Trevor Virgle Professor Zellerbach Benihana Challenge 1: How do you think a batching strategy affects throughput? Why? ◦I think that the batching affects the throughput of the company in a positive way. Grouping people in bunches and sitting them together is what keeps people moving instead of waiting in line. It gets people to come in to the restaurant and leave with the highest level of satisfaction possible.
Operates more efficient compared to the other typical US restaurants: Operation Cost | US Restaurant | Benihana | Efficient performance | Labor Cost | 30-35% | 10-12% | Low labor cost was driven by eliminating the need for a conventional kitchen | Food Cost | 38-48% | 30-35% | Simple menu resulted no waste. Cut food costs to between 30-35% | Beverage Cost | 30-35% | 20% | Managed to get an average of 20% of the beverage sales | 2. Having substantial repeat business (65.7%) and high number of recommendations and word of mouth publicity (67%). 3. Increase the proportion of the productive area: There is an effective reduction in space for kitchen and the same space can be used as the productive dining area.
This saves time significantly in the food, sauce, and oil preparation area, and provides more space to customers who are getting their food prepared. • Add more tables for more people to sit in the empty spots close to the entrance. This will allow having more seating in the restaurant and bring in more customers in busy days. Control & Feedback: • A weekly meeting will be arranged to evaluate how much time it will take for customers to have their food prepared in the new proposed design. • The management will keep Monitoring the restaurants progress and financial costs.
In order to keep the sales budget in the range desired by the owners there will need to be changes made to the menu. All of the items that are not selling very often like coffee and the pizza should be taken off because the sales for them are not high at all. If they offer more types of alcoholic beverages which are what is already bringing in high amounts of revenue for the club will get sales sky rocketing. Offering more kinds will get customers to buy more of them because it is a possibility for the customer’s favorite brand or drink to be on the menu. As far as food goes the owners need to ask all of their customers what they would prefer to have on the menu for them to buy if they get hungry while hanging out at Club
* * * At a restaurant, when ordering an entrée, you get to choose two side dishes from a group of five side dishes. People face tradeoffs. * You have to make a trade of which one you want more. * Instead of growing your own food and making other necessities you decide to specialize in a particular profession and purchase things, even things that you would have not been able to make yourself. Trade can make everyone better off.
One reason is because it’s priceless being that it is printed out on all our customer receipts. The second reason is because it will bring people back to our restaurant or at least consider it. The final reason is that it will bring customers here during lunch hours. For many restaurants, there slowest hours are during the day so we figure that giving them this coupon to use before 3PM any day of the week will give us busier lunch hours and higher revenues each day of operation. I’ve seen this idea used in many famous restaurants like Cheesecake Factory, Starbucks, fast food places and
In order to reach its goal of regaining the competitiveness in the industry, a restaurant management system must be implemented. Abate Restaurant Manager is an engagement, analytics, and tableside ordering platform that brings Saleforce.com, world class customer focus, infrastructure to the restaurant industry. This system offers lots of features like inventory management, manager monitor, point of sale table management, etc. which will all boost competitiveness and productivity of the
A fast casual restaurant provided quick-service dining (much like fast-food enterprises) but were distinguished by enticing menus, higher food quality, and more inviting dining environments; typical meal costs per guest were in the $7-$12 range. Some fast casual restaurants had limited table service and some were self-service (like fast-food establishments). Between January 1999 and December 2006, close to 850 additional Panera Bread bakery-cafs were opened, some company-owned and some franchised. Panera Bread reported sales of $829.0 million and net income of $58.8 million in 2006. Sales at franchise-operated Panera Bread bakery-cafs totaled $1.2 billion in 2006.
If Zappo’s displays an item, it is in stock. Once it is sold out, they remove it from the website- thus reducing customer frustration. They also have a 100% satisfaction guaranteed return policy, and can be returned within 365 days for a full refund. Zappos focuses on customer service, they develop relationships with their customers, including phone calls that last hours and sending pizzas to people’s houses! As for employees, they are treated just as well as the customers.
2. For the Lodging Division, we decided to include all 4 comparables (plus Marriott) given the similar nature of their businesses. Including all 4 comparables helps us reduce estimation error of beta. For the Restaurant Division, we decided to include 4 out of the 5 comparables given in the case. We eliminated Church’s Chicken because they have a gaming business and we thought this would disproportionately increase the margins for a restaurant business.