Zume Pizza uses a combination of robots, artificial intelligence (AI), and GPS in its food trucks to deliver pizzas to customers’ houses just as the pizza is finished baking. Pizzas are actually prepared and baked in the Zume pizza truck by an employee assisted by robots. Zume Pizza started operations in April 2016 and is currently […]
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How would replacing a tattoo artist with a robot change the cost structure at a tattoo studio?
September 22, 2016 
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French artists Pierre Emm and Johan da Silveira have developed a prototype of a tattoo robot during an Autodesk-sponsored Pier 9 residency in San Francisco. There are several steps involved in the tattooing process when performed by a robot. First, a 3D scan of the targeted body part has to first be made. The tattoo […]
Continue readingWhat costs are relevant when pricing a cargo ship cruise?
November 19, 2015 0 Comments
Challenging economic conditions in several countries have pushed freight ship companies to look for additional sources of revenues in addition to the revenue generated by hauling freight across the ocean. In recent years, one additional source of revenue for these freight companies has been to take on cruise passengers in addition to regular cargo. Generally […]
Continue readingWhat happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?
March 13, 2015 0 Comments
Sports Illustrated announced in late January 2015 that it would be laying off all six of its staff photographers. Instead, it will be using freelance photographers around the world. Sports Illustrated is one of 90 magazines owned by Time Inc. (TIME). Published 56 times a year, Sports Illustrated is read by over 23 million people […]
Continue readingHow would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?
February 27, 2015 0 Comments
Amazon is a huge retailer, but it still struggles to compete against bricks-and-mortar stores when customers want the item “right now.” Amazon is currently testing two options to provide one hour deliveries: drones and bike messengers. A drone is an aircraft that flies without a human on board. It may be operated via remote control, […]
Continue readingWhat impact do lower fuel costs and other changes have on American Airline’s break even point?
January 7, 2015 0 Comments
American Airlines Group (AAL), the world’s biggest airline, has been reporting record profits in recent quarters. United Continental Holdings and Southwest Airlines also reported record profits. Part of what has contributed to the record profits has been the decline in the cost of oil. The price of oil has fallen during 2014; we are spending […]
Continue readingHow does the change in selling price impact the break even point for Amazon’s Fire Phone?
November 18, 2014 0 Comments
In July of 2014, Amazon came out with a smartphone, the Amazon Fire phone. The phone sports 3-D visuals and is tightly integrated into the Amazon ecosystem. For example, the Firefly feature can scan and recognize over 70 million products that the consumer is able to purchase or look up immediately from his or her […]
Continue readingHow does the use of a robotic shopping assistant impact the breakeven point and operating leverage at Lowe’s?
November 12, 2014 0 Comments
Lowe’s, a U.S.-based chain of retail home improvement stores, is introducing a robotic shopping assistant into its Orchard Supply Hardware store in San Jose, California. The robot, called OSHbot, will greet customers and assist customers in finding products. In addition, the robot has one large screen on the front and one on the back. The […]
Continue readingHow does outfitting AMC movie theaters with recliners affect the company’s break even point and operating leverage?
July 18, 2014 0 Comments
AMC Entertainment Holdings Inc. is spending millions of dollars to install recliner-seating in its theaters. AMC Entertainment Holdings Inc. is outfitting about 1,800 of its nearly 3,000 auditoriums with recliners for a total cost of about $600 million. The recliners will remove up to two-thirds of the seating capacity in each theater, due to […]
Continue readingHow does automated technology in fast food restaurants change the cost structure, break even, and degree of operating leverage?
June 18, 2014 0 Comments
Change is rapidly occurring in the restaurant industry due to a combination of higher labor costs, increased technological capabilities, and other factors. Protesters across the world are calling for fast food restaurants to raise their wages, arguing that the current wages paid to workers are not enough to survive on. Various states and cities have […]
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