Hospitality Services –– Eatery Challenges
(5 pages of text)
The associate director of hospitality services at a large university had to address overcapacity at an on-campus eatery. The eatery was experiencing long lineups and severe bottlenecks, especially at its full-service coffee outlet. Seating capacity was also short of demand, and no additional space was available. The associate director also faced pressure from university administration to consider closing a nearby eatery as a result of its poor profitability, but doing so would put additional strain on the already overcapacity eatery. After examining profitability and completing a corporate assessment, the associate director expected to have a better idea of how to tackle the current capacity and profitability issues.
This case is suitable for use in an introduction to managerial accounting course. After completion of the case, students will be able to:
- Complete a brief industry, corporate, and consumer analysis.
- Conduct a sub-unit evaluation to understand the costs related to each unit’s contribution.
- Qualitatively analyze options for performance and profitability.
- Make recommendations from the viewpoint of the associate director of hospitality services.
Accommodation & Food Services
Canada, Medium, 2015
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