Ivey Publishing
Hospitality Services –– Eatery Challenges
Product Number:
9B16B002
Publication Date:
03/07/2016
Revised Date:
07/04/2018
Length:
11 pages (5 pages of text)
Product Type:
Case (Field)
Source:
Ivey
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.
Learning Objective:
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.
    Issues:
    Disciplines:
    Accounting
    Industries:
    Accommodation & Food Services
    Setting:
    Canada, Medium, 2015
    Intended Audience:
    Introductory
    Price:
    $5.30 CAD / $5.00 USD Printed Copy
    $4.50 CAD / $4.25 USD Permissions
    $4.50 CAD / $4.25 USD Digital Download
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