A multi$-$concept restaurant incorporates two or more restaurants, typically chains, under one roof. Sharing facilities reduces costs of both real estate and labor.Suppose that KMAC, a company that operates franchises locations from the YUM! Brands, Inc., wants to open a multi$-$concept Kentucky Fried Chicken $($KFC$)$ and Taco Bell. The single location reduces fixed costs across both locations by $30\%.$ Sales are lower by about $20\%$ than if the two locations were opened separately.

KMAC will open single$-$location, multi$-$concept restaurants as long as the company benefits relatively more from the from producing both KFC and Taco Bell items under one roof.