Question

Walls Tavern is an 80-seat operation with a seat turnover rate of 1.7 for lunch and 1.5 for dinner. The average check for lunch is $8.50, and dinner is $12.00. Assuming they are open 6 days per week (52 weeks in a year), calculate the following:

a. Annual sales for lunch and dinner.
b. You calculated guest count per period in the previous question. No need to recalculate them.

Answer 1

Walls Tavern's annual sales for lunch and dinner can be calculated by multiplying the number of seats, seat turnover rate, average check, days of operation, and weeks in a year. The guest count per period can be calculated by multiplying the number of seats by the seat turnover rate.

Step-by-step explanation:

To calculate the annual sales for lunch and dinner at Walls Tavern, we need to multiply the number of seats by the seat turnover rate and the average check for each meal.

a. Annual sales for lunch = 80 seats * 1.7 turnover rate * $8.50 average check * 6 days * 52 weeks = $50,232

Annual sales for dinner = 80 seats * 1.5 turnover rate * $12.00 average check * 6 days * 52 weeks = $69,888

b. To calculate the guest count per period, we need to multiply the number of seats by the seat turnover rate.

The guest count per period for lunch = 80 seats * 1.7 turnover rate = 136

The guest count per period for dinner = 80 seats * 1.5 turnover rate = 120