1. What are the key points related to the case background? A. One of the key points that stood out immediately upon reading the case was M. Peirre Jacquard’s reputation, ability and accomplishments from working in the restaurant business for ten years. These variables led to one of the more substantial investor’s (UGH) trust in the likelihood of profitability verses risk of failure. Shadowed by the fact that the restaurant was new and would serve as a centerpiece for public scrutiny and too, the investment was highly supported by a foreign investor group, there was still the prospect of reward due in part by the infamous and experienced support structure in that of UGH. The establishment will obtain assistance from cost control to sales experience. The goals, although not mutual, would be also be attained by the regard given to Jacquard's ability and subsequent thorough input into the development and implementation of business strategies.

B. A key aspect to take note of is that the budget provided by the Hotel’s accounting department did not provide for the cost of wine waiters, nor the cost of wine and liquor served in the restaurant. This is to Jacquard’s benefit. Because the wine cellar and liquor inventories are managed by the hotel, the restaurant does not have to endure product-level costs associated with these items. For instance, costs will not have to be incurred to follow state liquor guidelines, various inventory costs, insurance, maintenance and storage. In essence, the wine and liquor is viewed to be outsourced without the cost.

C. Facility level costs were listed in the monthly expense budget that included charges for laundry, cleaning, utilities, maintenance, depreciation and general administration. As denoted in the case profile, the restaurant did not have to pay directly for a number of these services shared with other hotel