Sunset Grill at Blue - Case Study Example

Irish Gilbert (4) Analysis – apply operational models, content, and outside research to support your position; logically discuss options, implications and tradeoffs. Here you need to include a SWOT analysis. AnalysisMelhuish’s type of business is a franchise. While Melhuish has advantages as an independent franchise, he still must comply with the procedures and restrictions set forth by the franchisor. Melhuish’s business is based specifically on an established product and type of service.

The business also has the benefit of a pre-sold customer base, which would ordinarily take years to establish (International franchise association, 2014). Melhuish recognized that during the first year of operations and even when his franchise managed to break even, he was struggling and leaving money on the table. With new ideas, ready to implement before the summer will help reduce queues and get the operations fully on track. Data collection shows that the most burdensome queues are during the weekends.

To alleviate this, Melhuish is planning on hiring a part timer food runner. The food runner will deliver the food from the kitchen directly to the table, saving the servers time and energy. This addition to the staff, even on a part time basis, would increase daily table turn over by five to ten percent. Melhuish is considering on adding a menu boards around the restaurant. One would be above the open concept kitchen and the other would be electronic near the front entrance. Both boards would be strategically placed so that those waiting would have the option of looking over the menus prior to sitting down.

By the time the customers were seated, they would know what they wanted to order. This would reduce the amount of ordering time by up to 10 minutes. Melhuish believes the electronic menu boards could also be useful in promoting a few high-margin items.In response to customer complaints, Melhuish brainstormed the idea of allowing substitutions to certain menu items. Currently, the policy of no substitutions is strictly enforced. Data shows that allowing substitutions on certain menu items or during shoulder seasons would increase the preparation time from 5 minutes average to 6 minutes average.

This small amount of time, is not a very big change in comparison to the advantages of allowing certain substitutions and satisfying customers requests / complaints.Another way to help reduce wait times is to add additional seating to the restaurant. Melhuish is considering increasing capacity by converting the current 16 seats into benches to accommodate up to 25 people for larger parties. Outdoor seating is very seasonal and a way to be able to make use of the patio year round would be to purchase heaters.

This way on the cooler days and nights the patio could still be used, creating additional space during cooler months.The other issue that concerns Melhuish is the suggestion from the franchisor of putting in an insert that temporarily removes Sunset Burgers and Salads from the back flap of the menu, since they took the longest time to prepare. Melhuish knows these items represent the 15 percent of all food sales with margins of 50 percent per item, instead of an average of 70 percent for other items.

Melhuish believes that the back flap contains several lunch items and he is worried that this move would alienate certain patrons.This case shows intrinsic characteristics of service: customer participation, simultaneity, perishability, intangibility, and heterogeneity (Fitzsimmons, J.A. & Fitzsimmons, M.J., 2011). In operations systems, customers act as they need and with specific demands, making a challenge to match service capacity with demand. Over compensating for capacity demands also creates a problem.

There are only specific times that there are very high volumes of customers. By creating the additional space, means increased overhead that would have to be paid for during lower volumes times creating increased costs and in efficiency. In regards to the service staff, when not in high demand they are not scheduled saving costs. Solutions need to be found in order to satisfy customers and make it an enjoyable experience even when they need to wait more than 20 or 25 minutes in a line, or when they cannot even make changes to the substitution to the order.

The servicescape concept also plays a very important role. Melhuish, with his ideas of adding menu boards, changing the set up of the seats, and adding heater in the patio area, can use the physical environment to influence in the behavior and perception of the service.A SWOT analysis can also help in assessing the company’s situation:Strengths (S)It is a franchise, already strong in the market in the Toronto areaIt already has a base of customers.Other facilities serving breakfast in the area were scarceWeakness (W)Wait time is about 20 minutes or more.

There is a strict no-substitution policyRestaurant cannot be used at full capacity during winterOpportunities (O)Only one competitor: Cora’s restaurant.Install an electronic menu board so diners can peruse the menu while waiting in line.Since Sunset-at-Blue is operating in a tourist resort, should add more variety to the menuThreats (T)Other restaurants can attract, due to long wait timesLoss of Franchise if too much deviation from the normLoss of clientele because of no substitution policyS/O Based Strategies(Strategies that use strengths to maximize opportunities).

Since Sunset-at-Blue is a recognized franchise, and there is hardly any other breakfast diner in the Village, Melhuish should devise ways to stay on top, by enlisting the help of the Franchisor to build on its reputation with added value to the diner.W/O Based Strategies(Strategies that minimize weaknesses by taking advantage of opportunities). Hire another cook to take special orders only during peak seasonsS/T Based Strategies(Strategies that use strengths to minimize threats).Maintain excellent service and work on weaknesses to be the customers preferable location for breakfastW/T Based Strategies(Strategies that minimize weaknesses and avoid threats).

Set up coffee and tea “stations” where customers can serve themselves while they await their breakfast orders, this will alleviate some of the wait time; and customers can pass the time having coffee while waiting.ReferencesInternational franchise association, 2014. What are the advantages and disadvantages of owning a franchise? Retrieved on February 1st, 2014 from http://www.franchise.org//franchiseesecondary.aspx?id=52630MY PART(5) Recommendations and Conclusions – these should be your recommendations regarding how the organization should deal with the problem; they should be fully supported by the Analysis sectionThe organization should deal with this problem by adding menu boards around the restaurant and in this way the customers can look on the menu boards by waiting in the queue.

Once the customers will be seated they would know what they want to order which will reduce the ordering time up to 10 minutes. These menu boards outside the restaurant can also help in the promotion of the restaurant. My recommendation is to make a seating area outside the restaurants this can be helpful since most of the people like to sit outside and enjoy the cool breeze especially in the evening. It would be highly disastrous for the business to remove Sunset burgers and salads from the menu since it represents 15 percent of all food sales and by removing this from the menu we may lose some of our regular customers.

Wait time may also result from less staff to work at the restaurant. We must focus to optimize our staff so they can fulfill the needs of the customers more efficiently and quickly. Most people are willing to come at the restaurants if they will get in or out quickly. People don’t like to wait in queues (Giallanza, 2012). If our regular customers have a bad waiting experience they usually turn away with good. But if our new customer has such an experience they will not come back at the restaurant again or tell their friends about how horribly they were treated which can affect the image of the restaurant.

Self-service can be initiated for the customers as this will also reduce the waiting time of the customers (Restaurants manage wait times to improve service, 2011). Another recommendation is to hire a food runner. The purpose of hiring a food runner is that it will deliver the food directly from the kitchen to the restaurant table in this way the energy and serving time will be reduced. (Thueringer, 2014). We can also expand our seating area so can we can accommodate more people at our restaurants.

We can change the seat in the restaurants into benches in this way we can accommodate about 25 people instead of 16. We can also invest in technology so that we can improve the process of alerting the customers when their table is ready. About 16% restaurants used technology for managing table at their restaurants. By giving the customer freedom to wait where they want and how they want we can reduce their wait time and can increase the time they are willing to wait. A study shows that most people want to be notified on their cell phones instead of coaster pagers (Gregory, 2013).

We can also make announcements; send promotions, call or message to notify the customers that their table is ready. These are the recommendations that the restaurant can implement in order to solve the problems it is facing (Toporek, 2014). If the restaurant follows the above mentioned recommendations the restaurant can solve the restaurant problem of reducing the waiting time for the clients. ReferencesBibliographyRestaurants manage wait times to improve service. (2011, June 2). Retrieved February 5, 2015, from Market Watch: http://www.

marketwatch.com/story/restaurants-manage-wait-times-to-improve-service-2011-06-02Giallanza, C. (2012, August 29). Hungry for Improvement: Thermal Reduces Wait Time at Quick-Service Restaurants. Retrieved February 5, 2015, from Irisys: http://www.irisys.net/thermal-imaging-blog/bid/59151/Hungry-for-Improvement-Thermal-Reduces-Wait-Time-at-Quick-Service-RestaurantsGregory, J. G. (2013, October 8). Tech Helps Restaurants End the Painful Wait. Retrieved Febraury 5, 2015, from Hospitality Technology: http://hospitalitytechnology.edgl.com/news/Tech-Helps-Restaurants-End-the-Painful-Wait88804Thueringer, T.

(2014, September 11). Should people pay for not turning up to a restaurant? Retrieved February 5, 2015, from BBC News : http://www.bbc.com/news/magazine-29132172Toporek, A. (2014, February 7). 5 Tips for Decreasing Customer Wait Time That Really Work. Retrieved February 5, 2015, from Sales Force Blog: http://blogs.salesforce.com/company/2014/02/5-tips-for-decreasing-customer-wait-time-gp.html