Reference no: EM133071495

A local restaurant has struggled throughout the pandemic and lockdowns, and has now chosen to transform into a private dinner club in order to decrease the volatility of its revenue. The club's concept is that members pay a membership fee that allows them to one meal each month for two people. The restaurant believes that they can make the same profit as a typical full night, but the memberships will be cheaper so that customers will register and 'get a deal.' They think that the restaurant will generate money if individuals (1) acquire memberships and have to dine on days that are normally not crowded, and (2) buy more memberships than there are time slots since people may not come to eat during some months. To assure (2) that they are selling more subscriptions than they could possibly service if everyone sought to book every month.

1. The owner informs you, "Since both the consumer and the restaurant benefit, this is a successful business model." Do you agree? If so, why or why not? Before you make a decision, be sure you've looked at both sides.