Elucidate what do these numbers imply for the decision

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Reference no: EM1355330

A multi-concept restaurant incorporates two or more restaurants, typically chains, under one roof. Sharing facilities reduces costs of both real estate and labor. The multiconcept restaurants typically offer a limited menu, compared with full-sized, stand alone restaurants. For example, KMAC operates a combination Kentucky Fried Chicken (KFC)/ Taco Bell restaurant. The food preparation areas are separate, but orders are taken at shared point of sale (POS) stations. If taco Bell and KFC share facilities, they reduce fixed costs by 30%; however, sales in joint facilities are lower than sales in two separate facilities. What do these numbers imply for the decision of when to open a shared facility versus two separate facilities?

Reference no: EM1355330

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