Since its founding in 1971, Hard Rock has gone thru many strategy changes. The company started out as just a small London cafe, and now has 110 cafes thru ought the world, hotels, casinos, live music venues, a rock museum, and an annual Rock concert. Hard Rock also makes a significant amount of their revenue, 48%, from retail merchandise. Hard Rock Cafe is the number one themed restaurant in the world, and is one of the most highly recognized brands. While the restaurant remains American-style cuisine, they have gone from solely burgers and chicken to also include high-end items like lobster tails and stuffed veal chops.
The ten critical decisions of Operation Management are listed below along with how Hard Rock applies each principle. Design of Goods and Services. This critical decision deals with service and product design. Hard Rock’s product is the food they produce. They put a lot of effort into creating and testing their products for cost efficiency and customer satisfaction before they are sold in their restaurants. Managing Quality. When creating new products, Hard Rock only puts items on the menu if they know they can get the ingredients from qualified suppliers.
Every step of the production process is built to create a quality product. Also, managers hire motivated people and train them well to create a positive restaurant experience for customers. Process Strategy. Hard Rock works to create products in an efficient manner, analyzing them for cost, quality, and labor requirements. The whole production process, from receiving ingredients, storage, grilling, baking, and frying is designed to create a quality meal for the customer (Heizer and Render, page 3). Location Strategies.
Hard Rock Cafe has always catered largely to tourists in recent years, and normally builds restaurants in “destination” cities. Their largest restaurant and one of the biggest restaurants in the world is located in Orlando, Florida. Layout Strategies. Hard Rock Cafe’s are filled with musical memorabilia and have an open, casual layout. The look and feel is similar in every Hard Rock Cafe thru ought the world. The kitchens are also designed to allow efficient preparation and delivery of meals. Human Resources.
Hard Rock hires only the best employees that are motivated, enthusiastic and have a love for music. Supply-Chain Management. Hard Rock works with qualified suppliers to ensure fresh, quality meals to their customers. Inventory Management. Managers need to monitor inventory based on customer demand for popular products, both food and retail related. Scheduling. The company keeps the restaurants fully staffed to ensure customers aren’t kept waiting. At the Orlando restaurant, staff is scheduled in 15 minute intervals to keep up with the high demand of vacationers.
Maintenance. Maintenance for Hard Rock is based mostly on food preparation and storage. They have to make sure food is stored and prepared correctly. The Global Profile of Hard Rock Cafe in the beginning of Chapter 1 states that Hard Rock produces goods the way the customer wants them and in the time the customer wants them. I would measure productivity of the kitchen staff and wait staff by ensuring that food was cooked the way the customer requested, that it was still hot when delivered to the customer, and the customer was completely satisfied with their meal.
The wait staff should be enthusiastic and friendly with all customers ensuring they are happy with the service and food. For cooks, they can be measured by the amount and quality they are producing in a given hour. For the wait staff, their product is intangible, and they can only deliver food at the same speed the kitchen staff cooks it, so there is no easy way to measure their output. In this case they would be measured on their politeness, friendly tone and smile, and building rapport with the customers. The 10 decisions of OM are very different for Hard Rock Cafe and Ford Motor Company.
Hard Rock is in the service industry, and is highly dependent on customer input and interaction. A simple cheeseburger on Hard Rock’s menu can be cooked in dozens of different ways depending on a customer’s preference, making it a completely different cheeseburger. A Ford Explorer may have a few extra features you can add, but the overall car is going to be the same and it is not created for you when you ask. Products at both companies are tested for quality and customer satisfaction, but at Ford there is a much greater emphasis on quality control, engineering, and safety.
Measuring the safety rating of a car or SUV is tangible, while measuring the quality of an ingredient for a meal is not. Hard Rock Cafe has become a completely global company and has had to make changes to some of their OM strategy decisions. While the commitment to quality and excellent service stay the same, some products will vary slightly in different countries. As Oliver Manday, Sr. Director of Worldwide Cafe Development, stated in the video, Hard Rock has to consider political risks, social costs, business concerns, and social norms for each of the countries they expand to.
An example the case gives is that in London, where people are still fearful of mad cow disease, less emphasis is placed on beef and hamburgers. The overall theme and style of each Hard Rock Cafe is the same and whether you’re in the U. S. , Europe, Asia or anywhere else, you will get a similar experience. One problem that Hard Rock faces is that they are geared primarily towards tourists in different areas. Due to problems in the economy, not as many people are travelling, and that is affecting sales at Hard Rock.
They have attempted to build more cafes in non tourist areas to build a customer base not dependent on tourists in London, but they need to do this in other cities also. I believe Hard Rock would attract more non-tourist customers if they had some smaller restaurants within cities. For instance, the Hard Rock in downtown Chicago is huge and attracts a lot of visitors. But for many people who live in the Chicago area, they would prefer to go to other types of restaurants when they go downtown.
When my friends and I go downtown to eat, we prefer a fancier type of restaurant, but if Hard Rock Cafe were in more suburbs, I would probably frequent there more often. Hard Rock’s quality of food and service would give them a competitive advantage over existing American style restaurants if they were to move to non-tourist locations. References Heizer, Jay and Render, Barry (2006). Operations Management (8th Edition). New Jersey: Prentice Hall. Hard Rock Information. Retrieved 8/27/08 from www. hardrock. com/corporate.