Hard Rock Cafe Global Strategy Overview

1. From your knowledge of restaurants, from the video, from the Global Company Profile that opens this chapter, and from the case itself, identify how each of the 10 decisions of operations management is applied at Hard Rock Café?

Design of Goods and services

Hard Rock Café is providing the customers with an experience of music, rock and roll ambiance as well as good food. This unique experience is not limited to the meals on the menu. They combine the good food with the harmony of their memorabilia and the rock and roll spirit, which makes the experience non-replicable elsewhere.

Managing Quality

Surveys are done on a regular basis to make sure of customer satisfaction. If the result is less than 7 from the scale of 1 to 7 it is considered a failure.

Process and Capacity Design

Every product is designed and tested for cost of ingredients, labor requirement and client satisfaction. Then they are only put on production is the ingredients are available from qualified vendor.

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Location strategy:

They narrow down the search from country to city and then to precise street corner. They try to select the right market and go there at the right time.

Layout Strategy

The company designs the kitchen flows for food preparation and the bar layout for the maximum revenue. Every piece of experience strategy including memorabilia, music and visuals takes on a new significance

Human Resources and job design

The company seeks people who are love music and enjoy serving and share the experience to visitors. They train and support the employees and help them develop as contributors to their community.

Supply Chain management

They buy their ingredients based on market analysis and from qualified suppliers. The supply chain process is designed to yield a quality meal.

Inventory, MRP, JIT

The inventory includes food and merchandise as well as $40M of Rock and Roll memorabilia which most of them are on the walls of its cafes around the world. Their warehouse in Orlando cataloged every single item and every single story with that item. They know exactly what is on what wall in which café. They can locate that value.

Scheduling

The staffs are scheduled to own to 15 minutes intervals to meet daily and seasonal demand.

Maintenance

Every 5 to 7 years they collect all the memorabilia in each café and bring it to the main warehouse, they refurbish them and then replace it with new gear.

2. How would you determine the productivity of the kitchen staff and wait staff at Hard Rock? Single factor productivity for kitchen staff is unit food produced divided by labor hours and for the waiting staff is number of people served divided by labor hours.

3. How are the 10 decisions of OM different when applied to the operations manager of a service operation such as Hard Rock versus an automobile company such as Ford Motor Company? Although Hard Rock Café is considered service industry and Ford Motor is a company that manufactures goods, the application of 10 critical decisions are applied to both of them. They both have marketing, operations, and finance. They also have labor hours, supply chain of goods, facility costs and are needed to provide high quality products (service or good).