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

1. Feb. 29, 2012
Amol

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

4. Mongolian Tent

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