Graded Homework

Settings/night: The average number of place settings, or places where a guest could sit at any given point in time. The dishes and flatware are, of course, replaced between guests. This number is averaged over time, because the tables can be rearranged to accommodate parties. It’s also not the same thing as seats, because bench seating can accommodate more or fewer guests, depending upon conditions.

Guests/night: The average number of guests served between opening and closing, per night.

Returns/night: The average number of guests (per night) who have patronized the restaurant at least once in the previous month. This is determined from credit card records.

Income/night: The average total payments received from guests, minus operating expenses, per night.

Here are the operations numbers.

Before renovation After renovation

Settings/night 10 25

Guests/night 20 55

Returns/night 1 3

Income/night 1000 3200

Calculate the following productivity numbers. Show your work.

Productivity units Before renovation After renovation Gain (%)

Guests per setting ? ? ?

Returns per setting ? ? ?

Income per setting ? ? ?

Which of the gains would you consider most important? Least important? Why?