case study

Case studies
Chapter 2

1. One of the most unusual restaurants we have today is Bagger’s Nurnberg in Germany.
We all have all grown tired of slow services in food chains, or being bothered by Walters in restaurants. In Baggers, say goodbye to slow service and rude Walters, as this modern restaurant takes you to a fully automated and futuristic dining experience. Right from ordering food using touch screen machines on your table to delivering food right in front of you, Baggers will amuse you with how the spiral conveyor belt can give you everything you wish from the menu. Watch in awe as everything inside Baggers is automated, making ordering, dining, and enjoying your food so modern you will forget about crappy food service and unhelpful Walters. Future-forward and innovative-Baggers will surely give you a taste of future dining.

i. Cost leadership

Hate slow service? Want to enjoy your meal without constantly being bothered by the Walter? You will love Baggers, then. This ultra-trendy and modern restaurant is completely automated, from how you order your food to how it is served to you. Order from the menu on the touch screens stationed at your table, and watch in fascination as your food is delivered to you on spiral conveyor belts above you, all the way from the kitchen upstairs. Looks more like a rollercoaster, with long metal tracks crisscrossing the dining area. The tracks run all the way from the kitchen, high up in the roof, down to the tables, twisting and turning as they go. And down the tracks – in little pots with wheels fixed to the bottom – speeds food. Foods like supersonic sausages, high-pace pancakes and wine bottles whizzing down to the customers table with the help of good gravity. One pot is spiraling down so fast, it looks like an Olympic bobsleigh. This reduces cost of employing Walters.

ii. Response

What’s more, at the Baggers restaurant in Nurnberg, you don’t need waiters to order food. Customers use touch-screen TV’s to browse the menu and choose their meal, this is a fast way to respond to customers who can’t wait for their order to be ready. You can even use the computers to send e-mails and text messages while you wait for the food to be ready. But all this may not appeal to those who like traditional waiter service. A response from a customer “the coolest way to order your food “

“Hello dear baggers team, I just wanted to thank you again yesterday with you for the wonderful evening! Not only that your concept is very funny and fun but the food was top notch and I know here in Munich that no restaurant can match the quality of her with you! We were really impressed and will not have been our last visit with you! For more restaurants are planned? E.g. here in Munich? That would beef up the dreary landscape pubs here once properly :-) Be greeted dear Catherine from Munich”

iii. Differentiation

The first rollercoaster restaurant where you order off a touch screen menu and the food is delivered to you through a steel track. With modern food preparation technology Baggers restaurant has overtaken the restaurants of the first and second dimension (i.e. service and self-service restaurants).

All good things come from above; freshly prepared, delicious meals and drinks ordered per touch screen are transported on metallic tracks directly to your table. We only use fresh, high-quality ingredients, many of which are organic produce, directly from the local region. Experience state-of-the-art information technology in a restaurant for the first time. Before placing your orders via touch screen you can read about their selected suppliers, the concept or its attractive bonus

2. Strategy

i. Maturing of their product

A major key to Bagger’s Nurnberg restaurant continued success is its ability to keep pushing the boundaries of innovation. Baggers has demonstrated how to create growth by dreaming up the modern food preparation technology waiters; so new and ingenious that they have upended one industry after another.

Internal factors affecting Baggers is the balance involving the inventory and staffing issues behind the mechanics of operating smoothly.

ii. Advancement of technology innovation in food processing equipment Self-ordering system

Customers get a RFID restaurant card at the reception counter. The RFID card saves all orders of the whole restaurant stay. Two touch screens are installed at each round table at Baggers. The menu is written on the touch screen and every meal and beverages has a picture. Customers can choose and order menu on the touch screen and the order is booked on the RFID restaurant card.

Internal factors affecting Baggers, it saves time where a waiter don’t need to go to the kitchen to order the food, and it is more systematically and organized.

External factors
i. Major increase in the price of raw materials

External factors include economic health, market stability, and natural factors, such as weather-related disasters. Raw materials are a major component of cost of goods sold. A change in materials price for Baggers restaurant is a surefire way of affecting their profit, therefore making them increase the price of their food because an increase in price of raw materials will lead to an increase in cost of producing food.

ii. Implementation of 6% GST by government

A GST is more “efficient” than the current sale tax because it only taxes value added, and not gross sales value. This is hugely important for businesses as it should reduce Baggers input costs (even if the sales tax is purportedly single stage). Nevertheless as a result of this external factor; most customers will prefer to eat at home.

iii. Changes in regulation of food services industry by government

There may be need to change the menu, customers who love to go out to eat at the Baggers restaurant, whether to sit-down or quickly grab a meal through drive-through lane, should be aware that there are changes to the information presented on the restaurant menus.

In light of the recent health care bill that requires Baggers restaurant with 20+ units to list calorie counts on the menu, operators are now tasked with balancing federal regulations with the differing demands of their customers. Customers value menu transparency, but still want the occasional indulgent dining experience. Baggers Menu insight’s foodservice trends for 2013 are all about walking that fine line between open disclosure and customer satisfaction.