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Case Study: Hard Rock Café Inc. Har dRockCaf eI nc.i saf oodser vi ce,hospi t al i t y ,andgami ngbusi nessor i gi nal l yf ocusedonoper at i ng cas ualdi ni ngr es t aur ant s .Foundedi nLondoni n1971,t hecompanydev el opedi t sbr andt hr ought he t hemedr es t aur antex per i ence.Cust omer sar et ypi c al l ygr eet edwi t hanambi anceofr ockandr ol l .The companyexper i encedsi gni fi cantgr owt handexpansi oni nt he1990s .Today ,Har dRockCaf ei sdi v er si fied, wi t hoper at i onsi nt hef oodser vi ce( t hemedr est aur ant s)i ndust r y ,gami ng( casi no)i ndust r y ,andhospi t al i t y ( hot el )i ndust r y .Thecompanyhasal s oachi ev edgl obals t at us,wi t hr est aur ant s,hot el s ,andcasi nosi nmor e t han70count r i es .I n2007,t heSemi nol eTr i beofFl or i daboughtt hecompany .Att hatpoi nt ,t heHar dRock Caf eI nc.headquar t er swer emov edt oOr l ando,Fl or i da.Thi sbusi nesscasei sanex ampl eofhowt he di ffer ent i at i ongener i cs t r at egycansuppor tbusi nessdev el opment .Al so,t hi scaseofHar dRockCaf esheds l i ghtont hei mpor t anceofeffect i v eoper at i onsmanagementt of aci l i t at ebusi nessgr owt handexpansi oni n i ndust r i eswi t hhi ghcompet i t i on. Thes uccessofHar dRockCaf ei spar t l yl i nk edt ot hefir m’ seffect i v enessi naddr essi ngt hebusi nessneeds per t ai ni ngt ot he10deci si onsofoper at i onsmanagement .Al s or el ev antar et hepr oduct i v i t ypr i nci pl esand concept sonper sonnelandot herar easoft hebusi nessor gani zat i on.Har dRockCaf edi r ect l yandi ndi r ect l y compet esagai nstot herfir ms ,suchasHoot er s ,Twi nPeaks,andPl anetHol l y wood,aswel lasf oodser vi ce c hai nsl i k eMc Donal d’ s ,Bur gerKi ng,St ar bucks,andDunki n’ Donut s .

Har dRockCaf e:10Deci si onsofOper at i onsManagement The10deci s i onar easofoper at i onsmanagementar ec r i t i c alcons i der at i onsf ormanager st o i mpr ov ebus i nes soper at i ons .Thegoal i st odev el opoper at i onst hats at i s f ybusi nes sobj ec t i v es , whi l emi ni mi z i ngpr obl emst hatc aus ei neffic i enc yofoper at i ons.AtHar dRockCaf e,t hes e10 dec i s i onsar eappl i edt oensur et hatt hebr and,c ompanyr eput at i on,andfi nanc i alt ar get sar emet . Thecompany ’ ss ucc es si sdependentonoper at i onsmanagement ,amongot herf ac t or si nt he bus i nes sandi ndus t r yenv i r onment . 1.Ser vi ceandPr oductDesi gn.Har dRoc kCaf eappl i ess er vi c eandpr oduc tdes i gndec i s i onst o mai nt ai nt heHar dRoc kambi anc eandbr andi mage.Forex ampl e,s uc hambi anc eandi mage r epr es entt hehar dr ockc ul t ur e,wi t hemphas i sonwhatt hemus i cgenr emeanst ot hec ompany ’ s t ar getc ust omer s .Manager sas s es sdi ffer entat t r i but esoft ar getmar k et sandappl ymodi ficat i onst o t hepr oduc t sands er v i cest os ui tt hes peci fi cdemandsoft hel oc al mar k et .St i l l ,t hes epr oduct sand s er v i c esc ons i s t ent l yf ol l owt hegener als peci fic at i onsoft heHar dRoc kCaf ebr andi mage. 2.Qual i t yManagement .Har dRoc kCaf eappl i esqual i t ymanagementbymai nt ai ni ngas pec i fic qual i t yass es s mentr ol ef ort heoper at i onsmanager .Themanagerus est hefi r m’ squal i t ys t andar ds t oi dent i f yi ss uesandweak nes s esi noper at i ons .Rec ommendedc hangesar et henappl i edt o ens ur ecompl i ancet hr oughoutHar dRockCaf e.Forex ampl e,t hec ompanyadj us t squal i t yr ul esas ar es pons et oc hangesi nt hemar k etc ondi t i on,wi t hc ons i der at i onf ors oc i alt r endst hataffec tt he bus i nes s . 3.Pr ocessandCapaci t yDesi gn.Har dRockCaf e’ spr oces sandc apac i t ydes i gnr ef er st o i nt er nalbus i nesspr oc es sesandt het ar getc apac i t yoff ac i l i t i es .I nt er nal bus i nes spr oces ses i nc l udef oodpr epar at i on,or derr out i ng,r es er v at i ons ,andot her s .Thet ar getc apac i t yofHar dRock Caf ef ac i l i t i esi sbas edont hecondi t i onoft hel oc almar k et s.Thec ompanyappl i espr oc es sand c apaci t ydes i gndec i s i onst omax i mi z ecapac i t yut i l i z at i on.Capac i t ypl anni ngi sadj us t edt o addr es sc hangesi ndemandbas edons eas onalevent si nt hel ocalmar k et ,s uc hasf es t i val sand hol i day s . 4.Locat i on.Har dRockCaf edec i desaboutt hel oc at i onofi t sbus i nes s esbas edonmar k et anal y si sandi ndus t r yanal y s i s .Mar k etr es ear c hi sappl i edt odet er mi nei ft hemar k etc ans uppor ta Har dRockCaf ei nt er msofr ev enueandpr ofi t abi l i t yt ar get s .I ndus t r yst at i s t i c sar eus edt o Chapter 1: operations and productivity

Case Study: Hard Rock Café Inc.

det er mi nei fex pandi ngt hefir mt hr oughaddi t i onall oc at i onsi sf eas i bl e.Thecompany ’ sex ecut i v es andc or r es pondi ngr egi onalorl ocaloper at i onsmanagementper s onnel ev al uat emar k etpot ent i al al ongwi t ht hepot ent i aloft het ar getl ocat i on. 5.LayoutDesi gn.Thec ompanydec i desr egar di ngl ay outdes i gnbyas s es si ngt heex pec t edi nfl ux ofc us t omer sandt henat ur eofbus i nes soper at i onsi nt hef ac i l i t i es .Forex ampl e,Har dRockCaf e t hemedr es t aur ant shav el ay outdes i gnst hatdi fferf r om t hel ay outdes i gnsoft hec ompany ’ s c as i nosandhot el s.I naddi t i on,t hec ompany ’ sr es t aur ant shav edi ffer entl ay outdes i gnss pec i fi ct o t heuni quer equi r ement sofeac hl ocat i on.Har dRoc kCaf e’ soper at i onsmanager sappl yl ay out des i gnf oreffic i entwor k flowi nt hel i mi t eds pac eav ai l abl ei nt hes ef ac i l i t i es . 6.JobDesi gn.Har dRockCaf e’ sj obdes i gndec i s i onsar er eac hedandappl i edt hr oughan anal y si sofneedsandex pect at i onsoft hecompanyandi t sempl oy ees .Theappr opr i at enes sofj ob des i gni sev al uat edbas edonempl oy eef eedbac kandcompanys t andar ds .Forex ampl e,j obsar e des i gnedbas edoncompanys t andar dsandt hes oc i oc ul t ur al c har ac t er i s t i c soft hel oc all abor mar k et .Har dRockCaf e’ soper at i onsmanagementi sf ocus edonopt i mi z i ngwor k er s ’per sonj obfi t , whi l emak i ngi teas yf orempl oy eest odot hei rj obst omax i mi z eeffic i enc y . 7.Suppl yChai nManagement .Har dRockCaf e’ ss uppl yc hai nmanagementdeci s i onsar ebas ed onmar k etdemand,v ar i et yofs uppl i er s ,andi nv ent or ymanagementc os t s ,amongot herf ac t or s . Forex ampl e,t hec ompanydet er mi nest ar gets uppl yl ev el sbas edoncur r enti nv ent or ycondi t i ons andpr oj ect edfl uc t uat i onsi nmar k etdemand.Thes uppl yc hai nmanagementdec i s i onsar eappl i ed t hr oughHar dRockCaf e’ soper at i onsmanager sandl oc at i onmanager s . 8.I nvent or yManagement .Thec ompanyappl i esi nv ent or ymanagementdec i s i onst hr ough i nv ent or ymanagements of t war e,i naddi t i ont ot r adi t i onappr oac hes .Har dRoc kCaf e’ soper at i ons managementus esdemandfluct uat i onsandhi s t or i c alr ecor dst opr edi ctc hangesneededi nt he i nv ent or y .Thei nv ent or yi st henadj us t edaccor di ngl y .Thes t r at egi cobj ec t i v ei st oens ur et hatt he i nv ent or yl ev el sar eadequat et omax i mi z et her ev enuesandpr ofi t soft hebus i ness . 9.Schedul i ng.Har dRockCaf emak esdec i si onsi ns c hedul i ngbyev al uat i ngc ur r entoper at i onal effec t i v enes s .Forex ampl e,per s onneli nv ol v edi noper at i onsmanagementass es st hebus i nes st o det er mi neoper at i onal bot t l enec k sl i nk edt os c hedul i ng.Thes c hedul esmus ts at i s f yc apac i t y r equi r ement s .Har dRoc kCaf e’ soper at i onsmanager sdi ss emi nat epl anneds c hedul est os t affand us et hei rf eedbac kt omak eadj ust ment s .Theadj ust edsc hedul esar et henappl i edt oens ur e fl ex i bi l i t yandr es i l i enc eoft hebus i nes s . 10.Mai nt enance.Mai nt enanc edec i s i onsatHar dRockCaf ear eappl i edbas edonacompar at i v e eval uat i onofas s et sandt hefi r m’ ss t andar ds .Forex ampl e,t hecompanyhasst andar dsonhow muc hequi pmentwearandt eari sal l owedbef or et heequi pmentneedsr epai rorr epl ac ement .Har d Roc kCaf eal s ohass t andar dsandpol i c i esonhowmai nt enanc es houl dbec onduc t ed,wi t h r ef er encet ot hequal i fi cat i onsofmai nt enanc eper s onnel ors er v i c epr ov i der s .

Pr oduct i vi t yatHar dRockCaf e Har dRockCaf edet er mi nest hepr oduct i v i t yofi t shumanr es our c es,i ncl udi ngki t c hens t affand wai ts t aff,t hr oughas etofwel l defi nedquant i t at i v eandqual i t at i v ec r i t er i at hatr eflec tper f or mance. Someoft hequant i t at i v ec r i t er i aus edi noper at i onsmanagementatHar dRockCaf ear easf ol l ows : 1.

Thenumberofor der st hatt heki t chenst afff ul fi l l swi t hi nHar dRockCaf e’ ss t andar d al l ot t edt i mev er sust henumberofi t emsor der edbyt hec ust omer s.( Ki t chenst affpr oduct i vi t y)

Chapter 1: operations and productivity

Case Study: Hard Rock Café Inc. 2.

Thenumberofor der st hatt hewai ts t affser v esordel i v er swi t hi nHar dRockCaf e’ s s t andar dal l ot t edt i mev er sust henumberofi t emsor der edbycust omer s.( Wai tst affpr oduct i vi t y) 3. Thet ot alnumberofst affmember sv er sust het ot alnumberofor der sf ul fil l edi naday . ( Ki t chenandwai tst affpr oduct i v i t y) 4. Thenumberofl at eorunf ul fil l edor der sperdayv er sust het ot alnumberofor der sf ort hat day .( Ki t chenandwai tst affpr oduct i v i t y)

Thequal i t at i v ec r i t er i af ordet er mi ni ngwor kf or cepr oduc t i v i t yatHar dRockCaf ear ebas edmai nl y ons ubj ec t i v ej udgmentofmanager s ,s t affmember s ,andc us t omer s .Forex ampl e,oper at i ons manager sus ec us t omercompl ai nt sandc omment st oqual i t at i v el ymoni t ork i t c hens t affandwai t s t affpr oduc t i vi t y .Har dRoc kCaf eus est hesequant i t at i v eandqual i t at i v epr oduc t i v i t ycr i t er i at o as s es ss pec i fi cper f or manceas pec t sofi t shumanr esour c es .Thecompanyal s oc ombi nest hes e c r i t er i at odev el opabr oaderper s pect i v eont hepr oduct i v i t yandper f or manc eoft hewor k f or c e. Thes equant i t at i v eandqual i t at i v emeas ur esgui depr oduc t i v i t ydeci si onsatHar dRockCaf e.

Chapter 1: operations and productivity...