Overview of the case:
Peppercorn Dining is a restaurant on the All American University campus and serves students who have purchased “meal plans” as well as cash-paying customers. A group of consultants from Square One Consulting was having lunch at Peppercorn when they bump into Drew, Peppercorn’s manager. One of the consultants, Erica, worked at Peppercorn as a student. Based on this chance meeting, Drew describes the situation at Peppercorn as he sees it and they eventually reach an agreement to do some operational auditing. After several days, the group of three consultants, Roger, Lynn, and Erica, collect data from managers at the restaurant, representatives from the parent dining organization for the university, and from various student, full time, and temporary employees. Their interviews cover various operations functions, including serving, the kitchen, cashiers, dishwashers, and supplies.
Toward the end of the first day of observations and interviews, Erica describes a new development, the announcement that