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# Bob's Cafe, a busy restaurant, has decided to stop serving

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Intern
Joined: 14 Mar 2013
Posts: 48
Location: United States
GMAT Date: 12-03-2013
WE: General Management (Retail)
Re: Bob's Cafe, a busy restaurant, has decided to stop serving [#permalink]

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24 Aug 2013, 07:31

e) Customers who order chicken tend to order dessert much more frequently than do customers who order steak.
» Less steak, more chicken = more costumers per hour.
» BUT, more chicken, more dessert = more time with a costumer, not necessarily more costumers per hour.

Imagine that:
1- steak generates \$5 as profit and the costumer takes 20 mins to finish and leave the restaurant.
2- chicken generates \$5 as profit and the costumer takes 15 mins to finish and leave the restaurant.
3- dessert generates \$1 as profit and the costumer takes +15 mins to finnish.

In one hour will have as profit \$15 from costumers eating just steaks and \$12 from costumers eating chicken + dessert.

Why not the other options:

a) Chicken takes only half as long to cook as steak in most instances
» Can't be used because there is no information about the time to get a dessert ready.

b) Chicken is less expensive than steak for Bob’s Café to purchase.
» Can't be used because there is no information about the selling price.

c) Chicken dishes can be sold for nearly as much as steak dishes.
» Can't be used because there is no information about the cost price.

d) The bistro next door to Bob’s Café will continue to serve steak.
» Not relevant because if the Bob's Café don't want people eating steaks in there, the steak eaters can go to somewhere else and give space to those who want chicken. Besides that we don't know if the next door bistro has good steak, if it is expensive, if it is clean enough, and other information that would really make the costumers to go to the bistro instead.
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Status: Miles to go....before i sleep
Joined: 26 May 2013
Posts: 17
Location: India
Concentration: Finance, Marketing
GMAT 1: 590 Q47 V25
Re: Bob's Cafe, a busy restaurant, has decided to stop serving [#permalink]

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24 Aug 2013, 11:48
E it is..

Plan : Serving as many customers as possible at each meal.

How the plan will fail: If the customer will order dessert and wait for some more time, the restaurant could not serve the number of people it must have estimated to make profits.
Manager
Joined: 06 Jun 2012
Posts: 142
Re: Bob's Cafe, a busy restaurant, has decided to stop serving [#permalink]

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26 Aug 2013, 03:42
I am not convinced with the OA. Though some people have reasoned that E will increase the turn around time. But the argument doesn't say much whether people take more time to eat steak or chicken. It only says it takes more time to cook. So E sounds unreasonable .
IMO it should be D. People come to eat steak hence the concern. So if the next door bistro is still serving steak chances are people will go there.
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Re: Bob's Cafe, a busy restaurant, has decided to stop serving [#permalink]

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26 Aug 2013, 22:23
summer101 wrote:
I am not convinced with the OA. Though some people have reasoned that E will increase the turn around time. But the argument doesn't say much whether people take more time to eat steak or chicken. It only says it takes more time to cook. So E sounds unreasonable .
IMO it should be D. People come to eat steak hence the concern. So if the next door bistro is still serving steak chances are people will go there.

In CR questions, you have to answer exactly what you are asked. The question clearly says "management’s plan to speed up customer turnover would be most undermined by which of the following". So you have to try to undermine the plan to speed up turnover i.e. whichever customers come, you have to try to serve them fast and get them out of the door as fast as possible.
So (D) is out of scope. What the other bistro is doing does not affect time management in Bob's Cafe.
(E) suggests that time management could be affected because people who eat chicken also order dessert. Hence the plan MAY not work. Note that you don't need to ruin the plan. You need to try to undermine it. You just need to bring in doubt.
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Joined: 05 Jun 2013
Posts: 9
Location: United States
Concentration: Operations, Marketing
GMAT 1: 740 Q50 V41
WE: Supply Chain Management (Consulting)
Re: Bob's Cafe, a busy restaurant, has decided to stop serving [#permalink]

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16 Sep 2013, 04:45
ellenhch wrote:
I was deciding between D and E. I ultimately chose E because if people order chicken and also order dessert, then turnover in customers would not increase. If anything, the cooking of the steak compared to cooking chicken and customers also ordering dessert results in...the same number of customers at the resturant. It weakens the turnover argument.

Then I thought if chicken costs \$15, and steak is \$45, even if I order dessert (which is \$10), my chicken + dessert = \$25, versus my steak of \$45. Using the same logic of same # customers above, then I wouldn't have increased profits either.

I feel that this answer best acknowledges both points of making less profits, and no change/decrease in customer turnover. But who knows! I'm not too sure about my answer!

Excellent explanation!!
If customers stay for dessert, they will stay for a longer time. Hence, turnover time will remain roughly the same!! I go with E as well.
Re: Bob's Cafe, a busy restaurant, has decided to stop serving   [#permalink] 16 Sep 2013, 04:45

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