Behnihana

Improve Throughput with Batching

Batching is taking multiple small parties and grouping them together. This allows the restaurant to serve more people at a time and in turn positively improves throughput. Throughput is increased because this strategy takes advantage of the full capacity of the restaurant since now tables aren’t all partially full. Using batching is especially important during peak times when the volume is higher so the restaurant can take advantage of all the number of people entering their doors. The simulation shows that the nightly profit is higher using batching. The restaurant actually had loss of profits from not utilizing batching. In the batching scenario, the bar profit is lower, presumably because wait time at the bar is lower since more people are seated at once, however the dinner revenue is higher. The number of lost customers is also far less when using batching.

The disadvantage of batching could be the potential reaction from some customers. In the batching scenario, your party - if it is not large enough - is grouped with another party. Some customers may be dissuaded of being batched with another group that they do not know. At the same token, if your party is larger than 8, they may be separated.

Design the Bar

Nightly Profit Total Revenue Revenue Bar Revenue Dinner Use Batching Bar Size Rest Size

$242.38 $3,583.55 $963.55 $2,620.00 Yes 79 11

$214.79 $3,627.51 $1,160.51 $2,467.00 Yes 87 10

$213.56 $3,445.48 $752.98 $2,692.50 Yes 71 12

$155.61 $3,268.62 $553.62 $2,715.00 Yes 63 13

$121.80 $3,155.34 $403.34 $2,752.00 Yes 55 14

$80.46 $3,060.09 $308.09 $2,752.00 Yes 47 15

$48.55 $2,996.30 $244.30 $2,752.00 Yes 39 16

$20.82 $2,946.45 $194.45 $2,752.00 Yes 31 17

($3.32) $2,907.98 $155.48 $2,752.50 Yes 23 18

($55.66) $2,830.89 $125.39 $2,705.50 Yes 15 19

Out of all the scenarios, the optimum size of the bar for maximum profitability was having 79 bar seats and 11 restaurant...