Application of the 10 Critical Decisions of OM at HRC
A restaurant is successful in large part because it is able to provide a variety of products many people will want to purchase. Hard Rock Café is one of those restaurants around the world which provides foods and services that enables the customers to come back over and over again. Also, HRC takes into consideration the season, holidays and time of paydays of their valued customers which enables them to fully utilize their resources. Their objective is to offer not only meals, nowadays they want to bring a great experience through the history of music. One key factor of the company’s success is the fact that they have fully utilized all of the OM key components to turn the company into a successful and loved attraction around the world. Thus, here is the application of OM decisions at HRC:
Quality Management: They conduct surveys on a regular basis to evaluate the quality of food, music, atmosphere and service at the café. Their surveys are based on a 1 to 7 scale, and anything less than 7 is considered a failure. When that certain food or service has been considered a failure, their menu will change to fulfill customer recommendations accordingly. Hence, at Orlando’s Universal Studios, HRC serves over 3,500 custom meals each day. HRC has provided the best quality of their product which enables the customers to love the company making their brand to be one of the highest in the world.
Service and Product Design: in the 1970’s where Rock ‘n’ Roll was at its peak in the music world, HRC was established. It started with a simple design until it changes over time to meet the changing trend and tastes of the new generation. The products and services provided were those of a traditional London pub since HRC originated in London, England. They provide products and services which suits the preferences of their customers which mean that they value their customers that much.
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Process and Capacity Design: HRC creates products in an efficient manner by analyzing them for cost effectiveness and by labor requirements. They analyze the whole production process to meet the recommendations of their valued customers. The food production process, from receiving the ingredients, to cold storage, to grilling or baking or frying, and a dozen other ingredients, is designed and maintained to yield a quality meal. Also, the process of receiving the customers, to assigning their seats, to taking and processing their orders, to delivery of their meals, and the payment is designed well, especially for peak times.
Location: In 1988, HRC has expanded to more than 40 locations throughout the US. As of now, they have 166 venues in more than 52 countries around the world including 133 cafes and 14 hotels and casinos. One criterion in which they base their location decision is may be the economic standing of one country. They expand in the prime spots of tourism where they can gain more profit and is placed in an area which is convenient to its valued customers.
Layout Design: one of the reasons why people keep coming back at HRC aside from the quality of their products and services is the atmosphere of the café. HRC displays 1000 guitars as memorabilia and emphasizes on live music which drives customers especially those who love rock music. They provide live music venues, a rock museum, rock ‘n’ roll memorabilia and an annual Rock fest Concert. Additionally, the restaurant and bar layout are customized to guide the circulation of customers to memorabilia and merchandise. Half of the company’s profit comes from its retail shops so optimal layout is essential. Lighting, sound, screens, and contemporary music are carefully selected to be the most advantageous for the company.
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Human Resource and job design: HRC hires staff with passion of music, desire to serve and provide a positive experience to the customers. They train their staff well to be able to provide a service quality on passenger satisfaction and loyalty">quality service to their customers. In Orlando, café staff is scheduled down to 15 minute intervals to meet seasonal and daily demand changes in the tourist environment. The café has provided a reasonable work environment and turned into a successful one form a Modest London pub to a global power because nits management are topnotch and they have knowledge, determination and process to make everything work just right.
Supply chain management: HRC gets the right ingredients at the right place and the right time from its qualified suppliers. Hard Rock has explored new global resources to achieve maximum profitable via supply chain. They selected USCO logistics, a subsidiary of Kuehne & Nagel, to take over distribution and replenishment of collectible and fashion merchandise for its cafes, hotels, and casinos in North America.
Inventory management: In HRCs, the most important inventories are all kinds of rock and roll items, which can be found in each Hard Rock Café. Hard Rock Café has invested 40 million dollars in one of the largest collections of Rock and Roll memorabilia inventory and use an extensive and detailed cataloging system. Their products are cleaned and stored very carefully. Further, the food ingredients are stored at the right temperatures and used in time.
Scheduling: Sales, community events, seasonality, and trends are tracked so a sales forecast can be made to schedule efficiently and maximize revenue. Hard Rock Café is using a lot of forecasting techniques such as moving averages, weighted Moving Averages, Exponential Smoothing and Regression Analysis that helps manager to see the impact on demand of other menu items if the price of one item is changed.
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Maintenance: Hard Rock Cafe got the goal of maintenance when they succeed to maintain the capability of the system over 52 countries and keeping a system’s equipment in working order in 166 cafes around the world.
Productivity of the kitchen staff and wait staff at Hard Rock Café
A key to a successful restaurant is to understand that employees want to be aprt of the team. At HRC, the hiring of staff is precise and accurate to maintain the flow of customers
and product in and out of their stores and restaurants. The wait staff is not just fully
knowledgeable of the music, but also of the wants and needs of all of the customers. They show that they are motivated to give their all for the company and be a part of the company’s further success.
