The Mongolian Grill

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TABLE OF CONTENTS

EXECUTIVE SUMMARY2
PROBLEM STATEMENT2
SITUATION ANALYSIS2
Mission2
Objective2
Background2
Strengths2
Weaknesses3
Opportunities3
Threats3
FINANCIAL ANALYSIS3
Assumptions4
ALTERNATIVES3
EVALUATION CRITERIA4
Key Success Factors4
Key Uncertainties4
ANALYSIS OF ALTERNATIVES4
Criteria #14
Criteria #25
Criteria #36
RECOMMENDATION6
ACTION PLAN7
CONTINGENCY PLAN8
APPENDICES 9
Appendix A9
Appendix B10
Appendix C10
Appendix D11
Appendix E12
Appendix F12

EXECUTIVE SUMMARY
John Butkus was considering changing the preliminary design of the Waterloo restaurant location to increase its capacity and serve customers more quickly. Mr. Butkus wants a design that will optimize the restaurants profit without compromising the customers dining experience. There are several design options available to consider: adding a second food preparation area, moving the cooking grill, both options and neither option. In order to find the best design option, I have used the detailed data collected from the London restaurant location by Mr. Butkus, as an estimation to evaluate different design options. For example, how long it took customers to go through the food preparation area, the average number of trips customer took, and the duration of the average meal time. Based on this data and current information in Waterloo restaurant location, a SWOT and financial analysis have revealed the strengths and weakness of each design. It is recommended that a combination design of adding a second food preparation area and moving the cooking grill should be used in the design change.

PROBLEM STATEMENT
John Butkus, the owner of the Mongolian Grill in Waterloo location, wants to find the design that will optimize the profit during peak business hours without compromising the customer’s dining experience. Also, he must take into consideration the inherent costs of making a change as well as the potential for creating a negative experience for the customer due to possible bottleneck issues.

SITUATION ANALYSIS
Mission:
Provide entertaining and unique dinning experience to customers.

Objective
Optimize the restaurant profitability without compromising the dining experience for the customer.

Background
John’s first Mongolian Grill restaurant in the London location is successful. However, due to the capacity constraints during busy times, the restaurant has turned customers away. •John is in the process of opening his second restaurant in Waterloo. He wants to make sure the design will optimize the profit without compromising the customer’s dining experience. •John is considering changing the design for the Waterloo location to increase its capacity and serve customers more quickly. •There are two major design changes that can be used to increase capacity: add a second food preparation area and move the cooking grill. •There are additional fixed capital investments and operation costs for the design changes.

Strengths
Data collected from the London restaurant location provides preliminary information for the Waterloo restaurant location. •Be able to duplicate the successful experience and avoid shortcoming from the London location. •The Waterloo restaurant is positioned at an accessible location at the northern edge of a growing metropolitan area. •Access to a growing market with 60% more population than the London location. •Have a concept that matches the trends of customer’ needs: quality ingredients, healthier food and a variety of choices. Weaknesses

Extreme competition in the restaurant business.
Profit opportunity loss during the peak times due to having to turning away potential customers. •Excess capacity during slow times could add additional costs, such as food and labour costs. •Inability of store excess capacity during non-peak hours for later use. •Customers demand time for the restaurant is different, for...
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