The restaurant is strategically located such that it has potential to serve 750 customers per day as opposed to the curr

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The restaurant is strategically located such that it has
potential to serve 750 customers per day as opposed to the current
500 customers per day due to restrictions imposed by space, and
slow and inefficient process. The restaurant sells its meals at R60
which includes a mark-up of 50% on material costs. The restaurant
currently employs a total of 30 employees as follows.
• Tellers/Receptionists – 8
• Order inspectors – 5
• Collections – 5
• Production – 10
• Queue controllers – 2
The restaurant operates every day of the week with each employee
earning R5 000 per month 2 A recent market survey has shown that
demand for food from the restaurant will grow by 5% per annum with
the cost of inputs increasing by 10% per annum including labour
costs. The selling price is projected to increase by 7.5% per
annum
Problem identification:
The traditional means of taking meal orders has led to
overcrowding in many South African restaurant. There are human
errors in capturing and processing orders that has led to losses.
Human errors and overcrowding are the major challenges of
traditional system in restaurant business.
Identified solution:
Automate the sales, production, and order collection system in
restaurant business in South Africa. The information given below is
the indicative impact that automation will have.
Items required
Initial investment: R2 000 000 including installation costs
Vibration Gadgets, ordering flat screen monitors and upgrade the IT
system by hiring IT specialists who will monitor and maintain the
AP. Design life of all equipment is given as 5 years. Maintenance
costs average 20% of initial cost per year. 10% of employees will
be laid off due to automation of the processes.
PLEASE DO THE CALCULATIONS FOR ME