Average time of serving and eating or total servicing time of food is 90 minutes. Due to this reason, companies cannot turn tables rapidly. It can lead to customer dissatisfaction because low servicing time or dinnertime cannot give them comfort as a result the number of customers arriving can decrease in restaurants. In addition, customers want to spend some time with their family and friends because of this reason they want to spend a certain period or time in a hotel. On the other hand, decreasing customer and customer satisfaction can have a negative impact on revenue.

Table 2: Waiting Period

Waiting period of parties refers to how much time parties need to wait before entering the dining area. It has been identified from table 2 that the waiting period for customers starts from 2 pm and after the 9:30 period there is no waiting. Maximum waiting parties are 14 and minimum waiting parties are 1. Maximum waiting time for parties is 45.5 minutes and minimum waiting time for parties is 3.5 minutes. Peak waiting time is between 8;15 to 8:45 pm.

Balking customers are identified as the customers who chose not to wait in line/queue after being advised of the wait time; they leave the restaurant immediately. The cost of balking customers is higher than that of reneging customers. Maximum balking customers may be new customers for this reason they do not want to wait in a queue rather than move into another hotel. In addition, it can be said that the company lost the opportunity to create a new customer and they may not return to this hotel in case they like another one. On other hand, reenergizing customers can have interest in the restaurant due to this reason they tackle the decision to wait and they can come back into the restaurant further. Due to this reason cost balking is much higher and large numbers of balking have a negative impact on the company.

Groupon and early bird discounts are two promotional tactics that companies offer for their customers. Primary purpose of management behind these two promotions are to increase the number of customers at non peak hours and reduce balking at peak periods. According to case study it can be easily said that promotional methods solve one purpose or number of customers has been increased at non peak period. These two promotional tools failed to reduce bullying at the peak period because the number of waiting and balking was still the same as earlier.

Break-even analysis is a method of financial calculation which evaluates cost of new business service against sell-off price for determining at which company can reach a breakeven point. Break Even point is a position where companies do not earn profit and loss both. According to the opinion of direction they recover food related costs and some are fixed from 120 AUD. it implies that restaurants do not receive all fixed assets from this price. It implies that restaurants make losses at this price range. Company failed to reach breakeven position by Groupon option because they faced loss. In addition, restaurants need to spend an amount on Groupon options and they may fail to recover that also.

· Management of the company can increase the price of the coupon and the price must be set based on breakeven.

· Restaurants can face financial loss for this coupon because the company failed to recover all their money from this coupon for this reason they need to focus on recovery of fixed cost.

· Restaurants can sell this coupon through their own website which can reduce their other cost.

· Restaurants can offer complimentary drinks for waiting people.

· Restaurants can arrange online food delivery systems.

· They can also order & pick facilities for customers.

· They can install TV monitors for playing news, sports and so on.

· Management can organize game facilities along with gifts to keep their customers engaged without being bored.

This report has discussed the queue problem faced by Fat Angelo’s restaurant in Hong Kong. Peak dinner time of the hotels is 8 to 9:30 pm and many people come to the restaurant for their dinner. Several people move to another restaurant when they find the restaurant is full and they need to wait. Cost, revenue of balking has been measured and the waiting period of customers has also been calculated. Restaurants develop two new promotional methods for reducing balking and increase customers in non-peak hours and a report discussing that. Based on analysis suggestions have been provided for improvement of queue management service.