A local restaurant that specialises in freshly made pasta dishes for take away and delivery has seen a significant incre

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answerhappygod
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A local restaurant that specialises in freshly made pasta dishes for take away and delivery has seen a significant incre

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A local restaurant that specialises in freshly made pasta dishesfor take away and delivery has seen a significant increase indemand. The restaurant’s own staff currently do thedeliveries. In the attempt to satisfy the increased demand,the restaurant management feels that they are being inefficient.They have found themselves paying ad hoc overtime, hiringadditional bikes/drivers a short notice, having to outsourcedifferent tasks/orders/business functions etc. They also have asmall working team conducting various roles but with the increasedorders some mistakes are being made resulting in additional coststo rectify issues (e.g. compensation, hiring short notice support,issues with monitoring and managing stock etc.). They have a ratherbasic information system and mainly use spreadsheets (MS Excel) formost operating functions.
The company feel that they are in a position where they need toplan for the future and hire you as a consultant to consider meansin which they can reduce average costs in the long run so that theycan efficiently keep up with demand. Using your knowledge ofeconomies of scale and diseconomies of scale consider means inwhich the company can reduce average costs over the long run. (N.Byou should use diagrams to support your answer, you do not need toconsider actual costs but you should consider initiatives thatwould aid reducing average costs over the long run that would bebetter suited to this company)
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