2. Current Issue
Even though Mongolian Grill has been a successful restaurant in London following issues occur
while implementing in a considerable larger populated place of Canada:
• Critical Time Period (Waiting for food during 6-10 pm) Critical Time period
6-10 pm
Average meal duration
90 minutes
Table
Turnover
rate
2.66
Avg. Trip
3
Demand Pattern
Capacity Peak Time Days
Full 6-10 pm Th, F, S
Half Full NA Others
• During the weekends there is no capacity to accommodate the
costumers.
• Otherwise on weekdays there is a possibility for half full.
3. Current Floor Plan
As every seat is
taken for the
duration of 90
mins.
Entrance and
counter is getting
populated. More
space is needed.
Blue Represents Busy
Arrow shows flow of customers in the food preparation area.
Diagram approximately to scale.
4. Current Demand Pattern of Waterloo
• The Waterloo restaurant has 190 seats capacity.
• At Waterloo , Thursday, Friday and Saturday it will be full capacity.
• It would likely turn away 20 to 30 customers on Thursday night , and 30 to 40 customers on Friday
and Saturday nights.
5. Comparative Demand Analysis
Current Demand Pattern of London
• Operations:
7 days/wk : 11am – 11pm
• Potential Business Estimation
Proposed Demand Pattern of Waterloo
THU LOW: 20 HIGH: 30
FRI LOW: 30 HIGH: 40
SAT LOW: 30 HIGH: 40
Demand plan Strategy
By shifting and smoothing the schedule and
optimization of current floor plan by changing the lunch
duration.
Strategy
Can consider non‐critical dinner periods but do not
consider lunch.
6. Revenue and Yield Forecast
• Current Revenue and Yield Analysis
Revenue generated for average meal price and contribution margin without drinks is:
$23 @50% profit margin = @$ 11.5/person
ROI increased the yield if number of seats increases.
• Current Revenue Loss
• The table shows that Mongolian Grill restaurant would lose revenue either when monetary effect of high or low
assessment 20-30 customers on Thursday and 30-40 on Friday and Saturday .
• Loss of $47,840 happens during low estimate and a loss of $65,780 occurs during high time expectation.
Parameters Money Impact of Capturing Low
Estimate
Money Impact of Capturing High
Estimate
Thursday 20 30
Friday 30 40
Saturday 30 40
Total per week 80 110
Total per year 80*52=4,160 110*52=5,720
Total Annual Impact 4,160*$11.50=$47,840 5,720*$11.50=$65,780
3.28 turns*190 seats= 624
2.66 *190= 505 seats
119 extra *23= 2,737 *3=
$8,211 one week
8,211* 52= $426, 972 year of
increased revenue /2 =
$213,486 Profit
ROI: 213,486/ 11,800= 18.09*
100= 1809%
7. Current Vs. Proposed
A floor plan is generated for to allow the customers to sit at the counter and order grill. That is how
the ratio of turning down the costumer will decrease.
Blue Represents Busy
Current Proposed
Green represents accommodated space for more new
costumers.
v
Arrow shows flow of customers in the food preparation area.
Diagram approximately to scale.
Arrow shows flow of customers in the food preparation
area. Diagram approximately to scale.
8. Cost‐Benefit Analysis of the Options with current demand plan
Benefits
• Time saved
for the staff
to serve
during critical
time period.
Issue
• Capacity is
compromised
.
• Revenue is
decreased.
Benefits
• Food Bar +
Sauce, Oil and
Spice Bar can
be placed
anywhere.
• Capacity will
Increase.
• Revenue will
increase.
• Time will be
saved by
increasing the
chefs by
moving the grill
to the center.
Issues:
• cost will
increase.
• line balancing &
bottlenecks occurs
Cost‐Benefit Analysis of the options with modified plan
Cost Calculation Steps Total
Food bar One time Cost
$10,600
$6,400
Sauce, oil, spice
bar
One time cost
$10,600
$4,200
1 additional
kitchen staff 8-hr
shift on TH+F+S
$16/hr×8hr/nt×
3nt/wk×52wk
$19,968
Total Cost: $30,568
Time saved / trip &
total trips
Calculation Steps Total
Food bar (wait
time)
90 sec × 3 trips 270 sec
Sauce, oil, spice bar
(wait time)
80 sec × 3 trips 240 sec
Food bar (wait
time)
60 sec × 3 trips 180 sec
Sauce, oil, spice bar
(Selecting item)
30 sec × 3 trips 90 sec
Total time saved 780 sec/ 13 mins
Cost Calculation
Steps
Total
Food bar One time Cost
$10,600
$6,400
Sauce, oil,
spice bar
One time cost
$10,600
$4,200
1 additional
kitchen staff
8-hr shift on
TH+F+S
$16/hr×8hr/n
t×3nt/wk×52
wk
$19,968
Total Cost: $30,568
Cost Calculation
Steps
Total
Additional
counter space
One time cost $1,200
2 additional
cooks
80 sec × 3
trips
$37,440
Food bar
(wait time)
($24/hr×
5hr/nt×3nt/w
k×52wk) ×2
$38,640
9. Chart Cost Analysis of Previous and Current
floor plan of Mongolia Grill
0
5000
10000
15000
20000
25000
30000
35000
Cost of previous plan Cost of Current floor plan
Chart Title
Series 1 Series 2
10. Conclusion
• Importance of floor plan is highlighted in this case study to analyze
the revenue and yield forecast.
• Previous floor plan has a lot of space occupied with none. There is an
empty hallway right to the sitting plan.
• So, it is suggested by choosing three options by modifying the current
floor plan. Option that is most suitable is to move Sause and grill on
the empty hallway and people can order from there and more table
can be added to the sitting area and the turn over increases.
• By moving the grill anywhere or in hallways it will increase the cost
with an additional $38,640 but the tie of serving will also decrease
and ROI increased up to 1809%. 1809%
