Snapshot
Sharing Facilities To Reduce Overhead Costs
A restaurant operator tackles the problem of unaffordable overhead expense by sharing use of the costly resources with an organization that has compatible operations
Goal
Reduce fixed or overhead costs of a restaurant operator
Problem
Everyday fixed costs become prohibitive if operating activity is not at full capacity
Sebir
Fixed or overhead costs decline by seeking out an analogous enterprise who can pay for sharing daily use of the assets responsible for the high overhead cost. For instance, a restaurant operator who operates in the evenings only and finds full-time leasing of the building an excessive cost burden, negotiates to share their premises with a mornings-only breakfast and brunch café who make use of essentially the same facilities up until 2pm Overhead costs become much more manageable when the same, total fixed expense is carried by two organizations instead of one
Breeding Hint 2
Think how you might identify categories of costs that you could partially allocate by agreement to other parties. This could improve your productivity and profitability and contribute to sustainability
Breeding Hint 1
Think about how you might negotiate an arrangement with someone with matching needs to yours, to share assets or facilities. This would be a way to achieve a lasting cost benefit