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The yearly P&L of a casual restaurant in Dubai
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
An illustrative casual dining restaurant in Dubai has 80 seats. It turns each seat 1.5 times at lunch and 2 times at dinner. The average guest spends AED 120 and the restaurant opens 360 days a year. Food and drink cost 30 percent of sales, labour 28 percent, rent is AED 1.2 million a year, and other costs are AED 1.5 million. What are its sales and profit?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Restaurant profit = sales minus prime cost minus rent minus other costs
- Covers per day = seats x turns per day
- Sales = covers x average spend x days open
- Prime cost = (food share + labour share) x sales
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Covers per day
What a strong candidate does: 80 seats x (1.5 + 2) turns.
Covers per day: 80 × (1.5 + 2) = 280
Step 2: Yearly sales
What a strong candidate does: 280 covers x AED 120 x 360 days, in AED thousands.
Sales (AED thousands): 280 × 120 × 360 ÷ 1,000 = 12,096
Step 3: Prime cost
What a strong candidate does: 30 percent plus 28 percent of sales.
Prime cost (AED thousands): 12,096 × (0.3 + 0.28) = 7,016
Step 4: Profit
What a strong candidate does: Sales minus prime cost, rent of 1,200, and other costs of 1,500.
Restaurant profit (AED thousands): 12,096 - 7,015.68 - 1,200 - 1,500 = 2,380
Step 5: Margin
What a strong candidate does: Profit as a share of sales.
Restaurant margin (percent): 2,380.32 ÷ 12,096 × 100 = 19.68
Step 6: If dinner turns fall to 1.5
What a strong candidate does: Covers fall to 240. Assume food stays at 30 percent of sales but labour and other costs stay the same in AED.
Profit with fewer dinner turns (AED thousands): 240 × 120 × 360 ÷ 1,000 × 0.7 - 12,096 × 0.28 - 1,200 - 1,500 = 1,171
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The restaurant earns about AED 2.4 million, close to 20 percent of sales. Losing half a turn at dinner cuts profit roughly in half, because staff and rent do not fall with covers. Filling seats at peak times is the first lever.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.