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Is a game store necessary?
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<blockquote data-quote="Nagol" data-source="post: 6941863" data-attributes="member: 23935"><p>Every retail environment requires certain revenue per square foot to remain in operation. A restaurant typically gets this revenue by effectively "renting" table space by charging for consumables like food.</p><p></p><p>Work out the operational costs and calculate the necessary "rent" per table.</p><p></p><p>How much "rent" is earned depends on three things: how much more the average table pays than the food costs, how many tables are in use, and how many uses each table provides in a day. The first is pretty set by menu and pricing and I won't address it further.</p><p></p><p>Putting a store in front of the restaurant attacks the second. How many tables are being surrendered? Are those tables likely to be empty anyway? Do you think store patrons are likely to fill empty tables in the restaurant? How much will the store cost to operate (staffing, inventory, and equipment)? How much revenue will the store generate? If the store costs at least as much as it will generate then it would only make sense if you feel the attraction of the store will increase patronage at the restaurant and the restaurant isn't running at the reduced table count capacity already.</p><p></p><p>Providing board games for patrons attacks the third. How much extra time will the average table take? Will the increase in extra time be compensated by filling vacant tables? How many fewer turnovers can be expected in a day? Will the games attract people to fill tables that would otherwise be empty?</p></blockquote><p></p>
[QUOTE="Nagol, post: 6941863, member: 23935"] Every retail environment requires certain revenue per square foot to remain in operation. A restaurant typically gets this revenue by effectively "renting" table space by charging for consumables like food. Work out the operational costs and calculate the necessary "rent" per table. How much "rent" is earned depends on three things: how much more the average table pays than the food costs, how many tables are in use, and how many uses each table provides in a day. The first is pretty set by menu and pricing and I won't address it further. Putting a store in front of the restaurant attacks the second. How many tables are being surrendered? Are those tables likely to be empty anyway? Do you think store patrons are likely to fill empty tables in the restaurant? How much will the store cost to operate (staffing, inventory, and equipment)? How much revenue will the store generate? If the store costs at least as much as it will generate then it would only make sense if you feel the attraction of the store will increase patronage at the restaurant and the restaurant isn't running at the reduced table count capacity already. Providing board games for patrons attacks the third. How much extra time will the average table take? Will the increase in extra time be compensated by filling vacant tables? How many fewer turnovers can be expected in a day? Will the games attract people to fill tables that would otherwise be empty? [/QUOTE]
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