NEAR-EMPTY RESTAURANTS AND OFF-SEASON MINIATURE GOLF

A CASE STUDY ON

Prepared by :-

Mehul Rasadiya Shailesh Hirapara Manan KhambholiyaVivek Damani Bhargav Pokar

Ms. Rupal Bhatt

Guided by :-

Submitted to :-

K.K. Parekh Institute of Management Studies (Amreli)

NEAR-EMPTY RESTAURANT

SUMMARY

A restaurant for lunch and found time almost empty because The restaurant even bother to stay not open.

It might seem that the revenue from the few customers could not possibly cover the cost of running the restaurant.

MACRO PROBLEM

A restaurant is not open in lunch time.

owner must keep in mind the distinction between fixed and variable costs.

These costs are sunk in the short run.

MICRO PROBLEM

Restaurant’s kitchen, equipment, tables, plates, silverware, and so on are fixed.

Shutting down during lunch would not reduce these costs.

In other words these costs are sunk in the short run

Variable costs the price of the additional food and the wages of the extra staff.

Variable costs are changeable.

ALTERNATIVES

The owner shuts down the restaurant at lunchtime only if the revenue from the few lunchtime customers fails to cover the restaurant’s variable costs.

Shut down if revenue from lunch < variable costs

Stay open if revenue from lunch > variable costs

RECOMMENDATION

Restaurant should be open in lunch time.

So more consumer come.

If the restaurant open there for Variable cost is more

Sunk cost is not recoverable in future.

CONCLUSION

Restaurant should be open in lunch time because make a revenue generate.

Off season miniature golf

SUMMARY

A miniature golf almost time empty because The even bother miniature golf to stay not open.

It might seem that the revenue from the few player could not possibly cover the cost.

MACRO PROBLEM

A miniature golf is not open in season time.

owner must keep in mind the distinction between fixed and variable costs.

These costs are sunk in the short run.

MICRO PROBLEM

Miniature golf’s costs land and building so on are fixed.

Shutting down during season time would not reduce these costs.

In other words these costs are sunk in the short run.

Variable costs are changeable.

ALTERNATIVES

The owner shuts down the miniature golf at season time only if the revenue from the few player fails to cover the miniature golf variable costs.

Shut down if •Revenue < variable costs

Stay open if •Revenue > variable costs

RECOMMENDATION

miniature golf should be open in lunch time.

So more player come.

If the miniature golf open there for Variable cost is more

Sunk cost is not recoverable in future.

CONCLUSION

miniature golf should be open in lunch time because make a revenue generate.