. The 10 decisions in Operations Management is applied at Hard Rock Café.
Design of Goods and Services:
Customers at Hard Rock Café don’t just want meals; ever more they want an experience. This experience concept is to provide not only a custom meal from the menu, but a dining event that includes a unique visual and sound experience not replicated anywhere else. Its strategy is led by differentiation. In short, the design of goods and services is meant to provide that kind of experience, from its food and drinks, music, memorabilia, rock concerts, retails, etc. While it adapt with every location; social norms and preferences often suggests some modification of menus for local taste. (For instance, in its British cafes less focus has been made on hamburgers and beef but more on fish and lobsters since British still have some fear on the mad cow disease)
Quality Management is an important factor in regard to the success of Hard Rock Café which comes from a variety of perspective: a)
Food quality must top the charts and several factors are taken to do just that: good food ingredients, good suppliers, operations personnel constantly review menus, food research is ongoing and quality surveys are done regularly (if food scores is not a seven from a range of one to seven in quality, it’s a failure). b)
The employees have engaging personalities; have extensive and passionate knowledge in music or the rock-n-roll industry. This allows courteous service because customers need something to relate to instead of just ordering the food. c)
Café staff is scheduled down to 15-minute intervals to meet seasonal and daily demand changes; which mean a waitress or a staff member will check on the customer within that time period. d)
Aesthetics: inside and outside are related to the layout design. 3)
Process and Capacity Design:
Hard Rock Café works to create products in an efficient manner, analyzing them for cost, quality and labor requirements. Its whole production process; from receiving ingredients, storage, grilling, baking and frying is meant to create a quality meal for the customer. Eventually, the process and capacity design at Hard Rock has developed according to the development of its activity. Initially, it started as a London café serving classic American food, and then it became a “theme” chain with memorabilia in tourist destinations. After that, it added stores with live music and rock concerts. When it became an established name already, it began to open hotels and casinos. Its menu was also been upgraded from classic American – burgers and chicken wings to include high-end meals like stuffed veal chops and lobster tails, where its kitchen process changed. Its last improvement was moving into cities that are not typical tourist destinations. 4)
Location is a major long-time decision that can make or break a business strategy. When Oliver Mundey, its Senior Director for Worldwide Café Development, is looking where to place the next Hard Rock Café, he takes into consideration many key factors from a global perspective; such as: political risk, currency risk, social norms, brand fit, social cost and business practices. A breakeven analysis helps choose the most convenient location among several candidate locations. The process of determining the fixed and variable cost of each location, plot the cost of each location, and select the location with lowest total cost for expected production volume. This is how the company systematically narrows down the search from country to city, to the precise street corner. Its location strategy of searching the world-widely for the best tourist sites is what its business depended on since 70% of its customers are tourists. While this is only good as far as the best tourist regions are traditionally good market. But, this variable (tourism) makes it susceptible to economic fluctuations when tourism business takes a hit....
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