The restaurant is strategically located such that it has potential to serve 750 customers per day as opposed to the current 500 customers per day due to restrictions imposed by space, and slow and inefficient process. The restaurant sells its meals at R60 which includes a mark-up of 50% on material costs. The restaurant currently employs a total of 30 employees as follows.

Tellers/Receptionists 8

Order inspectors 5

Collections 5

Production 10

Queue controllers 2

The restaurant operates every day of the week with each employee earning R5 000 per month 2 A recent market survey has shown that demand for food from the restaurant will grow by 5% per annum with the cost of inputs increasing by 10% per annum including labour costs. The selling price is projected to increase by 7.5% per annum

Problem identification:

The traditional means of taking meal orders has led to overcrowding in many South African restaurant. There are human errors in capturing and processing orders that has led to losses. Human errors and overcrowding are the major challenges of traditional system in restaurant business.

Identified solution:

Automate the sales, production, and order collection system in restaurant business in South Africa. The information given below is the indicative impact that automation will have.

Items required

Initial investment: R2 000 000 including installation costs Vibration Gadgets, ordering flat screen monitors and upgrade the IT system by hiring IT specialists who will monitor and maintain the AP. Design life of all equipment is given as 5 years. Maintenance costs average 20% of initial cost per year. 10% of employees will be laid off due to automation of the processes.

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