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“Our House” restaurant is eliminating table-service

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“Our House” restaurant is eliminating table-service [#permalink]

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“Our House” restaurant is eliminating table-service from its casual dining restaurant in favor of prepared dinner boxes. The restaurant already fills every available seat during its operating hours, and the change to a dinner-box style will not reduce the available seats. Nonetheless, the restaurant's management expects revenue to increase as a result of the switch to the prepared dinner boxes without any concurrent change in revenue per customer or operating hours.

Which of the following, if true, provides the best reason for the expectation?

(A) One of the dinner boxes takes up less storage space than the space taken up by one of the large dishes typically used when serving table-service customers

(B) Diners eating out of a dinner box typically do not linger over dinner as long as diners who are served via standard table-service.

(C) Since the restaurant will eliminate table service for only part of the restaurant, it can continue to accommodate customers who do not wish to eat out of prepared dinner boxes.

(D) Few diners are likely to avoid the restaurant because of the new dinner-box style.

(E) The restaurant eliminating table-service would otherwise have to hire new waitors and waitresses at a greater expense due to new city regulations on wage


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[Reveal] Spoiler: OA

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Re: “Our House” restaurant is eliminating table-service [#permalink]

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New post 07 Sep 2013, 00:52
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ANALYZE THE STIMULUS:

"Our house" restaurant's new strategy is that it wants the customer turnover ratio is high. The reasons behind that are:
(1) Customers WILL SPEND LESS TIME on having dinner boxes than on table-service.
(2) The more customers it serves, the more revenue it gets.

Fact: "Our House” restaurant is eliminating table-service from its casual dining restaurant in favor of prepared dinner boxes.
Fact: The restaurant already fills every available seat during its operating hours, and the change to a dinner-box style will NOT reduce the available seats and operating hours.
Conclusion: The restaurant's management expects revenue to increase as a result of the switch to the prepared dinner boxes.

Which of the following, if true, provides the best reason for the expectation?

ANALYZE EACH ANSWER:

(A) One of the dinner boxes takes up less storage space than the space taken up by one of the large dishes typically used when serving table-service customers
Wrong. Out of scope. Nothing about "storage space".

(B) Diners eating out of a dinner box typically do not linger over dinner as long as diners who are served via standard table-service.
Correct. This is exactly what the management wants. It wants to increase the number of customers having dinner at the restaurant. If those who have dinner box spend time as much as do people who have table-service, the strategy will fail (Because the number of customer does not increase).

(C) Since the restaurant will eliminate table service for only part of the restaurant, it can continue to accommodate customers who do not wish to eat out of prepared dinner boxes.
Wrong. Out of scope. The argument does not say the restaurant eliminate table service for only part....

(D) Few diners are likely to avoid the restaurant because of the new dinner-box style.
Wrong. SHELL GAME. Few people are likely to avoid the restaurant ==> the current number of customers may NOT decrease. BUT it does not guarantee the number of customers will INCREASE (the goal that the management wants). Thus, D does not strengthen the argument.

(E) The restaurant eliminating table-service would otherwise have to hire new waitors and waitresses at a greater expense due to new city regulations on wage
Wrong. Out of scope. Nothing about "hire new waitor and waitress".

Hope it helps.
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Re: “Our House” restaurant is eliminating table-service [#permalink]

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New post 09 Sep 2013, 10:11
pqhai wrote:
ANALYZE THE STIMULUS:

"Our house" restaurant's new strategy is that it wants the customer turnover ratio is high. The reasons behind that are:
(1) Customers WILL SPEND LESS TIME on having dinner boxes than on table-service.
(2) The more customers it serves, the more revenue it gets.

Fact: "Our House” restaurant is eliminating table-service from its casual dining restaurant in favor of prepared dinner boxes.
Fact: The restaurant already fills every available seat during its operating hours, and the change to a dinner-box style will NOT reduce the available seats and operating hours.
Conclusion: The restaurant's management expects revenue to increase as a result of the switch to the prepared dinner boxes.

Which of the following, if true, provides the best reason for the expectation?

ANALYZE EACH ANSWER:

(A) One of the dinner boxes takes up less storage space than the space taken up by one of the large dishes typically used when serving table-service customers
Wrong. Out of scope. Nothing about "storage space".

(B) Diners eating out of a dinner box typically do not linger over dinner as long as diners who are served via standard table-service.
Correct. This is exactly what the management wants. It wants to increase the number of customers having dinner at the restaurant. If those who have dinner box spend time as much as do people who have table-service, the strategy will fail (Because the number of customer does not increase).

(C) Since the restaurant will eliminate table service for only part of the restaurant, it can continue to accommodate customers who do not wish to eat out of prepared dinner boxes.
Wrong. Out of scope. The argument does not say the restaurant eliminate table service for only part....

(D) Few diners are likely to avoid the restaurant because of the new dinner-box style.
Wrong. SHELL GAME. Few people are likely to avoid the restaurant ==> the current number of customers may NOT decrease. BUT it does not guarantee the number of customers will INCREASE (the goal that the management wants). Thus, D does not strengthen the argument.

(E) The restaurant eliminating table-service would otherwise have to hire new waitors and waitresses at a greater expense due to new city regulations on wage
Wrong. Out of scope. Nothing about "hire new waitor and waitress".

Hope it helps.


Hi pqhai,

I have a doubt with D.
If few diners will avoid the restaurant then the revenue will decrease, as restaurant will serve less customers...
"BUT it does not guarantee the number of customers will INCREASE (the goal that the management wants)"
Could not get your point.

Can you explain in details.

THanks,
Jai
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HEXAGON Theory ---> http://gmatclub.com/forum/hexagon-theory-tips-to-solve-any-heaxgon-question-158189.html#p1258308

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Re: “Our House” restaurant is eliminating table-service [#permalink]

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New post 10 Sep 2013, 00:35
jaituteja wrote:

Hi pqhai,

I have a doubt with D.
If few diners will avoid the restaurant then the revenue will decrease, as restaurant will serve less customers...
"BUT it does not guarantee the number of customers will INCREASE (the goal that the management wants)" ==>My point is the number of customers will NOT increase.
Could not get your point.

Can you explain in details.

THanks,
Jai


Hi Jai.

The goal of the management is to increase the number of customers as many as possible, correct? If the number of customers does NOT increase, the strategy fails.

(D) Few diners are likely to avoid the restaurant because of the new dinner-box style.
D says that "few dinners will avoid the restaurant", ==> The number of customers decreases but NOT too many. The revenue may stay the same, or decrease just a little bit. But "few dinners will AVOID the restaurant" does not mean the number of customers will increase.

For your doubt, please my highlighted part above.

Hope it's clear.
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Re: “Our House” restaurant is eliminating table-service [#permalink]

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New post 29 May 2015, 04:19
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“Our House” restaurant is eliminating table-service from its casual dining restaurant in favor of prepared dinner boxes. Note, it is completely eliminating, not partially The restaurant already fills every available seat during its operating hours, and the change to a dinner-box style will not reduce the available seats. Nonetheless, the restaurant's management expects revenue to increase as a result of the switch to the prepared dinner boxes without any concurrent change in revenue per customer or operating hours.If seats remian occupied at all times, work hours are the same yet revenue increases, it can only mean that more customers come and go. So for the same time and same number of seats, more customers mean more revenue

Assumption: Dinner Boxes will allow more customers to eat at the restaurant. It means that each customer wont take as long as they used to when they were served by waiters. Look for an answer choice that reflects this Idea


Which of the following, if true, provides the best reason for the expectation?

(A) One of the dinner boxes takes up less storage space than the space taken up by one of the large dishes typically used when serving table-service customersNo such information provided or inference possible. Dinner Boxes maybe large for all you know!

(B) Diners eating out of a dinner box typically do not linger over dinner as long as diners who are served via standard table-service.Correctly captures the more customers/working hours assumption

(C) Since the restaurant will eliminate table service for only part of the restaurant, it can continue to accommodate customers who do not wish to eat out of prepared dinner boxes. Incorrect Information provided. All service is migrated to dinner boxes, not some!

(D) Few diners are likely to avoid the restaurant because of the new dinner-box style. This would mean less revenue. Argues against the conclusion and weakens it. Incorrect

(E) The restaurant eliminating table-service would otherwise have to hire new waitors and waitresses at a greater expense due to new city regulations on wageThis might mean the revenue stays the same and is incorrect

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Re: “Our House” restaurant is eliminating table-service [#permalink]

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New post 01 May 2016, 08:42
Option B , good explanations above !
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Re: “Our House” restaurant is eliminating table-service [#permalink]

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New post 19 Nov 2017, 10:15
I still have one issue with this question. Why is E incorrect?

The way I understood the premise

1) Complete elimination of Table Service - This implies no waiters (Waiting costs are one of the biggest costs with table seating places)
2) The stimulus mentions that the available seating will not go away, implying those chairs and tables will still be there

When I combine them, it appears that management wants to get rid of waiters and the reduce the waiting costs, which has increased because of new wage mandate.(In E)

--> So moving away from a table service restaurant to dinner box will generate more revenue, thus E.

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“Our House” restaurant is eliminating table-service [#permalink]

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New post 19 Nov 2017, 13:30
alnewton wrote:
I still have one issue with this question. Why is E incorrect?

The way I understood the premise

1) Complete elimination of Table Service - This implies no waiters (Waiting costs are one of the biggest costs with table seating places)
2) The stimulus mentions that the available seating will not go away, implying those chairs and tables will still be there

When I combine them, it appears that management wants to get rid of waiters and the reduce the waiting costs, which has increased because of new wage mandate.(In E)

--> So moving away from a table service restaurant to dinner box will generate more revenue, thus E.

" the restaurant's management expects revenue to increase as a result of the switch to the prepared dinner boxes without any concurrent change in revenue per customer or operating hours." -is a hint enough to suggest that our goal is to increase the sales without impacting other fixed expenses such as that incurred by waitressing.
"Availability of seats" directly points to show how the goal should be achieved. Only B suggests that the new idea of boxes will increase the availability of seats as other customers won't linger long over the tables as they used to do earlier.
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