Question-

A multiconcept restaurant incorporates two or more restaurants, typically chains, under one roof. Sharing facilities reduces costs of both real estate and labor. The multiconcept restaurants typically offer a limited menu, compared with full-sized, stand-alone restaurant. For example, KMAC operates a combination Kentucky Fried Chicken (KFC)/Taco Bell restaurant. The food preparation areas are separate, but orders are taken at shared point-of- sale (POS) stations. If Taco Bell and KFC share facilities, they reduce fixed cost by 30%; however, sales in joint facilities are 20% lower than sales in two separate fatalities. What do these numbers imply for the decision of when to open a shared facility versus two separate facilities?