This brief will discuss the restaurant’s competitive priorities, define quality for the restaurant, analyze the costs of the restaurant’s process failures, and provide recommendations for improving processes and customer satisfaction. Analysis The weekday meal service process has established consistent quality, on-time delivery, and variety/flexibility as competitive capabilities (Krajewski et al, 2013). The weekday meal service needs 12 minutes to complete a meal after being ordered (Krajewski et al, 2013). The weekend meal service, during peak times, needs more than 20 minutes to deliver good meals to the customers (Krajewski et al, 2013). The weekend meal service process performs at higher volumes and is unable to meet the consistent quality, and on-time delivery capabilities from the weekday service process.
|Name: Lauren Reed |Date: 3/31/15 | Graded Assignment Practice: The Loan Ranger Answer the following questions based on what you have learned. You may need to search for an online loan calculator to answer the questions. (10 points) |Score | | | 1. The owners of a successful restaurant want a loan for $50,000 to renovate the kitchen and expand the dining room. They expect that the extra tables will add between $2,000 and $5,000 to the restaurant’s monthly revenue.
Therefore, Cathy developed a unique franchise opportunity that he deployed first to malls and then to stand alone stores based on his core values of conservatism, encouraging corporate social responsibility, and entrepreneurship (Cathy, 2013). It allowed others to cover the majority of the variable costs of running a restaurant, while he assumed much of the fixed costs of building the restaurant so he could retain more control than competitors. Unique Franchise Model After making it through a strenuous interview process, a person can become a Chick-fil-a franchisee or “Operator” for only $5,000 which is substantially lower than the industry average (Cathy, 2013).What Chick-fil-A gives up in terms of initial fees, it makes up for in other areas. In general, Chick-fil-A requires operators to cover between $250,000 and $900,000 for the location's variable costs such as inventory, as well as fixed costs such as equipment rental, insurance, location leasing fees, and other operation fees (Malloch and Grem, 2010). This allows the corporation to have minimal variable costs as most are covered by Operators.
He brings up a lot of arguments and points in his book and one he uses is Logos to better his points. One specifically he uses is his point on how the fast food industry is the largest group by far that employs low wage workers. He says no skill required and I really like this “The annual turnover rate in the fast food industry is about 300 to 400 percent. The typical fast food worker quits or is fired every 3 to 4 months” (90). Schlosser betters his argument with the use of strong facts and gives the points strength.
EXECUTIVE SUMMARY Ruth’s Chris Steak House (Ruth’s Chris) has identified that it needs to accelerate its development plan and expand their footprint through both company-owned and franchised locations to increases sales and revenues. As of December 2005, 41 of the 92 locations were company-owned and 51 were franchisee-owned, including all 10 of the international restaurants. Ruth’s Chris franchisee requirements and costs eliminate many prospects resulting in the 51 franchisee-owned restaurants being owned by just 17 franchisees. There is debate within Ruth’s Chris senior management team about the need and desire to grow its international business however the market development model (more of the same restaurants in new markets) has been determined to be the path to increased revenue. Ruth’s Chris needs to determine the best strategy to implement its expansion into new markets.
As of 2012 Chick-fil-a has a total of 1,600 restaurant locations, making them the second largest fast food restaurant chain in the U.S. (Chick-fil-a, 2012). This company falls under the quick service restaurant field and under the monopolistic competition market, which comes with a lot of different competitors. Chick-fil-a does not have too many direct competitors in the chicken fast-food industry, but when looking at the fast food industry as a whole they have quite a few competitors. When it comes to selling their main, and only product, chicken. Their main competitor would be KFC who is ranked number one in the chicken field, and overall for the quick service field McDonalds ranks number one.
Porthos owners must decide whether they can handle the additional demand from the new restaurant chain. Although actual additional demand is not yet known, Porthos management has estimated that the new restaurant will require 250 lbs of bread per day. They also recognize that current demand can fluctuate from day to day and the estimate of additional demand is just that, an estimate. Assume employees work 8 hours per day. Bread must be packaged and shipped on the day it is produced.
Fast Food Nation: The dark side of the All-American meal Eric Schlosser Fast Food Nation is an eye opening book about the food Americans eat. The book talks about the history of the fast food, the food they cooked, what the service was like, and how expensive it was. Eric Schlosser talks about how the McDonald brothers first opened up their business in Pasadena, California. Now McDonalds is responsible for 90% of new jobs. Local business were losing their customers to the corporate businesses and being put out of business.
Strategy Analysis Acquisitions The first Turtle bay opened in Milton Keynes in 2010 with 18 more adding to the portfolio to date, they have investors from piper who invest in entrepreneurs with a presence in UK and a turnover of £5million, which is a competitive advantage for turtle bay as small Caribbean restaurants cannot compete with them as many cannot afford the capital required. (Witts,2015) Turtle bay intends to have acquired 20 more by 2019, although Turtle bay has had a success since opening its first restaurant, however there has been some criticism about the authenticity of the food offered which may have an impact on the organisation (Thompson,2017). The size of turtle bay restaurants has a huge contrast with smaller traditional
Capacity is the maximum rate of output from a transportation process (Pineault, 2012, p. 110). To find the capacity of the ordering process at the Swanky Hotel, it is best to break down each step: - The service manager takes orders by phone = 2 minutes per order = 30 orders per hour - The amount of time to prepare food = 16 minutes per order = 3.75 per hour - There are 4 chefs in the kitchen, so 3.75 orders per hour x 4 = 15 - If there is a drink order, then drink orders = 3 minutes to fill by 1 bartender = 20 orders per hour - Taking the order to the room and billing the guest = 20 minuters per waiter = 3 per hour - There are 6 waiters, so 3 orders per hour x 6 = 18 orders per hour The capacity for this process is the minimum of the capacity of each resource, therefore the capacity would be 15 orders per hour, as with 4 chefs in the kitchen and each one averaging 3.75 orders an hour, the kitchen can process 15 orders per hour. The bottleneck of any process is the most constraining resource, or the one with the smallest capacity (Pinealt, 2012, p. 111). The bottleneck in this case would the kitchen preparation time. Even though the manager is able to take up to 30 orders per hour, the kitchen is only able to handle half of the amount of orders in the same amount of time.