believe is most likely to limit potential output capacity.
Suggest several ways (other than raising prices) the business can maximize the contribution margin per unit of this limiting resource. (Hint: These businesses often do implement the types of strategies you are likely to suggest. Thus, your solution to this case may explain basic characteristics of businesses that you personally have observed.)
Explanation / Answer
Following are limiting factors and solution to overcome or maximize the contribution margin.
1) Good quality seasonal agricultural input - Seasonal agricultural inputs are not available in all season therefore to fulfil the order related to the seasonal inputs becomes difficult for restaurants.
To overcome this they can store these products in Warehouse and whenever any order receives then in that case restaurants can fulfil it without any difficulty. Like this flow of input would be available for whole year and output will not hamper.
2) Use of machineries and equipments - If restaurants use of old technology and machineries in making the products then you will not get output on timely basis and also will not get large quantity in short span of time therefore restaurant must use good machineries and technology in product making. Eg Atta/ Bread making machine.
3) Technology in processing the orders- Now a days you will find tabs and computers in taking orders, even kitchen is well verse with screen of what to make and ingrediance required for it. If we use technology then we can overcome limitation of wastage of time in communication
4) Quality staff and turnover ratio of employee - As you know turnover ratio of employee will increase if we do not give them facilities. New staff are not well versed with the habits, like and dislike of the people in a particular area therefore because of new staff less output as well as less quality.
5) Availability of warehouse - If warehouse or proper cold storage is not available then we can not store the perishable products and because of this no timely inputs. If no timely inputs then no output.
to overcome this restaurant must have good storage facility.
5) Internal transfer system - If no well managed internal transfer system then it also reduce the output.
For this internal transfer platforms, chain system, lift system must be introduced in restaurant.
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