Service Management Case Study on Mongolian Grill,Jonah Guo, Queen's MBA
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This is a class presentation prepared for a case study on a Mongolian Grill restaurant in North America. All the content is only presented for educational use only. Photos are from Google Image Search. The team suggested to optimize the restaurant’s design to increase profitability,reduce waiting time while maintaining the unique customer experience
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Service Management Case Study on Mongolian Grill,Jonah Guo, Queen's MBA
- 2. Executive Summary Existing restaurant in Location A Open a new restaurant in Location B Optimize the restaurant’s design to I. increase profitability II. reduce waiting time III. maintain the unique customer experience
- 3. Background: Heyday of Mongolian Empire It existed during the 13th and 14th centuries, and was the largest contiguous land empire in human history
- 5. Grill on the shield On the way of their journey, Mongolian warriors sometimes grilled food on the shield to save time on their journey all the way to the Europe. Ancient Mongolian believed that food should not be cooked directly on fire.
- 6. Beijing Hot Pot Beijing Hot Pot is built on the same idea.
- 7. Modern Mongolian Grill Invented by Mongolians in Taiwan in ’70s Both hot pot and Mongolian Grill resemble the structure of Mongolian tent.
- 8. Modern Mongolian Grill Experience Youtube: http://www.youtube.com/watch? v=4PXSKZnakng
- 9. Mongolian Grill Service Blueprint 3 times/person evidence Physical Restaurant Dé & cor Menu & food Cooking Presentati Return to Billing Parking Ambience selection grill on & taste Table Customer Arrive at Check Select meat, Give to Receive Receive Ask bill, Mongolian availability vegetables & cooking grilled drinks, pay & leave Grill & seating Sauces/spices station food bread & rice Line of Interaction Contact employees Greet and Prepare Serve drinks, Process bill Visible drink orders food bread/rice (Invisible Prepare Stock up Maintain drinks food & Cooking sauce bar grill Line of internal interaction processes Support Prepare Prepare Payment food, sauces rice & system & spices bread
- 10. Key Issues in the Case Capacity constraint High throughput time Retaining unique customer experience
- 11. Alternatives: 1. Current Design
- 12. 2. Implement proposed design changes
- 13. 3. Optimize the proposed design
- 14. Decision Criteria & Analysis
- 15. Time Analysis
- 16. Cost Analysis Additional cost Fixed cost $3200 for setting up additional food bar $2100 for setting up additional oil and spice bar $600 for additional counter space for cooking grill Total fixed cost = $5900 Variable cost (per week) Additional kitchen employee for an 8 hour shift on Thursday, Friday and Saturday Additional cook in the busy period ( on Thursday, Friday and Saturday) = 8 X 8 X3 + 5 X 12 X 3 = 192 + 180 = $ 372 Contribution Margin = Revenue – Variable cost = 1425 – 372 = $ 1053 Break even = Fixed cost / contribution Margin = 5900 / 1053 = 5.6 weeks = 6 weeks approximately
- 17. Recommendations
- 18. Risk & Mitigation Potential bottleneck at grill? Hire more chefs Build another grill Reduced kitchen impact Inventory ? Just in-time inventory
- 19. Looking Forward Attract customers on off-peak hours
- 21. Other Options
- 22. We got this circle-by-circle idea from the Heaven Temple in Beijing, which was once the capital of Mongolian Empire
- 24. Another easy-to-implement idea, yet may cause confusion for consumers Crossing Point
- 25. Thank You for listening! Jonah Guo Queen’s MBA 2012 Canada www.Jonahguo.com jonahguo@gmail.com