A Comprehensive Analysis of
Azia Restaurant
Prepared by: Taem Nowlan
December 7, 2008
Joseph Agriesti

Patrick Cattoor
Tom Haag
Christine Hoene
Kayla Nowlan
Evan Schawartz
2

Table of Contents-
Executive Summary.............................................................................................................6
Introduction..........................................................................................................................6
A.) An overview of Azia's: Strategies and Planning Activities..........................................8
Mission Statement............................................................................................................8
Degree of Diversification.................................................................................................8
Level of Vertical Integration............................................................................................9
Industry Key Success Factors........................................................................................10
Distinctive Competencies..............................................................................................10
Overall Corporate & Business-Level Objectives..........................................................11
Basic Competitive Posture.............................................................................................11
Implementation Tactics..................................................................................................11
Operational Planning Process........................................................................................12
Evaluation Methods.......................................................................................................12
B.) Porter's 5-Forces model: applied to Azia Restaurant..................................................14
Porters 5-Forces Model..................................................................................................14
Potential Entrants...........................................................................................................15
Bargaining Power of Buyers..........................................................................................15
Threat of Substitute Products or Services......................................................................15
Bargaining Power of Suppliers......................................................................................16
Industry Competitors......................................................................................................16
C.) A Description of Azia's Marketing Strategy................................................................16
Key Products and Services.............................................................................................17
Products/Service life cycle Velocity..............................................................................17
Promotion Mix...............................................................................................................18
D.) S.W.O.T. Analysis ......................................................................................................19
T.O.W.S. Analysis..............................................................................................................20
E.) Contrast Azia's Strategies with its Closest Competitors' Strategies............................21
F.) Define Any Problems That You Foresee Regarding the Strategic Direction/Planning
Efforts of Azia's Restaurant...............................................................................................21
Part II – Azia’s Structural and Behavioral Characteristics....................................................22
A) Observed and Learned Behaviors On-Site...................................................................22
Structure.........................................................................................................................22
Decision Making Process...............................................................................................23
Leadership Style/Tendencies.........................................................................................23
Culture/Ethics.................................................................................................................23
Level of Diversity..........................................................................................................24
Focus on Learning, Creativity, and Innovation.............................................................25
Internal and External Recruitment Programs................................................................26
Criteria for Hiring..........................................................................................................26
Training and Development Programs............................................................................27
Criteria for Promotion into Management Positions......................................................27
Motivation Techniques – Compensation ......................................................................27
Approach to Job Design.................................................................................................28
Use of Teams..................................................................................................................28
3

Method for Assessing Employee Performance.............................................................28
B) How a Choice in HR Affects the Rest of the Organization..........................................29
C) The Strategic Perspective: How Azia’s Choices Help/Hinder its Competitive
Advantage...........................................................................................................................29
D) Areas for Improvement Regarding Structural and Organizational Behaviors/Programs
............................................................................................................................................30
Part III- Examine Azia's Operations......................................................................................31
A.) An overview of Azia's Operations...............................................................................31
Location..........................................................................................................................31
Layout.............................................................................................................................32
Supply & Distribution Chains........................................................................................34
B.) Azia's Process Choices.................................................................................................35
Capacity & Productivity Levels.....................................................................................35
Level of Standardization vs. Customization..................................................................35
Quality Program.............................................................................................................36
C.) Degree of Fit between Current Situations/Strategies and Process Choices................39
D.) Azia's QFD Matrix.......................................................................................................40
Part IV- Systems’ Analysis....................................................................................................42
A.) Flow of Information.....................................................................................................42
Sales/Marketing:............................................................................................................42
Forecasting:....................................................................................................................44
Purchasing Inventory:....................................................................................................46
B.) Integration of systems..................................................................................................48
C.) Big Picture ...................................................................................................................49
D.) Strategic Perspective/Competitive Advantage............................................................50
E.) Areas for Improvement................................................................................................51
A.) Income statement.........................................................................................................53
B.) The Balance Sheet........................................................................................................54
C.) Basic Ratio Assessment...............................................................................................55
D.) Azia’s Financials versus its “competition”.................................................................57
E.) Areas for improvement regarding Azia’s financials....................................................58
Part VI- Recommendations for Azia......................................................................................59
A.) Problem Areas..............................................................................................................59
Part VII- Appendix.................................................................................................................61
Facilities Tour.....................................................................................................................61
Azia 2008 Projected Income Statement.............................................................................64
Azia Balance Sheet 2005...................................................................................................65
Azia Balance Sheet 2006...................................................................................................66
Azia Balance Sheet 2007...................................................................................................67
Correspondence with Client...............................................................................................68
Group Responsibilities
............................................................................................................................................75
Gantt Chart Overview and Critique of Overall Group Project Effort ..............................76
Individual Statements.........................................................................................................77
Thank you letters to Thom Pham.......................................................................................83
Azia’s Menu (everything included)...................................................................................89
4

Gantt Chart.......................................................................................................................103
5

Executive Summary
Azia, a restaurant that is frequently described as chic, has grown and expanded in
its short existence. This has both helped and hindered the company. It has helped in the
sense that Azia has posted positive profits and serviced many customers leaving them
happy and satisfied, but it has not allowed Azia the time to develop certain parts of the
restaurant devoting the necessary time to every detail. While exploring the intricacies of
this company and its management we came up with some recommendations that may
improve their restaurant and future success.
Introduction
Located in between uptown and midtown on the corners of Nicollet and 26th, Azia
has carved out a niche in the market for providing “A unique dining experience” as their
mission statement says. They do not focus on any specific demographic but relish the fact
that they are able to provide a great dining evening or afternoon to just about any person.
They have the unique ability to be able to serve many different foods and eating styles.
The restaurant has three main areas that they break the restaurant down into: the
main dining area, which includes the main bar, the Anemoni sushi bar, and the Caterpillar
lounge. Each area is unique in its own way and offers different menus, even though you
are able to order from any menu from any area.
Azia has attempted to stay on top of the restaurant game by innovating with their
menus and keeping their food fresh with the best possible suppliers. The owner Thom
Pham believes hard work combined with smart business decisions will always be an
important factor in the future of this company, and that Azia’s success is because of this.
He also believes that by his example his employees will recognize this and follow his lead.
In its short history Azia has already proven that it can compete with high end
restaurants while maintaining affordability. This is one reason why Azia is considered by
many to be on top.
6

7

Part I- Examine the Organization from a Strategic Perspective
A.) An overview of Azia's: Strategies and Planning Activities
Mission Statement
Azia Restaurant's Owner and Executive Chef, Thom Pham, explains Azia's Mission
Statement as \"To create an environment were People of all ages can enjoy themselves in
through the diverse menu or in one of the three different environments of Azia\". This
mission was created by Mr. Pham himself, however he does give recognition to his staff for
there effort in pursing his mission and making Azia what it is today.
*Owner Thom Pham
Degree of Diversification
In the beginning Azia started simply as a one section restaurant that offered many
classic Asian dishes and did not yet have the funds to expand or renovate. The restaurant's
location and cuisine was an instant hit. With the increasing number of customers and a
growing fan base Azia believed this would be a great reason to grow the restaurant and
diversify. Conveniently the location next door to Azia became available, as well as the
location behind them. Azia decided to combine all 3 locations and diversify the restaurant
into three different, yet connect areas. Keeping the original dining area, the back area
became a bar and lounge area known as \"The Caterpillar Lounge\", and the area to the side
of them became known as \"Anomone Oyster & Sushi Bar\" offering a whole different
8

atmosphere and made the restaurant extremely diversified and able to cater to a much
larger crowd.
This plan of diversification worked extremely well and Azia is still looking for
ways to expand. Recently Azia during the summer months has used its outdoor boulevard
to it's advantage by creating seasonal outdoor seating areas around the building. This not
only created more space and allowed more business at one time, but also created an
atmosphere for those who want to eat while enjoying the warmer summer weather. They
also succeeded at this by continuing to create a unique enjoyable atmosphere and décor,
even though the seating area was on the side walk. Mr. Pham, Owner and Executive Chef,
is considering the possibility of taking another opportunity to diversify. The upper level of
the building they are located in recently became available. Azia is still in the planning
process, but is trying to figure out how they could use this space to expand and diversify
the restaurant even more. Mr. Pham states, \"We are always trying to find the most unique
ways to expand and diversify\".
Level of Vertical Integration
Due to certain key factors Azia has a low degree of vertical integration. The 2
major key factors Azia is lacking are 1. Not owning the property at which they operate
business and 2. Receiving all food and beverages from different suppliers. Mr. Pham says
that the greatest thing he regrets is not owning the property his business is located on. He
says that he could do so much more if the building belonged to him, and would fix some of
the buildings structural elements as well as redo the basement to have a more productive
and neat business office area, but until he actually owns the location there is no reason for
Azia to invest money into fixing up the basement of the property. However the lower level
of vertical integration works well for Azia for now because they are able to rely on many
different vendors' products to offer what they do to customers, and if Mr. Pham had chosen
a different location for Azia, one that he could have purchased, Azia may not be as popular
and may not have had the ability to grow as much as it has, which could have lead to its
downfall.
9

Industry Key Success Factors
The biggest success factor according to Mr. Pham is Azia's ability to attract such
a diverse demographic of people. He believes that every person can find something on the
menu that caters exactly to their liking. He gave the example of a person who comes in
and orders completely off the happy hour menu and another person who comes in
and wants a thousand dollar bottle of wine and best stake or seafood dishes, both leave
satisfied with there meals and the experience. Another example would be a group of
friends who meet to catch up and chat over a quite dinner and a group of friends who
want the bar atmosphere with live dj and fun bar and lounge area, both groups of friends
can have a great time although each wanted totally different things out of the night out. He
believes that many other restaurants fail to cater to a large diverse demographic and instead
cater to smaller target markets of either higher class buyers or lower class buyers, where as
Azia has found a way to succeed in the restaurant industry and cater to all classes of
people.
Distinctive Competencies
Azia's has five main strengths that distinguish them from their competitors. The
first is the layout, Azia offers three different areas to dine in as well as an outdoor eating
area in the summer. The second is their locations, they are located conveniently on the
corner of Nicollet Ave. and 26th street right in-between Uptown and Downtown. The third
is their diverse cuisine, they offer everything from ceaser salad to Omokase (a large
Japanese dish). The fourth is their pricing strategy, they offer an all night happy hour as
well as a $2000 shot of liquor both appealing to different types of people. The fifth is the
décor, Azia has a completely unique décor that is unlike another potential competition.
Because Azia is so different in these ways Mr. Pham truly believes that they do not have
any close competitors.
10

Overall Corporate & Business-Level Objectives
The current short term goals of Azia are to begin to research the possibly of
expanding into the upper level of the building. Azia needs to figure out how the upstairs is
going to be different without taking away business from the lounge or sushi bar yet still
attract new people to the upstairs location. Another issue that lucky has not effected Azia
is the current economic recession. Mr. Pham believes that because their restaurant has so
much to offer so many they have been lucky enough to not yet feel any effects of the
recession. A long term goal is to expand and create other sister restaurants to Azia whether
throughout the state or country, Mr. Pham is always ready for something new and want to
grow his restaurants and have multiple locations.
Basic Competitive Posture
Azia prides itself on its superior quality of food, atmosphere, décor, and customer
service. Because so many consumers are loyal to Azia they have an achievement of such a
high level of customer satisfaction shown through its fan base of repeat customers.
Although they are not the lowest or highest cost provider, they provide so many unique
items and an experience that there is really no substitute for.
Implementation Tactics
Azia is open until 2am every night of the week. This means that they must have an
eager and efficient staff. Each staff member must have had previous restaurant experience
and therefore know that a restaurant as busy as Azia is can be hard to come by these days.
Therefore, motivating staff is not a problem for Azia. The servers and bartenders have to
potential to make good money in tips and money as Mr. Pham says seems to be the best
motivator to keep them wanting to work later and longer shifts.
11

Operational Planning Process
Azia uses a mixture of both formal and flexible operational methods. For instance,
a manager may need to be more formal in making sure the duties for the day are completed
in order to accurately run the restaurant. On the other hand, a server or bar tender may
need to be more flexible depend on what section they are working in and in effort to keep
guests happy. If a guest requests a change to a particular item on the menu it is the servers
job to put the order into the kitchen (formal) but needs to relay the special change in the
order to the cooks themselves (flexible) in order to keep the customer service at a high
level. By having a mixture of both formal and flexible Azia is able to maintain a well
structured business while meeting individual customers needs.
Evaluation Methods
In terms of forecasting, evaluating the future for Azia is always changing. There
forecasting is based on past data and sales patterns that help indicate what level of
performance the restaurants future should be performing at. Evaluating performance of the
restaurant is done on a regular basis. The restaurant orders its food and drinks from
vendors at specific times. However it is the responsibility of certain employees at Azia to
monitor levels of food and re-order items that may be low. For example, if it has been an
extremely busy weekend for sushi and Azia is down to its last few pounds of salmon, it
would be the head sushi chef's responsibility to order the correct amount the restaurant
needs for about two or three days of operation based on how many items on the menu
contain that salmon. He would need to order it direct and have it flown into the U.S. by
next day air, in order to keep the fish as fresh as possible and to keep customer service
high. It is easy for Azia to evaluate if an employee is performing well because of examples
like the one above. If the restaurant was completely out of salmon and had to disappoint
each customer that wanted salmon it would be the sushi chef's fault for not ordering more
because now they will be out for two days due to the wait of over night for a shipment to
get in. Another way Mr. Pham evaluates his employee's performance is found in his
dedication to the restaurant. Mr. Pham is workaholic and can be found working or dinning
12

at his restaurant every night until 2am. While he is there he is constantly observing his
employees and will always point out to them in private when they have made mistakes and
gives them helpful critiques because he wants them to be topnotch and professional. Mr.
Pham also has an all staff meeting every other Sunday morning which is mandatory. At
this meeting he discusses new items on the menu and is often giving employees flash cards
and pamphlets to help them memorize the elements of Azia's large menu. Memorization is
not required, but he wants them to have amicable knowledge of the menu and what
ingrediance make up each dish.
13

B.) Porter's 5-Forces model: applied to Azia Restaurant
Porters 5-Forces Model
Porters 5-Force *Barriers to entry - Azia is such a large
unique restaurant that it is difficult to
Model compete with its variety and quality of
food as well as the unique décor and
experience .
* They offer a outstanding quality
*Developing neighborhood . Much
of service
Potential entrants room for renovation in neighboring
*They have the ability to diversify buildings .
within the same building Threat of new entrants
*They motivate their employees
through a profit sharing program
Industry Competitors
*High volume, frequent
Bargaining power
purchasing and close
of suppliers
relations with suppliers
Buyers
Suppliers
allows them to
negotiate prices .
*Not many upscale restaurants offering high
Bargaining power
Rivalry among
* Relationship with of buyers
price items and low affordable priced items on
existing firms
direct supplier for its the same menu .
seafood allows Azia to
have delivery’s flown in
*Azia’s happy hour menu .
within 2 days of Threat of substitute
ordering . products or services
*Customer comes first at Azia. The owner is
*Other restaurants on site ready to solve problems to ensure
customer leaves satisfied with their
offering a similar menu
Subsitutes experience at Azia .
orders seafood from *Buyer Propensity to
secondary suppliers .
Substitute- Other dining
choices in neighborhood ,
however Azia is open till
2 am every night.
*Diversity of food types.
Azia offers
predominately seafood.
14

Potential Entrants
The barriers that arise in entering into the restaurant industry are extremely high.
Very few restaurants have the ability to be successful unless they have been around a long
period of time and have a huge fan base, or if they are in a high traffic location and have a
good enough product to be an instant success. Mr. Pham believes with the market the way
it is we will sadly see more restaurant going under verses starting up. Over the past seven
years the neighborhood around Azia has grown and there now are many restaurants on this
one block chain. Mr. Pham says that he loves the fact that other restaurants have come into
the neighborhood because even if the customers are not eating at his location, he believes
that they will see how updated the area has become, see his restaurant, maybe look it up
online, and next time they are in that area they will want to eat at his restaurant and
hopefully will keep coming back.
Bargaining Power of Buyers
Price is not something that a customer can come in and bargain about. There are
many other lower priced alternatives they could be eating at. And if the lower priced
item of Azia does not interest them they can simply travel to a different type of restaurant.
Threat of Substitute Products or Services
There are few substitutes to the services, cuisine, and dinning experience Azia
offers all in one convenient location. Very rarely could a large work party be held at a
restaurant and have each member of that staff be able to find something they want and have
an enjoyable night out. No many other restaurants have such a popular bar and lounge area
while offering a fine dining experience and also having a very low key, casual sushi bar.
Other sushi bars do not offer the same fine dining experience and other fine dining
restaurants do not offer lower cost alternatives or a popular bar and lounge area with a live
dj until 2am every night.
15

Bargaining Power of Suppliers
If a supplier were unhappy with Azia and threatened to cut off service to them or
demand more money for their products, Azia would have no problem finding an
alternative. However, because Azia is so busy while so many other restaurants are going
under a supplier would be in rough water if they are going to challenge one of their biggest
customers and possibly lose Azia's business. Many other suppliers would be more than
happy to have the amount of business Azia would be giving them.
Industry Competitors
Azia's biggest competition is most likely its neighboring restaurants. However
Azia is open until 2am every night, meaning that even if others choose to eat dinner at a
neighboring restaurant there is still the chance that they may come to Azia for a drink or to
experience the lounge and bar atmosphere if they are not ready to go home. And upon
entering in Azia that customer may decide to dine at Azia instead the next time they are in
that area. Mr. Pham believes they truly have no competitors because no other restaurant
has all of the same elements that Azia does and can not please such a wide variety of
guests.
C.) A Description of Azia's Marketing Strategy
At this time the suggestions that we are going to make for Azia are minor but beneficial.
We have decided this because Azia has a large fan base of repeat customers, changing the
way they run their business could effect their W.O.M. reputation. We believe that the best
short term business strategy Azia should invest in is the expansion into the upper level.
Expanding into the upper level will create a buzz and something new for veterans of the
restaurant as well as get the W.O.M. about the restaurant up again. It will get the
W.O.M. for the restaurant up because once it is completed people will be talking about the
16

restaurant even more, as long as the upper level is at the same level of quality as the rest of
the restaurant. The upper level should not be taking away from another part of the
restaurant, and Azia should take the time to figure out what the restaurant is missing and
what addition would be most successful to the 2 bars, lounge, 1 private dinning area and 2
other dinning areas. A long term business strategy Azia could succeed at would be
expanding to other locations. Being located between uptown and downtown has been
successful so far, but there are big markets of people in the northern and southern suburbs
that Azia could tap into. Azia restaurant could spend some time researching which areas
could be successful to expand into. The best idea would be to look for a place where they
could also purchase the place they were going to be located at and not have to worry about
paying rent or making necessary updates abiding around a lease and alternate ownership.
Each of these business strategies would make Azia successful in the short and long run.
Key Products and Services
Azia offers 3 different areas of the restaurant to dine, drink, and dance. They offer
an large yet affordable happy hour as well as a classy assortment of fine foods, wines, and
liquors. The restaurant constantly maintains a high level of customer service and quality
level of food. Without quality cuisine or quality service, Azia would not be as popular as it
is today.
Products/Service life cycle Velocity
Azia's product and service life cycle is accelerated in order to meet customer needs
in a timely manner and at a high level of quality. In the restaurant industry, quick service is
expected, it is the servers responsibility to get the orders in promptly, is the chef's
responsibility to create a high level of cuisine, and is then the serves level to get the
completed dish out to the customer quickly upon it being made. The life cycle of the
17

products, such as the fish for sushi, must always be the freshest available. Sushi grade fish
needs to be extremely fresh, and because of Azia's great direct communication line with its
overseas vendor, the fish can be ordered and in the restaurant over night, so there is no
excuse to offer a lackluster grade of fish to any customer.
Promotion Mix
Azia does not use any forms of marketing besides its website. Azia does receive
free marketing from websites like citypages.com and other sites or magazines where food
critics have reviewed Azia's atmosphere and cuisine, and up until this point in time Azia
has received nothing but raving reviews. Because the restaurant is so constantly busy, and
attracts so many repeat customers, they see not reason to focus any time or money into
public advertising and rely more on W.O.M.
18

D.) S.W.O.T. Analysis
Strengths Weakness
Researching cost and
effectiveness of Thom efforts to
expanding into the expand and open new
Opportunities upstairs level locations
Thom is at Azia until
2am every night to
insure every guest is
Azia is open until satisfied and can talk
2am and serves food to him personally if
Threats until 2am otherwise
Strengths-
High level of customer satisfaction
Decor
Quality of Food
Quality of service
Diversity in price
Different Atmospheres of the Restaurant
Open until 2am every night
Motivated employees
Weaknesses
Most employees do not have college degrees
Lack of marketing
Only one location
Do not own building location
19

Opportunity-
Expanding into upper level
Growth of the neighborhood
Possible sister restaurants opening in the future
Location near uptown & downtown
Threats
Economy could become worse and drastically effect business
Location owner could decide not to renew lease
A competitor could enter the neighborhood
T.O.W.S. Analysis
Strengths Weakness
As Azia does not want
The diversification of to spend in marketing
Azia’s offerings to and focuses on
customers and the W.O.M. instead, it
possibility of more could possibly benefit
Opportunities growth. from its use.
Threats A large threat Azia Largest external
has is the current threat is a major
economic situation of downturn in clientele
the U.S. but Azia spending due to the
combats this with its economy.
diverse offering to
many different
options. (main dining,
sushi, caterpillar
20

lounge etc.)
E.) Contrast Azia's Strategies with its Closest Competitors' Strategies
Azia has few competitors that employ similar strategies. A big difference is that
Azia has been successful on W.O.M. advertising where as many other restaurants need to
put big bucks into advertising and marketing of their restaurant and could not be busy until
2am every night simply on W.O.M. and repeat loyal customers. Another strategy that sets
Azia apart from its competitors is its different areas of the restaurant. The Caterpillar
lounge area is a revenue center on its own. The Oyster & Sushi bar is also very self
supporting. When Azia is going to sponsor a local charity event they refer to the recorded
sales from each different area and decide based on that information if the event should be
hosted by The Caterpillar Lounge or Anomone Oyster & sushi bar, this being their only
true marketing of either area of the restaurant. Because Azia has a different strategy from
any possible competitors has proven to be very successful for the type of business they are
offering customers.
F.) Define Any Problems That You Foresee Regarding the Strategic
Direction/Planning Efforts of Azia's Restaurant
At this time I would suggest that if it isn't broke don't fix it. Azia has a huge fan
base of customers and changing the way they run their business could effect their W.O.M.
21

reputation. I believe expansion in to the upper level will only create more of a buzz for
veterans of the restaurant as long as it does not take away from any of the other 3 areas of
the restaurant. By establishing these 3 different areas of the restaurant, Azia has a larger
line of revenue and has the opportunity to put money into making a beautiful decor and
quality cuisine with out have to cut funds or costs and lack quality.
Part II – Azia’s Structural and Behavioral Characteristics
A) Observed and Learned Behaviors On-Site
Structure
Azia has a flat organizational structure. Thom Pham is the controller and is also at
the top of organization. He has an Office Manager who reports directly to him from Azia.
Below him are the other managers, and under the managers are the employees.
The organization’s structure creates a comfortable environment where all
employees are able to talk with Thom.
Thom Pham
Office Manager
Restaurant Managers
Servers Hosts Cooks Bartenders
22

Decision Making Process
Thom is the head decision maker. He makes the final decisions and is responsible
for just about everything at Azia. There are a few occasions where others may be used to
help make a hiring decision, but that is normally after the candidates have been narrowed
down and usually only for important positions such as a new floor manager. Thom holds
weekly meetings with all of his staff. He invites the staff to these meetings, and often
attends their meetings as well. It is during these weekly meetings that problems are
discussed and resolved.
Leadership Style/Tendencies
The leadership style at Azia is a mix between authoritative and participative. He is
very honest when talking to employees about the good and bad things they are doing. It is
because of this, that he is seen as authoritative. Thom, however, has been very successful
at Azia by using his authoritative approach. He has an extreme passion for his work, and it
shows.
It is also participative because Thom and the other managers play an active role in
decision making. Even though most of the decisions are made by Thom, the other
managers usually have a good deal of input.
Culture/Ethics
Although Azia does not have a Code of Ethics, the culture and ethics of the
company are strongly based on the values of Thom and his upper management. He
believes that one should, “define the company by your own example.” As time has passed,
he has learned many things by trial and error, but most of all, “We pride ourselves on being
fair,” he says.
23

They try to establish this fair work environment through their weekly manager’s
meetings. During the meetings, the managers discuss what is “fair.” For example, no one
is just fired at Azia. There are three warnings and a review of the employee by two
managers who are not involved in the situation before the employee is suspended without
pay. Thom says that this helps keep their ethics in check and the culture of the workplace
comfortable.
Level of Diversity
Azia has a significant level of diversity and is an equal opportunity employer.
Thom explains that since the restaurant industry is diverse, Azia is able to work without a
diversity program because it inevitably attracts a diverse workforce. Working with people
from different cultural backgrounds is one of Thom’s favorite parts about working in
hospitality and that shows as the staff at Azia is made up of many racial and ethnic groups
of people.
Gender is not an issue at Azia. The wait staff and hosts are pretty evenly split
between male and female. The cooks and managers have more males than females but
there aren’t any glaring examples of having too many males or females.
When I asked Thom about employees with disabilities he said, “We work with the
State and Federal guidelines for ADA. We are obligated to create a work space and
environment for anyone with a disability.” He was unaware of any employee with a
disability and said that employees know how physically demanding jobs at Azia can be.
Consequently, Azia has not received applications from disabled candidates to date.
Employees at Azia are not given time off for religious holidays. Thom said that
employees are welcome to use their paid vacation, or if they choose, unpaid time off for
such holidays.
24

Focus on Learning, Creativity, and Innovation
Azia is very open-minded regarding creativity and innovation. It also understands
the value of employees who can learn new skills. Thom has his managers become learned
about wines and all the different aspects about them since wine sales are a key factor in
Azia’s revenue.
Thom and some of his upper level mangers take an annual trip together as well.
The trips are social but also allow them to “go out to a lot of restaurants and try to see what
people are doing,” he explained. This helps with learning, creativity, and innovation.
Managers have quarterly reviews which allow them to assess their creativity and
innovation, as well as, areas that need improvement. Thom says that training and
education are put into the manager’s quarterly performance to ensure that, at the bare
minimum, they are thinking about learning, creativity, and innovation on a quarterly basis.
25

Internal and External Recruitment Programs
Most of Azia’s employees come from an external search process. Thom said that
they will look internally first, but a lot of times there is not a second in command who can
easily take over an open position. For example, a line cook is most likely not going to
become an executive chef since the executive chef is Thom himself. It is common for a
veteran at Azia to become part of management, but Thom said that it is, “really nice to
have some fresh ideas, too.”
To get those fresh ideas, Azia goes through an external recruitment process. The
process is different depending on the position. To search for managers, Azia begins by
putting advertisements in the newspaper and online at monster.com. Thom will then
personally interview the potential managers and use his own judgment in whether or not
they will be fit for Azia.
For wait staff, an advertisement is also put in the newspaper, and the candidate
must come to the restaurant to fill out an application, and often, the interview is done on
the spot. Thom doesn’t necessarily do all of these, as many times he is out overseeing his
other restaurants and business endeavors. If he doesn’t do the interview, then it is
performed by the manager on duty.
Criteria for Hiring
Azia is always looking for employees with an entrepreneurial spirit, especially in
management positions. They need people who are creative and artistic, because the food
industry flourishes with creative and artistic people. It is not essential to have a college
degree to work at Azia, in fact, most employees do not. On the spot interviews of potential
wait staff employees allow managers and/or Thom to see if the candidate is a good fit. If
they seem competent they are likely to be hired.
26

Training and Development Programs
Azia has training and development programs for its employees. For servers, there
is a minimum three day period in which a new server shadows a current server. If the
manager does not feel the new hire is ready yet, that time period can be extended to five or
seven days. It is also likely that new servers will get a smaller section of the restaurant
before taking on a full load of tables.
New managers normally come in experienced and ready to work, so they receive
minimal training. Typically, they need to be trained in on the systems that Azia uses until
they feel they can do their job competently as Azia is definitely a different restaurant than
most traditional ones.
Criteria for Promotion into Management Positions
Employees many times are promoted to management positions despite the fact that
Azia also dabbles in external recruitment endeavors. There is no objective way to get
promoted. If the position opens up, Thom definitely takes a look at his current employees
before going external. It’s up to him to decide if any employees are fit to become
managers.
Motivation Techniques – Compensation
Both compensation and non-compensation based motivation techniques are used at
Azia. Managers who perform well are offered the option to participate in profit sharing.
Obviously wait staff are motivated on their own as they are working for tips, which makes
up most of their salary. Wages are either at or above a competitive level and given the
affluent clientele that visit Azia, the tips are usually very generous.
27

Approach to Job Design
Jobs at Azia are designed with an entrepreneurial mindset. Thom stated that it is
important to find people who think outside the box. Thinking outside of the box is
supported by profit sharing. The jobs at Azia allow employees to think creatively. For
example, Thom does not want to tell the Bar Manager how to increase bar sales, instead he
wants the Bar Manager to think, “How can I increase the bar sales?”
Use of Teams
Management rarely uses teams at Azia. Hiring is not done in teams, rather hiring is
done by individual managers. All managers have a group of employees that are below
them, so that could be considered a team. For example, the restaurant manager is in charge
of the waiters and waitresses, and the executive chef (Thom) is in charge of other cooks. In
some instances, Azia uses partners when reviewing an employee if they are suspended
without pay, but other than that teams are not widely used.
Method for Assessing Employee Performance
At Azia, Thom has one-on-one reviews with all of his managers on a quarterly
basis. During these meetings, the managers set their quarterly goals. He then reviews
these goals with the managers on a monthly basis. Goals can range from having a certain
number of “excellent” ratings on customer comment cards each month to increasing bar
sales. A manager’s performance at reaching the quarterly goals helps determine if they
will be entered into the profit sharing plan or not. If the manager misses their goals for
severely quarters in a row, it is likely that they will not be part of the profit sharing plan.
This is a big deal because managers can nearly double their salary sometimes by
participating in the profit sharing program. If Thom sees that the manger is not meeting a
goal due to lack of effort, he is likely to exercise some form of discipline. He also
28

encourages his managers to have one-on-one meetings with all the employees below them
as well.
Instead of having a policies and procedures manual for its employees, Azia has an
employee handbook. Thom explained that if they had a policies and procedures manual
they would legally have to stand by it; the handbook simply offers guidelines that the
organization is not legally obligated to follow. He said this is important because it allows
them to fire an employee without having to give three warnings, however, he does not
allow managers to terminate in anger. This means that employees are normally suspended
without pay, and then reviewed by two other managers. If the other two managers agree
that the employee should be terminated, the decision is made final.
B) How a Choice in HR Affects the Rest of the Organization
All hiring is done by managers. This directly affects the rest of the organization.
For example, Thom is known to be more authoritative which might cause him to hire
candidates who react better to that type of management. This, in turn, could affect client
relations. Additionally, if another manager hired an employee who did not respond well to
authoritative management, it might affect employee-employer relations. It is important that
Thom and all other managers carefully select their employees to ensure that both client and
employee relations continue to be positive, thus continuing to make Azia successful.
C) The Strategic Perspective: How Azia’s Choices Help/Hinder its Competitive
Advantage
Thom has had a lot of experience in the restaurant business and seems to have a
sixth sense when it comes down to hiring good, quality people to work at Azia. This alone
has given him quite the competitive advantage over other restaurants. All his employees,
from the managers to the wait staff are quite competent and only have helped Azia meet its
revenue goals. Also, with Thom being the executive chef, his instincts and feel for what
people what have definitely helped Azia.
29

D) Areas for Improvement Regarding Structural and Organizational
Behaviors/Programs
Marketing is an area that needs to be better looked at according to Thom. While
there are a few ads and publicity through the media has helped, there isn’t much in terms of
advertising or marketing. Word of mouth has really helped spur business as well as repeat
customers. Thom thinks that through effective marketing he can gain even more
customers.
30

Part III- Examine Azia's Operations
A.) An overview of Azia's Operations
Location
Azia Restaurant is located in Minneapolis, Minnesota on the corner of 26th and
Nicollet Ave. in-between uptown and downtown. This location is near many businesses
and gets its business from the busy uptown and downtown areas. Being in this location is
an advantage because it offers lots of space to expand operations, local cabs nearby,
parking lot and street parking as well as lunch traffic, and business until 2am.
31

Layout
32

DJ booth
Lounge Bar
Parking
Bathroom
Private
dining backdoor
36.0 in. x 36.0 in. x 36.0 in. x
24.0 in. 24.0 in. 24.0 in.
storage
36.0 in. x
24.0 in.
Up
36.0 in. x
24.0 in.
36.0 in. x
24.0 in.
Main dinning
2nd sushi
area
bar
36.0 in. x
24.0 in.
Kitchen
36.0 in. x
24.0 in.
36.0 in. x
24.0 in.
36.0 in. x
24.0 in.
36.0 in. x
24.0 in.
Main Bar
Sushi Bar
36.0 in. x 36.0 in. x 36.0 in. x
24.0 in. 24.0 in . 24.0 in.
36.0 in. x 36.0 in. x 36.0 in. x
24.0 36.0 in. x
24.0 in. 24.0 in. 24.0 in.
in. x 24.0 in.
24.0
Main door in.
33

Azia's layout has become that of 3 different areas. Upon entering guests are greeted
by a host and either sit in the bar area while waiting for a table, request to eat there, or may
continue to the room behind the bar which leads to the Sushi bar. In the Anenome Sushi
bar guests may enter or exit through the revolving doorway from the outside and are
offered the full restaurant menu. If the guests are not choosing to dine they may walk
through the dining room and into the back lounge area where local djs play until 2am. This
back lounge area is known as the Caterpillar Lounge and also has an entrance from the
outside directly into its private area. Between the Caterpillar Lounge and the main Azia
dining area is a private dining area and an upscale bathroom. The Anenome Sushi Bar and
main dining part offer both booths and tables that are fairly close together but never to the
point of crowding. Seasonally, outdoor seating is available along the boulevard; however
Azia is still able to create a quite, clean, romantic atmosphere even for this outdoor
seating.
Supply & Distribution Chains
Azia has different products delivered multiple times per week depending on the
demand for certain items. For example, Azia receives weekly deliveries of liquor and food
but if necessary can re-order more of a certain item (primarily seafood or sushi fish)
multiple times as needed. Deliveries primary come between lunch and dinner hours as to
not stop any of the restaurant processes. Azia does have a large storage area and two bar
areas so they are able to store large quantities of liquor and other items on shelves as well
as in the basement and kitchen area. They also have many freezers and refrigerators for
storage of meats, fish, and other perishable items. It is the responsibility of the head chef
and sushi chef to place orders and to throw out any expired or risky food. Azia gets most
of its ingredients from Asian Foods, who is the major distributor to the Midwest.
Over the years Azia has found its vendors in many different ways. Whether from referral
and meetings or offers from the suppliers themselves, Azia has been able to meet all the
restaurant needs in an orderly and timely fashion. Mr. Pham says that he is satisfied with
34

his vendors and maintains good relationships with each and would use the same vendors in
any other restaurant he were to open.
B.) Azia's Process Choices
Capacity & Productivity Levels
Azia offers plenty of different options for its guests all in one location. They offer
a full separate menu of wine, beer, champagne, sake, and cocktails. They offer a full all
night happy hour menu of discounted food, half priced sake bottles, wine bottles,
champagne bottles, discounted cocktails, and discounted pints of beer. They offer a huge
menu of appetizers, salad, seafood, meat dishes, sushi, and other Asian classic items. With
these high level of menus Azia must always focus on keeping there productivity levels just
as high. Azia has a large capacity for guests as each dining area can seat over 100. This
includes the lounge area and seasonal outdoor area. Azia has a very high level of capacity
meaning that even during very busy hours Azia does not need to rely on a pager system or
waitlist in order to seat guests and are able to get them seated in a timely manner.
On the occasion where a large number of reserved guests will be attending, Azia
will often seat them in the separate private area near the Caterpillar Lounge or may close
down the Caterpillar Lounge for private parties. Because most of these private parties will
not last until 2am and there is another bar area, guests will not be differed from the
Caterpillar Lounge for long when that is where they are wanting to go. Azia has many
large reservation parties every night and does not always seat them in the private area.
Other times the large parties can be found in the main dining area and in the sushi bar. For
reserved parties, Azia will assign there best servers to the section and will make sure they
receive just as adequate service as if they were a smaller more intimate party of guests.
Level of Standardization vs. Customization
35

Azia's level of standardization can be seen more on a day to day basis. Customer
service and a high quality level of food are standards which Azia tries to meet each day.
The process of serving guests itself is a standard process of greeting, seating, giving out
menus, informing customers about specials, taking beverages orders, taking appetizer
orders, taking meal orders, and bringing each to the guest in a timely manner and
continuing to serve the guest while they are eating. This standard process is ideal for any
successful restaurant and can be an element of accreditation to the success of Azia.
However Azia's level of Customization is what making it unique and a success of W.O.M.
advertising. Mr. Pham is the executive chef of the restaurant and has formed the menu to
what it is today. He has used input of guests, employees, and experiences from others
throughout the process, but claims its success to the consistency of its unique menu. He
gave the example of restaurants that serve seasonal specials or only have certain deals at
certain times of the year (Red Lobster all you can eat shrimp Tuesdays) and says that you
are targeting a type of person who just wants a deal and has to go to your restaurant on
certain days to get it. That type of person does not want to enjoy food and the atmosphere
because they have already been told what to order and what day they have to get it. Azia's
customization comes from the large diverse menu, the ability to get any dish any day or
time of year, the ability for customers to mold the order to their liking and the multiple
atmospheres located in one location.
Quality Program
Azia focuses largely on the quality of service and experience it is providing to
customers each day. Because they are not a highly marketed restaurant they need to keep
up the W.O.M. and repeat guests coming to the restaurant. The best way to insure quality
service is through Azia's employees. Azia hires managers who pay attention to detail and
will help out the wait staff and customers in whatever ways they see necessary to speed up
the service process or create a better atmosphere for that customer. Mr. Pham picks
managers based on people who want the restaurant to succeed and sees a lot of potential in
their ability to do so. Mr. Pham often walks around the restaurant and greets guests himself
and makes sure that everyone is as satisfied with the outcome of the full Azia experience.
36

Azia know that word of mouth is so hugely important to the restaurant so they try to treate
every guest as a food critique writing a review themselves.
37

Azia's Quality \"Gurus\"
Crosby Deming Juran
Definition of quality Conformance to A predictable degree of Fitness for use
specifications uniformity and
dependability at low cost
and suited to the market
Degree of senior Responsible for Responsible for 85% of Less than 20% of
management quality quality problems quality problems are
responsibility due to workers
Performance Zero defects Quality has many “scales”: Avoid campaigns to do
standard/motivation use statistics to measure perfect work
performance in all areas;
critical of zero defects
General approach Prevention, not Reduce variability by General management
inspection continuous improvement; approach to quality,
cease mass inspection especially human
elements
Structure 14 steps to quality 14 points of management 10 steps to quality
improvement improvement
Statistical Process Control Rejects statistically Statistical methods of Recommends SPC but
(SPC) acceptable levels of quality control must be warns that it can lead to
quality used tool-driven approach
Improvement basis A process, not a Continuous to reduce Project-by-project team
program; improvement variation; eliminate goals approach; set goals
of quality without methods
Teamwork Quality improvement Employee participation in Team and quality circle
decision making; break approach
down barriers between
departments
Costs of quality Cost of No optimum; continuous Quality is not free;
nonconformance; improvement there is an optimum
quality is free
Purchasing and goods State requirements; Inspection too late; allows Problems are complex;
received supplier is extension defects to enter system carry out formal
of business; most through AQLs; statistical surveys
faults due to evidence and control charts
purchasers themselves are required
Vender rating Yes and buyers’ No, critical of most Yes, but help supplier
quality audits useless systems improve
Single sourcing of supply Yes No, can neglect to
sharpen competitive
edge
Key Fully Applies Some Application Does not apply
38

C.) Degree of Fit between Current Situations/Strategies and Process Choices
Azia is currently experiencing a solid customer base and continuous business. This
points out that the current process choices they are using are working effectively. Azia's
focus is always on customer service, and the efficiency of the restaurants process is a major
component in a customers dinning experience at Azia. One of the most important current
strategies is the process of taking the order to getting the food/drink on the table for the
customer. Azia knows customers do not want to wait beyond a reasonable about of time
for their food/drinks. Azia has an efficient fast process of the wait staff taking the order
from the customer, typing it into the computer, the order prints out in the form of a receipt
for the bartender or chef and their are designated people behind the bar making drinks for
the house, and designated people in the kitchen to make appetizers vs. entrees and sushi
orders go to the sushi chef. Each of these workers get the orders ready as quick as possible
and it then is the responsibility of the wait staff to bring the finished product back to the
customer. Because Azia has specific duties for each of these employees fewer items are
forgotten to be made, nor do they take as long to be made. Orders are brought out as they
are ready and Azia only hires wait staff with previous experience, so they are quick to put
the orders in and get the food/drinks to their customer. Also the incentive of the tip from
the customer and approval from the multiple management out on the floor of the restaurant
keep the servers motivated to do their best.
39

D.) Azia's QFD Matrix
Each category of the QFD matrix was decided upon because they are critical to a
dining experience at any restaurant. We also spoke with management at Azia to determine
what they thought customers expected and based our categories off of their answers. From
our time visiting Azia and speaking with multiple employees, we were able to understand
what Azia provides within each category to create the rating shown below.
Azia
QFD Matrix
Correlation:
** Strong Positive
* Positive
- Negative
Restaurant Characteristics
Competitive Evaluation
X=Azia
Customer
Importance
M-Sat: 11am-
Customer
Staffing Employee Food Diversity A=La Belle Vie
Uptown 2am, Sun:
to
B=Cosmos
Training quantity
Requirements 3pm-2am (5 is best)
1 2 3 4 5
** -
Food quality 12
ABX
* ** ** *
Time of service 10
AB X
** ** **
Quality of Staff 10
ABX
*
Wide food selection 9
ABX
* * ** * *
Ambience 9
BX A
Prices 10
A BX
* * **
Hours 7
ABX
** **
Location 8
ABX
Importance
8 10 9 10 7 7
Weighting
Technical
Target Values
Evaluation
stay in top range of grading system, based on feedback surveys
(5 is best)
5 A BX ABX A ABX A Relationships:
4 BX A BX B ** Strong = 9
3 # Medium = 3
X
2 / Small = 2
1
40

E.) How Azia's Operations Could Be Improved
Azia is always looking for ways to improve its operations and allow its guests to
have an even better experience coupled with a higher level of customer service. Through
Mr. Pham's daily efforts to critique his wait staff and kitchen staff they are on a positive
track. He is always open to suggestions from guests, employees, and other restaurant
owners. Azia is improving everyday and is able to keep ahead of the competition because
of Mr. Pham's dedication and personal attention to the restaurant. I believe improvements
are minimal and are more of a case by case improvement. The one thing I have noticed as
a frequent guest of the restaurant is that the ink on some menus has worn and can be very
hard to read. Each time I point this out I am given a new menu, but the badly printed menu
should from that point be taken out of circulation. This may be an operational error as the
printer at Azia is not the best quality itself. My recommendation to Azia would be to invest
in a better printer and get the poorly printed menus out of circulation instead of just simply
dealing with the problem when a gust presents it to their attention.
41

Part IV- Systems’ Analysis
A.) Flow of Information
Sales/Marketing:
In the restaurant business, sales and marketing are of utmost importance. Getting
customers in to the establishment is the lifeblood of the business. Mr. Thom Pham
coordinates the majority of the marketing and uses his established connections to do so.
Mr. Pham will have brainstorming sessions with all the managers, the thought process
being that the more ideas from which to pull from the better. For ideas that get used Mr.
Pham has developed incentives. The main goal is to enlarge revenue to all parts of the
restaurant. Keep in mind that this establishment is divided into three main parts:
- The restaurant itself
- Caterpillar Lounge
- Anemone Sushi/Oyster Bar
These three different parts require separate marketing channels, and although there is some
bleed over, they generally reach out to different demographics. For the restaurant, Mr.
Pham uses traditional marketing highlighting its traditional elegance and world class dining
selections, along with a one of a kind experience. He does this via his web page, twin cities
reviews, and half page ads in trendy publications. For the lounge he markets to a younger
demographic and highlights the use of local DJ’s and the uptown nightlife, plus a full
service bar. For the sushi/oyster bar, the newest addition to the establishment, he highlights
that it is the best in the area and completely authentic. Mr. Pham takes a unique approach to
42

marketing, he feels that he always “wants to be something he is not right now” and is never
complacent, this is what fuels him and consequently his marketing strategy. Ultimately he
understands that the more people through the door the healthier the business will be. He
also understands that for certain day parts, this can be improved upon.
Mr. Pham doesn’t see flooding the airwaves as an effective way to get the word out
on any of the parts of the business. Rather he sees public relations and past experience as
vital marketing techniques. PR and charity events are the biggest techniques used, as they
get the name out there, which is the primary goal, establishing word of mouth advertising.
Thom stresses a “market by need” philosophy. Magazine reviews are also a positive source
of PR/Marketing, but he does not like the use of coupons or cut outs, as they project a
different image than he likes. The magazines he likes to get the name in are ones that
would be read by groups and would bring large amounts of people (examples in the awards
below). The website (aziarestaurant.com) offers insight into the restaurant for inquiring
minds with specific links for each individual part of the establishment, and several boasts
about recent awards/success/offerings:
- 2008 Silver Spoon Recipient: Top Three Fusion Restaurant
- 2008 AOL City's Best Date Spot Winner - Anemoni Sushi & Oyster Bar
- Open Tables Diner's Choice Hot Spot
- \"Minneapolis Hot Spot\" MPLS ST Paul Magazine 2008
- Bon Appétit Where to Eat 2003 & 2004
- Premier Sake Bar in Minneapolis
- City Pages 'Best Late Night Dining' 2005
- Food and Wine Special Mention 2003
- The Twin-Cities' Finest Waitstaff
- The Biggest Sake List in Minnesota
43

- Easy access to Metro-Area Hotels
- Enticing Happy Hour Features 3pm-6pm & 10pm-2am
- Valet Service Thursday through Saturday
- Colorful Nightlife Scene
- Ultra-Mod Lounge with DJs seven nights a week
- Full Menu & Dining Service 'til 2am
- A Gorgeous Summertime Sidewalk Café
One aspect the website could improve upon is a list of special events, dj’s, and
additional upcoming events. I feel that this could be covered in a short weekly newsletter
by Mr. Pham, and could help drive traffic. The site also could do a better job of stressing
lunch hours and specials.
Metrics the Azia team pay attention to for developing marketing plans are customer
frequency, size of groups, check size, and new vs. existing customers. Mr. Pham also
understands that his business sees the majority of his customers in the area and downtown
so he doesn’t throw away marketing dollars at customers that he can’t get saying, “fish
where the fish are biting”.
Forecasting:
Another important system that Azia incorporates is forecasting. This is an
exceptionally important aspect of the business, an integral component in running a
profitable and efficient company. Forecasting is used to help the management team
understand trends and growth in the business; this also helps predict product trends for the
future. Azia uses time series analysis to look at past data and find trends. Operating
decisions are guided by customer behaviors. As mentioned in the sales/marketing section,
44

important data is collected including check size, amount of drinks ordered, size of groups
by hour, and new vs. repeat customers, in addition to host of other important metrics. Using
these metrics is key for the short term because it gives an idea of staffing requirements and
product requirements, but it also helps reveal seasonality and hourly production, it also
helps for predictions for year to year. This is a useful tool for giving management an idea
of where the business is headed, helps them align the business accordingly, and reveals
whether or not change needs to be implemented. Forecasting decisions directly impact
operating costs and revenues.
Over the past two years Mr. Pham has seen sales increase 7%, and he has used the
tools at hand to see this and consequently forecast appropriately. He predicts future sales
growth. He currently sets 5% as a benchmark for sales growth to maintain business health.
Important projects have been developed that result in the increase in sales. The latest
project was the addition of the sushi/oyster bar, bringing in a brand new stream of revenue
without incurring much cost. They also recently tweaked the kitchen slightly to allow for
maximum efficiency. Another project that increased sales was a renewed focus on the
lunch crowd and toning the lunch menu. This resulted in a renewed marketing effort to the
lunch crowd, which includes business people looking for a classy place to spend their hour
off. While past trends are the largest indicator used when forecasting, a more subjective
and qualitative approach is used based on opinions/estimates. One example is the use of
different events in the caterpillar lounge which changes the amount of inventory needed.
They use this method to forecast short periods of time and new events because there is no
quantitative data from past years for predicting. Forecasting is necessary to reveal the
45

appropriate amount of staff for a given night to avoid too much staff, an unnecessary cost,
or too little staff, resulting in poor service. Management does not want to make a habit of
having staff on call or sending staff home early, as this may result in irritated employees in
an industry with exceptionally high turnover. Accurate forecasting also plays a major role
in inventory purchase (to be discussed later). In these difficult economic times, almost all
restaurants feel the squeeze as more people eat at home to conserve dollars; however,
although Azia has seen some reduction in traffic, they remain relatively steady due to the
demographic they serve.
Purchasing Inventory:
A restaurant without inventory is not a restaurant at all, so being in stock of the
most popular food and drink items is of utmost importance to Mr. Pham, and essential to
the health of the business. This is a very important system because it ties into everything
that a restaurant is. If inventory is low it results in employee stress and customer
dissatisfaction. There is generally a constant inflow/outflow of food inventory since it is a
relatively small kitchen with a lack of large amounts of storage space. There is more space
with the bars, both sushi and alcohol. Forecasting is used to identify trends for ordering
product, and identifies demand for new product. In terms of purchasing alcohol, two
companies are used. Azia does not use a local vendor, but rather a food dealer who they
order from 4-6 times a week depending on need. Inventory is spiked when special events,
outings, or banquets are expected. For these events, JIT delivery cannot work, and similar
to the toilet paper example from class, inventory must be ordered when a certain point is
hit.
46

For food supply, Azia primarily goes through Asian Foods. They will order mass
inventory to cover broad parts of the menu (i.e. mass quantity of chicken for multiple
chicken dishes). For sushi, Azia uses small and direct dealers (such as American Fish) on
the coasts that can deliver fast/fresh, because as Thom puts it, “experienced sushi people
can taste the difference”. For liquor, Azia uses JJ Taylor. Quantitative forecasting is used to
determine appropriate levels of food/drink inventory and shows what needs to be purchased
on a regular basis and what is more seasonal, certain drinks and sake’s for example.
Ordering is done on a weekly basis and can change weekly. The reason is because
Mr. Pham places cost/quality of food as paramount. If a certain dealer’s cost or quality is
increasing, a different vendor is selected. There is a certain point where Mr. Pham will not
sacrifice quality for a low price. He views quality food as a pillar of the organization and
also understands that dissatisfied customers will cost the restaurant money. It is important
that from top to bottom, everyone at the restaurant is aware of schedules for shipments,
including time/day shipments will arrive. First the suppliers are made aware of Azia’s
needs, and paid accordingly. Accounting is notified and purchases are recorded. The chef’s
are also acutely aware of delivery arrivals, since they are dealing with perishable products.
On that note, manager’s are in charge of making sure Azia follows all health and safety
ordinances. Thom sees this as an ethical issue, making a promise to his customer’s of a safe
environment and top of the line food. He also sees this as a cost effective issue, “In this
continuously litigious society, a lawsuit could be around every corner. We label everything
and are aware of all codes and ordinances to protect what we have built.” Naturally the
47

restaurant industry employs a first in first out system of inventory purchase, to protect
against wasted inventory. Another measure used by Azia to protect the interests of the
restaurant, is consistently cross-referencing liquor sales in the register against liquid in
bottles, to prevent free drinks being given. Each manager is in charge of ordering
necessities for the week because Thom entrusts his people under the belief that he has good
capable people in the right positions to make purchasing decisions. Chefs make the call in
terms of amount of food/sushi. Manager’s make the call in terms of alcohol and place
settings.
B.) Integration of systems
It is clear that these different systems are all related to each other, and all are
focused on the same thing, revenue dollars. Forecasting and purchasing systems are
directly related. Forecasting is used to estimate different levels of business for different
times of the week/year and inventory is purchased accordingly. Previous data trends show
how much alcohol is to be purchased for a given week. The forecasting methods use
previous data and determine the trends in the business. Seasonality, special events, and
holidays are some of the myriad of circumstances that play a role in forecasting and
inventory purchase. The brain trust in charge of forecasting must inform those making
purchasing decisions so they are aware of projected volume. There is a fine line with
purchasing and forecasting, inventory must e received early enough to meet operational
requirements, but late enough to ensure appropriate storage space and product freshness.
The environment is constantly changing, so attention to forecasting is imperative and will
be shown in the inventory.
48

Marketing and forecasting/inventory are also correlated in that strategy is based off
of accurate sales predictions. This allows marketing dollars to be spent bringing in
customers when the restaurant needs them and not during already hot traffic days and
special events. This is also important to avoid over stretching the staff. Marketing is used to
predict customer wants, for example, certain seasonal dishes are planed at suitable times of
the year. On the other hand, increases in marketing must be made known to those making
forecasts so they can plan for promotions.
C.) Big Picture
The systems used at Azia are important to all parts of the company in distinct ways.
Sales/marketing, forecasting, and inventory purchases are all integral to an efficient
restaurant. There is a slim margin for error in this business, estimates and predictions must
be as accurate as possible to keep the business healthy. These systems must be working in
unison to keep Azia fit as a company. Forecasting predicts volume needed in the immediate
future. This allows for appropriate scheduling, inventory purchases, and marketing to keep
costs at a minimum. Having an accurate idea of business levels ensures organization and
flexibility, hallmarks of a successful business that provide a competitive advantage.
Constant deliveries keep costs low and provide inventory freshness which ultimately keeps
customers happy and coming back. Overall the best products at the best prices ensure high
profit margins. All three of these systems are tied to economic factors, which are beyond
Azia’s control, but must be monitored.
49

D.) Strategic Perspective/Competitive Advantage
These systems are effectively incorporated with one another. Forecasting provides a
competitive advantage by being strongly tied to inventory management. Without proper
inventory levels, competitive advantage is hindered. It is crucial to never be out of product
or certain liquors, as this would result in the loss of business in the immediate future. The
location does not provide a competitive advantage in that there is not a large amount of
their key demographic; however there are not a large amount of similar options nearby.
The lack of storage space, which on the surface level would appear to be a disadvantage,
conversely is a competitive advantage, as it brings product in on time and keeps costs down
by reducing lost inventory. Marketing gives an advantage by highlighting the diversity of
Azia’s options. Special event marketing and PR are also important to sales/marketing.
50

Data Flow Diagram
The following is a data flow diagram about the customer experience from start to
finish.
Azia Restaurant’s Customer Service Data Flow Diagram
Server Waiter Kitchen Bar
Server Waiter Kitchen Bar
Gets pitcher
of water from
the bar
Fills pitchers of
Customer Arrives
water
Brings meal
Serves the order to the Receives order
water kitchen
Takes name,
Kitchen head
number in
party. delegates
Asks about task
billing style .
Take drink and Creates
Gives an estimate appetizer order appetizer
of time
Finds open table/
waits for one to
become available Brings drink order Makes drinks
to the bar
Serves
appetizer and
Seats
drinks when
Customer
ready
Receives
order
Brings meal
Takes dinner
order to the
orders
kitchen Kitchen head
delegates
task
Serves dinner
when
Creates meal
Inquires about dining complete
experience. Says good table order
bye
Records order
and creates bill
Checks in with
Delivers the bill to
satisfaction and
the appropriate
quality of mea.l
people
Receives payment. Runs credit
cards, creates change for cash
E.) Areas for Improvement
The number one area of improvement for Azia is in marketing. Although the
business is healthy, it is not operating near max capacity on most nights, and has significant
51

room for improvement. This could be accomplished by a strategic marketing campaign,
spending more marketing dollars on mainstream media. Great potential is there for
bringing in more customers. The main area to stress with a marketing campaign would be
towards group meetings and banquets. They could offer competitive packages and DJ
service while not disrupting other parts of the business. Groups could rent out the entire
lounge or sushi bar. An additional idea would be offering cooking lessons with the chef’s,
as Asian cuisine is increasing in popularity. Another area for improvement is in storage
capacity. While this lack of space ensures efficiency, it could be detrimental during large
scale events. More sophisticated tracking of forecasting and inventory is out there, and
although it may be costly, it would allow for increased identification of trends and easier
sales/growth predictions, while increasing accuracy.
52

Part V- Analyze Azia’s Financials
A.) Income statement
The income statement for Azia indicates that sales revenue has increase each year since
2005. In 2007, sales revenue reached $4,700,945 the highest in the restaurants history.
This is about a 10% increase from the prior year.
With a greater volume of sales the cost of the goods sold has increased each year as
well. Costs of food stayed on average 21.06% of sales revenue from 2005-2007. This is
recently increasing due to the price of food, liquor and transportation.
Gross profit margin as percent of sales decreased from 79.6% in 2006 to 78.1% in
2007. Even though sales increased by over $427,000 gross profit as a percent of sales still
decreased because of the increase in cost of goods sold. Despite this, Azia is still in a fairly
good financial situation, however growth is remaining constant. Gross profit margin did
slightly increase by $271,505 from 2006 to 2007. When 2005’s gross profit is taken into
consideration the increase is by $809,095 from 2005 to 2007. This amounts to a 22%
increase.
Azia’s owner Thom Pham is concerned the rising food prices and its affect on
Azia’s gross margin. In an interview on October 24, 2008, Thom Pham stated that “it is
possible that our gross profit margin may decrease as sales volume increases due to the
rising costs of our fresh seafood and transportation costs”.
Typical to many restaurants, Azia gives bonuses to its managers as an incentive to
maintain increases in sales volume. Thom Pham believes that this is a great way to ensure
that managers will strive to improve the restaurant and quality of service. In 2005 bonuses
were 4.14% of sales. In 2006, that number increased to 8.38%. In 2007 bonuses were
53

7.15%. These numbers were a direct result of performance of the management staff on
sales revenue.
The variable expenses amounted to about 21.71% of sales in 2007. This was
virtually the same percentage in the previous years. The average for the three years is
21.8%.
Fixed expense includes rent for the building that isn’t owned.
Operating profit was 10.76 % of sales revenue in 2007 corresponding to 11.8% in 2006
and 10.36% in 2005. An increase in net income occurred in 2006 when net income jumped
from $375,190 in 2005 to $504395. Net income has been relatively steady since, meaning
growth has leveled out. Net income for 2007 was $505604. Projected net income for 2008
is $511,895. This is an estimated 1.24% of sales revenue. Therefore, again in 2008 growth
is constant.
B.) The Balance Sheet
Azia’s assets include a cash, accounts receivable mostly from catering and renting of
space for private party reservation, also, food and liquor inventory. Long term assets
consist of the property lease and equipment.
Azia’s main liabilities come from its accounts payable it has no long term debt. The
accounts payable includes payroll, as well as food orders that have yet to be paid. Overall
Azia has a relatively small amount of liabilities to equity.
With no debt, the equity is virtually all retained earnings re-”invested” into the
company. While having no debt can be advantageous, it is not exactly the most efficient
way to run any company. With the acquisition of some long term debt, Azia may be
rewarded with paying lower taxes through a debt shield. The tax benefits of a highly
54

leveraged firm will greatly reduce taxes. Azia restaurant has been extremely successful
over the past 3 years with positive growth and cash flows. If Mr. Pham decided to take on
some debt Azia will probably pay a lower rate and the tax shield benefits will improve the
company’s retained earnings. However, Thom Pham has other projects including another
restaurant he has taken out debt for.
The trend of the balance sheet has been consistent over the past three years. Azia has
consistently made increasing profits and retained earnings have grown each year as well.
They have an outstanding cash flow allowing flexibility in the business. This flexibility
has allowed Mr. Pham to acquire other parts of the building as they become available. As a
result the Caterpillar lounge and the Sushi bar have been added bringing supplemental
income and diversity to the customer experience.
C.) Basic Ratio Assessment
Ratio anaylsis is an important factor in determining the financial stability and
strength of any company. In our analysis we use these ratios to compare prior years.
200
5 2006 2007
Current Ratio 3.16 2.66 2.939
Quick Ratio 2.896 1.516 2.655
Inventory Turnover Ratio 90.31 98.18 103.2
Accounts Recievable Turnover
Ratio 10.84 11.62 13.32
Current Ratio Analysis: The current ratio measures how many current assets there are
compared to the amount of current liabilities. It’s a liquidity ratio that measures a
55

company’s ability to pay its short-term obligations. In other words, the current ratio
measures whether or not the restaurant has enough resources to cover its commitments.
Azia’s current ratio has a fairly consistent range. The average current ratio for the past
three years is 2.92. Normally a current ratio can be expected between 1 - 2, but because
Azia is a restaurant, it would have higher inventory costs which will cause the current
assets to be higher, ultimately resulting in a higher current ratio. However, as we will see
later there is a high turnover of this inventory.
Quick Ratio Analysis: The quick ratio measures the short-term liquidity of the company
without taking into consideration inventory amounts. This ratio indicates the extent to
which the company could pay its current liabilities without having to rely on non-cash
assets (inventory). This ratio is more conservative than the current ratio because it
excludes inventory from current assets because some companies have difficulty turning
their inventory into cash. In the event that short-term obligations need to be paid off
immediately, there are situations in which the current ratio would overestimate a
company’s short-term financial strength. In general, quick ratios are acceptable when
ranging between 0.5 – 1. However, the higher the quick ratio the better the position of the
company. In 2007 Azia’s quick ratio was 2.655 therefore AZIA would be able to pay off
265.5% of its current liabilities by liquidating all current assets other than inventory. In
Azia’s case a Quick Ratio would be a more reliable comparison because Azia’s inventory
is food and mostly seafood which have a very short shelf life thus becoming obsolete.
Inventory Turnover Ratio Analysis: Inventory turnover is calculated by taking the total
sales and dividing it by the total inventory. This ratio determines the number of times
inventory was converted into sales during a time period. Since 2005, Azia’s inventory
turnover rate has increased from 90.31 to 98.18 in 2006 and subsequently 103.2 in 2007.
This increase over the years indicates that Azia is doing a better job turning its inventory
into cash in a timely manner. This ratio should be compared against industry averages. A
low turnover implies poor sales and, therefore, excess inventory. A high ratio implies
strong sales.
56

Accounts Receivable Turnover Analysis: Accounts Receivable turnover is calculated by
taking the total sales and dividing it by the accounts receivable. The higher the rate, the
faster Azia is collecting its receivables and the more cash that is available. In 2005, the AR
turnover was 10.84 and this number jumped to 11.62 in 2006. In 2007, the rate further
increased to 13.32. As the rate continuously increases it shows that Azia is becoming more
effective in extending their credit, as well as, collecting any debts owed.
D.) Azia’s Financials versus its “competition”
Owner Thom Pham stated in an interview on October 24, 2008 said “Azia doesn’t
have competitors; we are a unique dining experience and one of a kind in this area.”
However for the purposes of this project we can compare Azia to other restaurants serving
seafood and Asian cuisine.
25 to 30% of overall expenses go towards food costs, so the remaining costs are
invested in maintaining the quality that Azia strives to give its customers. Azia also
focuses on determining a balance between conveniences, saving money and quality when
determining costs. For example, it may be more convenient for Azia to order fresh fish
through a dealers instead of directly from the source, however the opportunity cost may
that the choice deters from the quality. Another example is that it might be more
convenient for Azia to order their deserts, however it would be more cost-effective to
create their own.
A factor that not only affects Azia, but that affects the entire restaurant industry is
the increase in food prices. This affects the fixed costs of the restaurant, as well as,
disposable income of a restaurant’s customer base. Given the current economic situation
families are eating out less. With this known fact, management is working hard to
compensate by giving bonus incentives for increases in sales revenue through quality of
service and unique dining experience that keeps customers wanting to come back for more,
giving Azia a competitive advantage over other typical restaurants.
57

E.) Areas for improvement regarding Azia’s financials
Overall, Azia is doing everything right. The restaurant is making a profit, reducing
liabilities and increasing retained earnings. By changing their capital structure by taking on
some debt they can take advantage of the tax shield. However, as stated before, owner
Thom Pham doesn’t feel as though he’s in a position to expand Azia, but he is into
expanding other projects and ventures using debt as a resource. His hopes for Azia’s
expansion is to own the building he is leasing. Given the opportunity to purchase Mr.
Pham would use debt financing not only to buy the building but to make renovations.
Currently there is no incentive to renovate basement offices and other renovations because
of the fact he doesn’t own the property and doesn’t want to make significant improvements
on a property he doesn’t own.
Historically, Azia’s income statements have shown steady growth. This trend is
expected to return in for 2008. The restaurant expects both revenues and net income to
increase. Operating profits has been greater than 10% of total sales revenue for each of the
past three years. This is very encouraging news because Azia’s operating profit margins
are two to three times greater than the industry averages for revenues going to profits. One
concern in 2008 for Azia is the rising cost of food prices. The restaurant has been able to
handle this increased expense well in 2007 and seems to be well positioned for 2008. Azia
further benefits by going to their suppliers directly and cutting out the middle men, thus
cutting out the middle men costs. An increase in cost of foods sold should not significantly
impact net income.
58

Part VI- Recommendations for Azia
A.) Problem Areas
After extensively looking at Azia in many different facets and angles for the
operations management of the company we have come up with a few problem areas for
Azia and recommendations to help aid these issues. As it was covered in many areas, Azia
has a direct need to begin marketing and not relying solely on word of mouth. Though it is
a great way to have the restaurant become more well known and become exclusive, it is
proven that small dosages of marketing can greatly improve PR and numbers in an owner’s
restaurant. This does not mean that Azia needs to have a coupon campaign, but instead
needs to advertise their food and how good it is. A possible slogan for Azia has been
coined by themselves as “a unique dining experience” and moving with that they could
advertise and bring in more customers. We decided that any marketing done, to maintain
Azia’s pristine reputation would have to be very simple and elegant. This would not
require coupons or gimmicks, but instead to get Azia in the forefront of the customer’s
mind when they are not at the restaurant. If they were to advertise it would have to be local
to the restaurants location. Most likely in Uptown only. This would be a way that Azia
could receive a high cost/benefit. The amount of interest it would peak in customers in the
restaurant would be considerably higher than it is currently and it would not take much
money to implement this sort of thing.
We feel that Azia is very well positioned to react well to it’s current competitive
industry. Thom’s restaurant is within blocks of multiple restaurants that pretty much all
target the same upper class clientele, yet he does not find them as direct competitors. He
stated clearly that he hopes that they do well in their businesses and have many customers
also. He thinks that if someone is visiting those restaurants, they will see Azia, and most
likely inquire at the very least to find out what Azia is about. This positive, symbiotic
relationship makes Azia not so much a competitor, but almost like a coalition or alliance
with the other establishments. This mentality helps them to refer to each other’s specialties
and help each place carve out their niche in the market.
59

While Azia has no main direct competitors, they are in competition of their
customers with about every other restaurant in uptown and midtown. There are so many
that it is impossible to single out a few. Azia does very well despite this fact and plans to
do so. Because of their unique ability to cater to all different kinds of people with their 3
different dining areas and the very diverse menu Azia attracts all kinds of customers with
all different kinds of tastes and budgets. This gives them customer traffic that most other
restaurants do not have. Azia’s niche by its nature is very broad compared to its
competitors.
Azia’s success will primarily be determined on Thom’s current ability to lead and
to innovate. Azia cannot stand still in this economy as no business can. He must continue
to be creative with his foods and keep his restaurant fresh. He has no liabilities long term
and could change this, taking on debt and creating a tax-shelter to help with taxes also
gives him more capital to expand. The space upstairs from Azia could be a really great
addition for the restaurant and could help keep Azia at the top of the list for its current
customers. This must be done soon, possibly the next two years at least. The earlier Thom
continues to innovate, the farther he is from seeing declining profits. It is this kind of
behavior that has made Azia successful up to today, and it is this kind of proactive dealings
that will determine the success of Azia in the future.
60

Part VII- Appendix
Facilities Tour
Upon arriving at Azia for our first facilities tour we parked in the back lot designated for
Azia guests parking. We entered through the main entrance and were greeted by a hostess
who asked us if we would be dinning this evening. We told her that we were here to meet
the owner and she said that she would seat us and go let Thom know that we are here. We
were escorted through the front bar and were seated in the Anemone Sushi Bar at a large
table that was fun and shaped like a boat. Next we were greeted by a server who gave us a
menu of drinks, some happy hour menus, and dinner menus to look at and he said he would
return in a few minuets to take our order. Moments later Thom came over and introduced
himself. He sat down with us and told us a little bit about the history of the restaurant and
answered some of our questions. The server came back over and Thom was very generous
and bought us some appetizers and our first round of drinks. Thom had to get going but
told us to enjoy the food and that when were finished Ryan the head manager would
show us around the restaurant and ask us any further questions we might have. The food
was delicious and Thom had ordered us some of his favorite items from the menu to share.
After eating Ryan came over to our table and showed us around the restaurant. He first
showed us around the sushi bar area where we were seated. He took us threw the main
dinning area which was packed and showed us where the bathrooms were and took us
threw the private dining area, where a party had just left. He then lead us into
the Caterpillar Lounge bar area that was very busy and much louder because a local DJ was
performing for the guests. Ryan then asked if we wanted to see the office area in the
basement and the kitchen. He lead us through the kitchen which was extremely busy and
introduced us to the head chef. He then lead us to the back door and to a stairway which
lead to the basement. The basement showed the age of the building as it had not been
remodeled like the decor of the restaurant. The ceiling was unfinished and pipes were
showing. The desks were cubicle like meaning each person had their own little area very
close to the next. We asked Ryan a few more questions and then headed back upstairs to
61

take some pictures. Over all our first outing to Azia went very well. We were able to meet
with Thom. He treated us to a delicious dinner. We were able to get a personal tour of the
whole restaurant during business hours and had many of our questions answered.
62

Azia Balance Income Statements 2005-2007
Azia Income Statements: 2005-2007
Azia Restaurant
Percent Percent Percent
2005 05 Actual 06 06 Actual 07 07
Food 2,875,182 79.41% 3,348,103 78.35% 3,712,583 78.98%
Liquor 745,541 20.59% 925,363 21.65% 988,362 21.02%
Total Revenues 3,620,723 100.00% 4,273,466 100.00% 4,700,945 100.00%
Avg./wk. 69,629 82,182 90,403
Cost of Goods Sold
Food cost 641,508 17.72% 745,000 17.43% 893,192 19.00%
Liquor cost 115,232 3.18% 126,893 2.97% 134,675 2.86%
Total Cost of Goods Sold 756,740 20.90% 871,893 20.40% 1,027,867 21.87%
Kitchen 407,179 11.25% 393,873 9.22% 439,725 9.35%
Sushi bar 145,304 4.01% 168,548 3.94% 188,569 4.01%
Caterpillar lounge 36,384 1.00% 23,184 0.54% 24,343 0.52%
Main dining room 381,546 10.54% 463,471 10.85% 491,820 10.46%
Maintenance 0 0.00% 0 0
Staff 97,953 2.71% 102,213 2.39% 124,284 2.64%
Management 201,251 5.56% 183,473 4.29% 181,846 3.87%
Net labor 1,269,617 35.07% 1,334,762 31.23% 1,450,587 30.86%
Comp service 238,179 6.58% 245,384 5.74% 225,996 4.81%
Casual labor 6,033 0.17% 12,656 0.30% 5,687 0.12%
Bonus 149,828 4.14% 358,059 8.38% 335,982 7.15%
Tips (758,400) -20.95% (915,691) -21.43% (991,527) -21.09%
Total Labor 905,257 25.00% 1,035,170 24.22% 1,026,725 21.84%
Variable expenses 780,098 21.55% 949,017 22.21% 1,020,718 21.71%
Overhead allocated 369,637 10.21% 429,846 10.06% 603,069 12.83%
Fixed 660,758 18.25% 775,842 18.15% 826,425 17.58%
Total Operating Expenses 1,810,493 50.00% 2,154,705 50.42% 2,450,212 52.12%
Other Income 308,165 8.51% 420,057 9.83% 455,850 9.70%
Other Expenses 81,208 2.24% 127,360 2.98% 146,387 3.11%
Operating Profit 375,190 10.36% 504,395 11.80% 505,604 10.76%
63

Azia 2008 Projected Income Statement
Azia Budgeted Income Statement 2008
Azia Restaurant
2008 Percent 08
Food 3,900,000 78.00%
Liquor 1,100,000 22.00%
Total Revenues 5,000,000 100.00%
Avg./wk. 96,154
Cost of Goods Sold
Food cost 897,000 17.94%
Liquor cost 158,875 3.18%
Total Cost of Goods Sold 1,055,875 21.12%
Kitchen 454,134 9.08%
Sushi bar 190,911 3.82%
Caterpillar lounge 26,171 0.52%
Main dining room 529,000 10.58%
Maintenance 0 0.00%
Staff 127,682 2.55%
Management 99,000 1.98%
Net labor 1,426,898 28.54%
Comp service 233,157 4.66%
Casual labor 0 0.00%
Bonus 260,000 5.20%
Tips (1,003,156) -20.06%
Total Labor 916,899 18.34%
Variable expenses 1,040,773 20.82%
Overhead allocated 1,035,000 20.70%
Fixed 752,500 15.05%
Total Operating Expenses 2,828,273 56.57%
Other Income 460,443 9.21%
Other Expenses 147,501 2.95%
Operating Profit 511,895 10.24%
64

Azia Balance Sheet 2005
Current Assets
Cash on hand 11,000
Cash-Lakeville (16,830)
Cash-Fidelity Bank 39,177
Cash-Lakevill Payroll (27,200)
Cash- Money market 37,464
Accounts Rec- Regular 161,375
Accounts Rec- Employees 300
Accounts Rec- Catering 109,663
Accounts Rec- Rent 62,698
Inventory- Food 25,118
Inventory- Liquor 9,985
Prepaid Expenses 7,539
Total Current Assets 420,290
Long Term Assets
Leasehold Improvements 10,011
Improvements- Reserve (10,011)
Equipment 691,037
Equipment- Reserve (438,165)
Deposits 3,831
Total Long Term Assets 256,703
Total Assets 676,993
Liabilities
Current Liabilities
FICA Taxes Payable 3,756
Fed. w/h Taxes Payable 2,782
State w/h Taxes Payable 1,712
Garnishment Payable 497
Catering Deposits 75,066
Accrued Payroll Taxes 10,839
Accrues Sales Taxes 27,275
Accrued Expenses 11,080
Total Current Liabilities 133,008
Long Term Liabilities
Long Term Liabilities 0
Total Liabilities 133,008
Stockholders Equity
Capital Stock 30,205
Retained Earnings 23,997
Retained Earnings- TP 114,562
Current Year Profit 375,190
Total Stockholders Equity 543,954
Total Liabilities and Stockholders Equity 676,963
65

Azia Balance Sheet 2006
Assets
Current Assets
Cash on hand 11,000
Cash-Provencial Accts Payable 11,463
Cash-New Market 264
Cash-Provencial Payroll (37,632)
Cash-Fidelity Bank 85,487
Cash-Payroll New Market 263
Cash-Savings New Market 1,504
Cash-Provencial Savings 38,551
Accounts Rec- Regular 227,036
Accounts Rec- Catering 90,497
Accounts Rec- Rent 50,263
Inventory- Food 33,131
Inventory- Liquor 14,190
Prepaid Expenses 20,201
Total Current Assets 546,219
Long Term Assets
Leasehold Improvements 78,434
Improvements- Reserve (12,292)
Equipment 876,630
Equipment- Reserve (515,968)
Deposits 4,331
Total Long Term Assets 431,136
Total Assets 977,355
Liabilities
Current Liabilities
FICA Taxes Payable 4,515
Fed. w/h Taxes Payable 3,313
State w/h Taxes Payable 2,026
Accounts Payable-Regular 56,651
Accounts Payable-Other 3,349
Catering Deposits 112,548
Note Payable 88,413
Wages Payable 7,500
Accrued Payroll Taxes 12,873
Accrues Sales Taxes 33,816
Accrued Expenses 4,000
Total Current Liabilities 329,005
Long Term Liabilities
Long Term Liabilities 0
Total Liabilities 329,005
Stockholders Equity
Capital Stock 30,205
Retained Earnings 23,997
Retained Earnings- TP 89,752
Current Year Profit 504,395
Total Stockholders Equity 648,349
Total Liabilities and Stockholders Equity 977,355
66

Azia Balance Sheet 2007
Assets
Current Assets
Cash on hand 11,000
Cash-Provencial Accts Payable (1,648)
Cash-New Market 182
Cash-Provencial Payroll 2,296
Cash-Fidelity Bank 3,699
Cash-Payroll New Market 182
Cash-Savings New Market 1,523
Cash-Provencial Savings 59,286
Accounts Rec- Regular 267,883
Accounts Rec- Catering 53,372
Accounts Rec- Employees 2,115
Accounts Rec- Rent 29,645
Inventory- Food 25,654
Inventory- Liquor 22,228
Prepaid Expenses 18,331
Total Current Assets 495,749
Long Term Assets
Leasehold Improvements 78,434
Improvements- Reserve (16,853)
Equipment 926,336
Equipment- Reserve (599,131)
Deposits 6,081
Total Long Term Assets 394,867
Total Assets 890,616
Liabilities
Current Liabilities
FICA Taxes Payable 4,607
Fed. w/h Taxes Payable 3,296
State w/h Taxes Payable 1,909
Catering Deposits 74,677
Wages Payable 35,000
Accrued Payroll Taxes 13,077
Accrues Sales Taxes 36,096
Total Current Liabilities 168,662
Long Term Liabilities
Long Term Liabilities 0
Total Liabilities 168,662
Stockholders Equity
Capital Stock 30,205
Retained Earnings 23,997
Retained Earnings- TP 162,147
Current Year Profit 505,604
Total Stockholders Equity 721,953
Total Liabilities and Stockholders Equity 890,616
67

Correspondence with Client
9/30
10/24
We met twice as a group with Thom Pham at Azia Restaurant to talk about the
restaurant. The first meeting that we had at Azia was on September 30, 2008. At this
initial meeting, Thom gave us the processes of how he runs his restaurant. He gave us a
complete tour and talked about some of the restaurant features. In addition to the first
initial meeting, we had a second meeting as a group on October 24, 2008. This is where
we got down to more of the business process that happen at Azia. In addition to these
meetings, Mr. Thom Pham was kind enough to communicate with us via email or phone as
needed. The contact that our group via email and telephone throughout the semester are as
follows:
*September 27, 2008: Christine called Thom Pham to set up first meeting
*September 28, 2008: Christine emailed Thom Pham
Hi Mr. Pham,
I talked with the rest of my group today and the earliest most of them would be able to
meet on the 30th, is 4:45pm. We have to wait for some people in our group to get out of
class. Please let me know if this time would work with your schedule. If this time for
some reason doesn’t fit into your schedule we would also be able to meet any time on the
31st. Thanks again for the help on this project.
-Christine H.
*September 28, 2008: Thom Pham responds to Christine’s email
68

Christine,
Christine it was good to hear from you guys. By the way you can call me Thom. And yeah
the 30th around 5:30pm works into my schedule just fine. Why don’t you guys plan on
arriving a little after 5:30 so I can show you around and explain some of the features of my
restaurant. Plus, this will be during the dinner rush so you can see how we operate under
busy hours.
Let me know what you think.
Thom
*September 29, 2008: Christine responds to Thom’s email
Thom,
Meeting at Azia on the 30th sounds great. We appreciate your flexibility. We look forward
to meeting you and touring your restaurant. Just to let you know that a big portion of our
project focuses on analyzing company procedures and financial information. If you are
comfortable with sharing this information it would be greatly appreciated. As for the
financials, we would only be sharing them with our professor, then at your request we
could either return them or dispose of them. Furthermore, if you have a layout / diagram of
Azia it would be very helpful. Any of this information can be emailed to me at your
convenience, or I can stop by and pick it up at a time that correlates with your free time.
Thanks again,
Christine
69

*September 29, 2008: Thom responds to Christine’s email
Christine,
You can have access to any of my numbers at your request. But, I will not have them by
tomorrow’s meeting. I will be able to get them to you at any other time after that. Also, I
will send you our floor plans through email. I look forward to meeting you guys tomorrow.
Thom
*October 16, 2008: Christine emails Thom
Hey Thom,
We have been working on our project and we can upon a couple of questions for you.
Under our sections about Azia’s operations, we have some general questions:
What is the restaurant capacity?
Do you have statistics that measure how effective your sushi bar vs. the Caterpillar Lounge
vs. the main restaurant portion of Azia?
Also do you have statistics that can show business during lunch hours compared to dinner
hours?
How do you determine the schedule for the staff if one of the shifts is more busy than the
other?
I was wondering if you would be able next week to have another meeting with our group?
We have a couple of more things that we would like to discuss with you.
70

Thanks a lot,
Christine
*October 17, 2008: Thom responds to Christine’s email
Christine,
I am sorry to say that I am really busy for the next couple of days. The earliest that I could
possible meet with your group again would be the 24th. I am taking that day off so any time
that day works for me.
Also for the questions that you asked about:
Azia’s seating capacity is currently set at 295. That number can be adjusted though
depending on table arrangements. In addition the Caterpillar Lounge has an additional
capacity of 250. But we could these two separately.
Currently we don’t have any statistics that compare the different areas of our business.
That is a good idea.
My schedules are flexible and change frequently. I make tentative schedules but
employees usually just trade shifts with each other based on convenience for them. All that
matters to me, is that there are employees here when there should be employees here.
I hope that these answers help.
Thom
71

*October 17, 2008: Christine responds to Thom’s email:
Dear Thom,
Actually the 24th works perfectly with our schedule as well. We can also do it at anytime.
So, I guess whatever is most convenient for you will work. Let me know what time you
want to meet.
Christine
*October 19, 2008: Thom responds to Christine’s email
Christine,
Lets shoot for 5:30pm again. If it makes sense, let me treat your group to a
complementary dinner here at Azia, this way you guys could talk about the food as being a
vital part of my business.
I hope that the project is running smoothly.
Thom
*October 25, 2008: Christine emails Thom
Thom,
72

I want to thank you again for taking part of your day off to meet with us again. It is greatly
appreciated. I am speaking on behalf of the group when I say, we had a great time last
night and really enjoyed your entertainment. Thanks again.
Christine
*October 28, 2008: Pat Cattoor emails Thom
Dear Thom,
How is it going. I want to thank you for hosting us last week. Personally I have a couple
of questions to run by you about the company financials. Under labor costs, I noticed that
Azia’s labor has decreased since 2005. I was wondering if there were / are any industry
trends that you could shed light on. I would like to correlate these numbers to current
trends.
Pat Cattoor
73

*November 2, 2008: Thom responds to Pat’s email
Pat,
That’s a good question. I think that this all correlates to how we have become more
efficient as a company and can still run with fewer employees. Some of the current trends
in the industry that you could correlate to our financial statistics would be:
Current financial crisis
Cost of food has gone through the roof recently
I hope that this helps you out. If you need further info, feel free to contact me and I would
love to help you out further on these trends.
Thom
74

Group Responsibilities
Joey Agriesti
• Part II
• Gantt/Pert chart
• Menu
• Pictures
• QFD matrix
• PowerPoint
Pat Cattoor
• Part V and VI
• Financial Statements
• Executive Summary
• Revising, Editing and Formatting
• Executive Summary
• Printing and Binding
Tom Haag
• Part II
• Gantt/Pert chart
• Plan vs. Gantt Chart
• Group Critique
• Company Agreement
Christine Hoene
• Part I and III
• Client Liaison
• Facilities Tour
• Porter’s 5
• SWOT
• TOWS
• Contacts and Pictures
• Correspondences
Kayla Nowlan
• Part V and VI
• Bibliography
• Introduction
• Group responsibilities
• Revising, Editing and Formatting
• Printing and Binding
Evan Schwartz
• Part IV
• Data flow diagram
• TQ matrix
• Meeting Coordinator
75

Gantt Chart Overview and Critique of Overall Group Project Effort
The Gantt chart was a very useful tool for our group. It allowed us to see a map of
our entire plan for the project and it let us make sure that we were on pace with what we set
out to do. It was very convenient to be able to see the separate sections of the paper that
were due and who was assigned to them, as well as the predecessors that had to be
completed prior to certain parts. Meetings with Professor Gaffney and with Thom were
laid out clearly and we were able to pretty much stick to the dates listed on there. Also,
goals such as milestones were noted and allowed us to properly prepare for those. Having
final due dates for things such as the paper and PowerPoint further aided us. Sometimes,
however, the Gantt chart could actually be a bit of a burden. That is, earlier before we
knew what we were getting into, we may have set a due date that was unrealistic, too
demanding, or not at all practical. We were able to update our Gantt chart regularly
though, in order to keep things up to date and to make sure we weren’t getting too far
ahead of ourselves.
As for critiquing our group, we feel that we had both positives and negative
associated with us. Some of the positives of our group were the team aspects and open
flow of communication we had with each other. But along with our positives we also had
negatives. The main thing that our group had to deal with was everyone’s busy schedules.
It was really hard to have weekly meetings because everyone either had a job or other
group meetings already scheduled for when other people could do things. This led to many
times were we would hold meetings with only three or four people. Another negative that
we experienced and had to overcome were people’s egos. There were times during this
project were some people thought that their way is the only way to do things. But, as the
semester moved on, we turned this weakness into one of our teams’ strengths. We realized
how things were working when some people thought they were the only people who knew
what they were talking about. This led us to developing one of main strengths which was
our overall group communication.
76

Individual Statements
Joey Agreisti-
This project has helped me greatly in being able to continue my major in
marketing. As a restaurant, especially such a chic one such as Azia, lots of marketing and
promotion is needed to help boost revenues and have a good customer base. Azia has
really focused on word of mouth and building a good reputation through good reviews
through the media. It definitely has helped the business that they are doing and studying
them and working with Thom has really helped develop my own skills as a marketer and
has also helped my communication skills in interviewing him and seeing how he interacts
with others.
I now understand just how demanding it is to run a restaurant, especially an
independent one such as Azia. It’s so much more than just hiring waiters and cooks. The
financial backing and activity that needs to go on behind the scenes is much more in depth
that I had expected. I see restaurants as a whole, and especially Azia, as being quite a
challenge that has many hills to climb and yet they can be quite fulfilling for the customers,
the staff, and the owner, as Thom has really found his place in the world. Overall, Azia has
made its mark on the Minneapolis-Saint Paul community and that was only possible
because of the way Thom was able to create a project that differentiated itself from the rest
of the field and by making sure that the customers were given first-class treatment in such a
nice restaurant.
I can speak for myself as well as the other five members of my group in that
we have learned a lot about both Azia and ourselves as teammates. Everyone had to
coordinate together to help make this project possible and we had to not only rely on
ourselves, but also rely on others. We also were able to study, in depth, an independent
restaurant that really went beyond the barriers of being “just a restaurant.” Having such an
idea of combining restaurant, bar, and caterpillar lounge really helped our team see that
there is not just one way to do things. With the knowledge that we have acquired from this
77

project, if one of us were to pursue a career in the restaurant business. With our
recommendations for Azia, I believe that we would especially be suited to work for Thom
at this restaurant if that would be something that one of us would want to pursue.
Christine Hoene-
Throughout this semester of Decision Science I have learned a great deal. I have
spent lots of time in class learning everything from how to identify company cultures to
what makes them successful and up to date (mainly through operations). I have spent
much time outside of the classroom building relationships with my new found teammates
and a restaurant owner and his staff.
This class was unique in that we were encouraged to actively participate in class by
answering questions and coming up with ideas and solutions to these questions within our
group. For me personally this in class time discussing and brainstorming was a great ice
breaker for me to get to know my group on a better level. Because we were able to laugh
and communicate during class time it made it easier for us to focus and work efficiently as
a group outside of class. This is very different from other classes I have taken here at St.
Thomas. Rarely do I get to know my peers before the work on the project actually begins,
and rarely do we get to talk and get to know each other during class time through group
exercises. Also, rarely does a professor make me feel comfortable expressing my opinions
or sharing interesting stories with the class pertaining to the topic we are discussing.
I believe this has been the most successful group I have worked with so far in my
academic career because we got to know each other during class and didn’t need to waste
time outside of class catching up or getting to know each other better. I also believe
because we had such a fun company to do that the work load and meetings at the restaurant
were actually enjoyable. I will leave this class with new knowledge and ideas of how
management runs companies and what means of operation make them successful, and I
will also leave with 5 new friends who I have enjoyed working with and would happily
work with on another project again!
78

Evan Schwartz-
This course was very interesting and was quite different from most of the courses
I’ve taken here at college. Because of this difference, this class has really stood out and
I’ve learned quite a lot from it, especially through the project. I’ve worked on team
projects before, but this class took that team approach to a whole new level. The level and
depth of the project has been rivaled by none of my other group projects. The coordination
that needs to be applied to events is something that I had overlooked previous to this
course. I learned a lot about group dynamics and the importance of having good team
chemistry. It’s one thing to be on your own and to have to study for a test on your own
accord but it’s another to have others depending on you to meet deadlines and to produce
good quality work. I think that this helped my ability to communicate with others and
allowed me to use my talents and abilities in combination with other group members’
strong points.
As well as gaining experience in group work and in working for a team, I
also obviously learned quite a bit about Azia itself. Through Thom and all the research that
was done, I was able to grasp just what it took to run such an operation, all the way from
the operation management itself to the food to the financial activity going on behind the
scenes. It was interesting to see the parallels between running a business such as a
restaurant and working for a team in a group project such as this. It’s definitely been quite
the semester and I am quite proud of the work that was done.
Tom Hagg-
Throughout this semester you (Professor Gaffney) have challenged us to think
critically about numerous situations that might occur in real world business operations.
You have taught us that companies and people have to be ready to adapt to new and
challenging situations. For example: the I-tech discussions we had. That was a perfect
79

example of how a once good company realized that they had to change or die. You made
me understand that once I graduate college and get a real job, not everything is going to
perfect. I have to be able to adapt.
Throughout the course of this project I learned how important a good line of
communication can be. When companies don’t have good internal communication they do
not run as smoothly or effectively. This is especially true for the company that we did for
our project. In the food / beverage industry communication is critical. You have to be able
to communicate to your employees and with your consumers to understand their likes and
dislikes. Like in any other industry, the customer is king. Having open and free dialogue
with them is very important. This leads to another thing that I learned during this project.
People sometimes have to put their egos aside in order to achieve a better workplace and
company.
As this project went along, I feel that I grew as a student and as a perspective
business world employee. I feel that I increased many of my attributes that will make me a
stronger candidate for future job openings. Like I said in the previous paragraph, I feel like
I have really strengthened my ability to communicate with my peers. Another way that this
project has made me more of an attractive employee is, it challenged me to become a better
critical thinking. Critical thinking is key to analyzing many daily busy functions.
Patrick Cattoor-
The assignment has most definitely contributed to my ability to analyze issues
relating to multiple facets of business. From looking at the operations from an outside
perspective we come in with general knowledge learned in class room settings, however
once we started our in-depth analysis of Azia we were thrown into the real world of
business. I was able to apply the classroom knowledge gained from management class and
the accounting courses I have taken and apply it to a real business. While focusing on the
financial section I learned many aspects of private accounting that I have yet to be taught. I
was able to apply my foundation of knowledge to the situation and learn how Azia does it.
80

It would be hard to teach private accounting in a class room setting because there are so
many different ways to record financial information, different layouts, and different
account names. They all start with the same information and end with net income;
however how they get from point A to point B depends on the firm and the accountant.
This project has given me a greater appreciation for the restaurant business and all
private businesses as a whole. From accounting and financial statements to managing wait
staff and kitchen staff and bar staff to training the staff to creating a diverse menu and
quality experience for the customers, Thom Pham, owner of Azia, has a lot on his plate.
We were able to take a restaurant and look at it from a whole new perspective. Not as a
customer but as business professionals with some insights and recommendations to offer.
I am not sure that, especially after our in-depth analysis, anyone would want to
work in the restaurant management business. However, this analysis has prepared our
group to know what it takes to run a successful restaurant and all that goes into managing
people, suppliers, customers, etc.
Kayla Nowlan-
Through our team’s in-depth analysis of the restaurant Azia I have gained great
insight into the restaurant world and just what it takes to run a business. There are so many
parts to a company with many details. It really takes someone with great management
skills to run a business, manage people, and satisfy customers along with making a profit.
While analyzing the issues Azia faced relating to the financial section of this paper, I
realize that private companies definitely keep their accounting records differently than the
ideal way. Publicly traded companies must adhere to GAAP standards while private
companies make their own system, which just has to be good enough to fill out their taxes
and keep a record of sales and expenses. Through working with Azia’s hired accountant, I
learned where to look for things I couldn’t find because I thought they should be
somewhere else. I gained a greater insight into the relationships between the financial
statements.
81

I was skeptical when Taem Nowlan first began this project on Azia. I wasn’t sure
that this would be a good business to base our semester long project on. However, my
thoughts have change, although I probably will never eat there again (because I despise
even the smell of seafood) I have gained a great appreciation for Mr. Pham and all that he
has done, from the growth of his restaurant to the impact he has had on the community.
This project has definitely added value to my knowledge of running a restaurant,
especially in the financial statement sector. I learned quite a bit about record keeping and
locating. As a potential candidate to be hired by Azia, I don’t think I would like the job.
First of all they have high standards for their waiting and serving staff, for example a
minimum number of years in the profession. Secondly, the atmosphere is just not my
type. However, I am positive that I will use my knowledge of the restaurant business and
apply it to other companies while perhaps doing audits when I become an accountant.
When it comes to working in an actual restaurant, I don’t think I will take on that
opportunity.
Overall this project has helped me grow as a team member and a leader. I believe
that I have acquired even greater insight as to how to manage a team of 6 over how to
manage a restaurant.
82

Thank you letters to Thom Pham
November 26, 2008
Thom Pham
Chef/Owner
Azia Restaurant
2550 Nicollet Ave S.
Minneapolis, MN 55104
Dear Thom,
Thank you very much for all of your help with this project. Our meetings with you
were informative and helpful in providing us the information that I needed to complete my
parts of this project. Also, your flexibility and willingness to communicate with me via
email whenever I needed a quick question answered was extremely helpful and much
appreciated.
Your enthusiasm for Azia Restaurant made it enjoyable for me to work on this
project and to learn about the company. Your honesty in discussing the restaurant and
looking at it with a critical eye made this project even more interesting to work with you
on. I learned a lot about running a restaurant and it was interesting to me to discover just
how much goes into making Azia a success. My parts of the project focused on Azia’s
financial statements. Thank you for sharing the financial statement information that we
needed to complete that portion of our project.
You were a great help to all of us on this project and it helped everything run
smoothly; it is greatly appreciated. Thank you again.
Sincerely,
Pat Cattoor
University of St. Thomas
Mail 5405
2115 Summit Ave.
St. Paul, MN 55105
83

November 26, 2008
Thom Pham
Chef/Owner
Azia Restaurant
2550 Nicollet Ave S.
Minneapolis, MN 55104
Dear Thom,
Thank you very much for all your help during this entire project. Your
correspondence with us has been extremely helpful and I greatly appreciate your
willingness to meet with us.
I have enjoyed learning about Azia and the restaurant business in general. My part
of the project was to focus on Asia’s structure and behavioral characteristics. The
information that I gained from your insights, especially about the hiring process, were very
interesting and I appreciate your openness in discussing them. Your passion for your job
shows, and it makes me eager to begin my career after college.
This project has been a wonderful experience for me, and it would not have been
possible without you. Thanks again for all of your help.
Sincerely,
Joe Agriesti
University of St. Thomas
Mail 2650
2115 Summit Ave
St. Paul, MN 55105
84

November 26, 2008
Thom Pham
Chef/Owner
Azia Restaurant
2550 Nicollet Ave S.
Minneapolis, MN 55104
Dear Thom,
Thank you for taking time out of your busy schedule to continually meet with our
group and provide us with the information about your company. Your flexibility and
enthusiasm has enabled us to accomplish our project successfully. I feel that our group has
gained important insights on how a restaurant operates, which will help us as we grow in
our careers.
Based on what we have learned from our meeting with you, as well as our research,
I feel our group now has a stronger knowledge of how Azia operates. It is interesting to
learn about how a restaurant, specifically located within a multi-cultural community,
operates differently from other companies.
Thanks again,
Tom Haag
University of St. Thomas
Mail 5449
2115 Summit Ave
St. Paul, MN 55105
85

November 26, 2008
Thom Pham
Chef/Owner
Azia Restaurant
2550 Nicollet Ave S.
Minneapolis, MN 55104
Dear Thom,
I can’t thank you enough for agreeing to work with us on this project. It has been a
pleasure. We’re just a bunch of college kids, but we truly hope that our project will be
beneficial to you in some way. Azia has transformed so much in the last few years and I
can’t wait to hear your decision regarding possible expansion.
I appreciate your patience in dealing with our constant flow of questions and your
dedication to helping us see our project through to the end. I also thank you for taking the
time to share your extensive and valuable business knowledge and experiences with us.
Sincerely,
Kayla Nowlan
University of St. Thomas
Mail 6024
2115 Summit Ave
St. Paul, MN 55105
86

November 26, 2008
Thom Pham
Chef/Owner
Azia Restaurant
2550 Nicollet Ave S.
Minneapolis, MN 55104
Dear Thom,
Thank you for your time and effort in helping us with our school project. As
owner, chef, and restaurateur I understand your time is valuable and important. I also
would like to thank you for the valuable learning opportunity you have provided the group
and I. Your stories, experience, and insight on management gave me a learning
opportunity that I could not have come across in any text book. You’re a great guy and a
hard worker, and I know Azia will continue to be successful under your continued
leadership in the future.
Thanks again,
Evan Schwartz
University of St. Thomas
Mail 0813
2115 Summit Ave
St. Paul, MN 55105
87

November 26, 2008
Thom Pham
Chef/Owner
Azia Restaurant
2550 Nicollet Ave S.
Minneapolis, MN 55104
Thom,
Thank you for taking time out of your hectic schedule to help us on our group
presentation. I want to personally thank you for allowing us to come to Azia and have a sit
down meeting with you. I also, want to thank you for allowing us to present information
about your company with the rest of my classmates. I hope that this project helps you as
much as it helped us.
The atmosphere and workforce at your restaurant are evidence that you are a great
leader and motivator. Hopefully some day I can work in such a great atmosphere as your
current employees. I wish you and Azia the best of luck on your future endeavors.
Sincerely,
Christine Hoene
University of St. Thomas
Mail 5844
2115 Summit Ave
St. Paul, MN 55105
88

Azia’s Menu (everything included)
Starters
• TUNA CARPACCIO
Thinly sliced Ahi, flash seared and served over fresh mango mint sauce
o
• CRANBERRY PUFFS
Cream cheese wontons gone wild
o
• PING, PANG, PONG WINGS
Sesame, Teriyaki, Oyster, or Curry
o
• FRESH HERB ROLLS
Oceanside spring roll with dynamic herbs, halved shrimp, and shredded
o
chicken
• MALAYSIAN SKEWERS
Malaysian spiced marinated chicken grilled and served with a tangy peanut
o
sauce
• ORANGE BEEF TENDERLOIN SATAY
With citrus nuoc cham
o
• POTSTICKERS
Stuffed with chicken, pork, or vegetables
o
• CALAMARI
Cookie-breaded and served with hai nuoc cham
o
• WOODEN SKEWER SCALLOPS
Rolled over lemongrass then pan-seared and served with asparagus
o
• SHRIMP CRISPROLLS
A unique spin on traditional the eggroll
o
• AVACADO CRISPROLLS
Our vegetarian option crisprolls
o
• TUNA TARTAR
Sushi-ahi stung with wasabi
o
• CRAB RAGOON
Dim Sum sized dumpling
o
• OYSTER ON THE HALF-SHELL
An assortment chosen fresh daily by the chef
o
• CRAB CAKES
89

An Azian version of the coveted Maryland style crab cake
o
• STEAMED MUSSELS
In yellow curry and black bean sauce
o
Soups
• JAPAN - MISO
Lightly fermented traditional broth with seaweed and soft tofu
o
• CHINA - UPLANDS WONTON
Pleasent herbed broth, pork, and shrimp dumplings
o
• VIETNAM - PHO
Generation have perfected the balance of this intricate flat-noodle soup
o
• AZIA'S \"SPANKER\" SOUP
Cranberries, asparagus, and Azian mushrooms
o
• SEAFOOD NOODLE
Fragrant seafood broth with egg noodles and vegetables
o
Salads
• FESTIVAL SALAD
Fresh avacado, tomato, and quail egg tossed with greens in a mixed-berry
o
vinaigrette
• FILIPINO
Chicken or steak; tropical greens, sliced jalapeno, and tosted cashews
o
• SHRIMP CRISPROLL SALAD
Our shrimp crisp rolls atop rice noodles, fresh basil, cilantro, and spinach
o
• SEARED AHI OVER MIXED GREENS
(also available with grilled salmon)
o
• CRISPY CRAB SALAD
Fresh lump crab on mixed greens with Thai chili vinaigrette
o
Azia Creations
• GRILLED PORK TENDERLOIN
With sweet potato mash and asparagus
o
• SPICY LETTUCE WRAPS
90

With barbecued meats and fresh grilled vegetables
o
• KANNON STEAK & POTATOES
Authentic French-Viet wok steak with hand cut crispy potatoes
o
• SWEET POTATO STEW (Vegan)
A rich, slow stew with jackfruit, coconut milk, tofu, and mock duck
o
• RACK OF LAMB
Served with a blend of exotic asian mushrooms
o
• GRILLED DUCK BREAST IN GREEN CURRY
Set on Bow Thai pasta
o
• AZIA TENDERLOIN
Wok finished on a forest of broccoli
o
Seafood
• CARMELLA
A bronzed mixture of pecans, shrimp and coconut, set on vermicelli pasta
o
and asapragus
• DIVER SCALLOPS CHOWMEIN
Tender scallops and mixed vegetables served over crisp noodles
o
• LEMONGRASS MONKFISH
Sauteed with hot and spicy sauce and set on bow Thai pasta
o
• BACON WRAPPED SCALLOPS WITH DUCK
with a blackberry sauce
o
• CEDAR GRILLED SALMON
plank-smoked in-house
o
• HALIBUT CHEEKS
Bowtie pasta, chive blossums, xu xu and pineapple mango relish
o
• GRILLED SEA BASS
Topped over mango-mint sauce and served with sauteed spinach
o
• PASSION PRAWNS WITH MASHED TARO ROOT
Seared with garlic, served with grilled asparagus
o
• YELLOW-FIN TUNA
Grilled Tuna, Burmese curry paste, coconut milk, and select vegetables
o
• INDONESIAN SHRIMP, SCALLOPS, & CALAMARI
In a Spice-Islands inspired sauce
o
91

• *PACIFIC BLUE (to share)
All of the best fresh catch fish of the ocean, crafted carefully by the chef
o
• LOBSTER IN BLACK BEAN SAUCE
Fresh Lobster in garlic black bean sauce
o
Azia Nouveau Dishes
• BOW THAI PASTA
The flavors of peanut, coconut, and sing ha beer meld in this fusion dish
o
• SUKIYAKI
The Nagoya-style \"One-pot-meal\" with select cuts of beef, shiitake
o
mushrooms, and glen veggies
• PAD THAI
Fiery pad-noodles, green scallion, bean sprout, egg, and crushed peanut
o
drizzled with lime
• CRANBERRY CURRY
A wintery fusion dish
o
• VIETNAMESE COCONUT CURRY
Marinated in tumeric, served with broccoli
o
• THAI CURRY RED OR GREEN
(With jalepeno & button mushrooms) A bold step into deep-color curries
o
• HOT & SPICY LEMONGRASS
Grilled with field vegetables
o
• TERIYAKI
Peapods, carrots, bell pepper, onion, and mushroom in classic teriyaki
o
• MONGOLIAN
Straw mushrooms, peapod, tomato, water chestnut, bamboo shoots, and
o
onions
• NUTTY CHICKEN
Roasted Asian watercress, almonds, cashews, peanuts, and garlic in a tangy
o
ginger sauce
• BASIL SUPREME
92

(Boyan Island) Pineapple, mushroom jalapeno, and large chunks of green
o
and red pepper
ChinaTown Classics
• SESAME
Batter-fried chicken breast in sesame sauce, served with crispy noodles and
o
steamed rice
• SWEET & SOUR
Batter-fried and topped with crush-pressed sweet and sour, bell peppers,
o
and pineapple
• MUSHROOM PURSE
• WOK SEARED VEGETABLES
• SPINACH & PINE NUTS
• BROWN RICE
• JASMIN/HERBED RICE
• GRILLED ASPARAGUS
• BRUSSEL SPROUTS
• WOK CHINESE BROCCOLI
• HAND CUT CRISPY POTATO
Delectible Desserts
• AZIA RESERVE ZINFANDEL CHOCOLATE
• LEMONCELLO TART
• CHOCOLATE CHEESECAKE
• STRAWBERRY TUXEDOS
• JACKFRUIT CHEESECAKE
• SWEET RICE WITH FRESH MANGO
• ALMOND JOY
• SWEET RICE & COCONUT ICE CREAM
• BANANA ROLLS
• ICE CREAM (Ginger, Coconut, or Green Tea)
93

• MANGO SORBET
• FLAN
• CHEF’S FEATURE DESSERT
Dessert Wines
• ST. SPUPERY MOSCATO
• QUADY ELECTRA
• ALEXIS BAILLY RATAFIA
• FAR NIENTE DOLCE
• INNISKILLIN SPARKLING ICE WINE
• INNISKILLIN VIDAL ICE WINE
Port/Sherry
• SIX GRAPES
• ALVADA MADERRA
• '83 DOW'S
• GRAHAM 10 TAWNY
• OLOROSO SHERRY
• RAMOS PINTO PORTO RUBY
• RAMOS PINTO VINTAGE '97
• DOW'S '00
Drink & Food Specials
• 1/2 Priced Appetizer Menu
• 1/2 Priced Specialy Cocktails, Sakes, Select Wine
• $3 Tap Beers
• Sushi
$4.95 Philadephia Roll
o
$4.95 Spicy Tuna Roll
o
Hot Drinks
• KIOKI COFFEE Brandy & Kahlua make our house roast even darker
94

• WOOLY BEAR Coffee, Dark Creme de Cocoa, Kahlua, & Brandy
• JAVA DARK & K Dark Rum, Kahlua, & Double Roast
• TURTLE MINT Southern Comfort, Stoli, & rich minty hot chocolate
• IRISH COFFEE Jameson's Irish Whiskey, & Baileys
• IRISH RED & GOLD Bailey's, Frangelico, & Coffee
• ALMOND JOY Amaretto di Saronno, Malibu, & hot chocolate
• HONEY POT Chamomile & Barenjager
Specialty Teas & Coffees
We are well known for our high quality and rare teas, stop in and enjoy a pot today!
Azia Teas
Tea Types Varieties
BLACK TEAS Black Lychee, Ginger Peach, Spiced Orange, Chai
GREEN TEAS Organic Green, Houjica
JASMINE TEA Jasmine Special Grade
OOLONG TEAS Ti Kwan Yin, Fuijan Oolong
HERBAL TEAS Chamomile, Mint Petal, Azia blend, Saigon Sunrise
RARE & NOTABLE TEA Pearls of Wisdom
Due to the rarity and uniqueness of some teas, occasionally certain varieties may be hard
to find.
Specialty Coffees
• Cappucino
• Latte
• Mocha
• Vietnamese (Ca Phe Sua Da)
• Cubano
A few of our Single Malt Scotches
• BALVENIE 12 - 15 yr
• DALWHINNE 15 yr
• GLENLIVET 12 - 18 yr
95

• GLENFIDDICH 12 yr
• LAPHOROAIG 15 yr
• MACALLAN 12 - 25 yr
• GLENMOREANGIE 12 - 18 yr
• AUCHENTOSHAN 10 yr
• BOWMORE 12 - 17 yr
• LAGAVULIN 16 yr
A sample of our Cognacs & Brandys
• COURVOISIER Vs
• COURVOISER VSOP
• REMY MARTIN VSOP
• HENNESSY VSOP
• MARTELL CORDON BLEU
• HENNESSY VS
• REMY MARTIN XO
• REMY MARTIN LOUIS XIII
Wine List...A Sample of our Selections
• WHITE WINES
Kinsen Plum, Principessa Gavi, Louis Latour Pouilly-Fuisse, Henri Boillot Les
o
Charmes...
• CHAMPAGNE & SPARKLING
Cristalino Brut, Gosset Celebris, Piper Heidsieck, Dampierre Grand Cru...
o
• SAUVIGNON/ FUME BLANC
Kim Crawford, Lageder Lehenhof, Frogs Leap, Ferrari Carrano...
o
• CHARDONNAY
Steele Cuvee, Luca, Kistler, Far Niente, Jarvis...
o
• PINOT GRIGIO
Riff, Lageder, Adelsheim...
o
• RIESLING
Yalumba, Eroica, Brooks...
o
• CABERNET SAUVIGNON
Mas Carlot, Jarvis Reserve, Viader, Mt. Veeder...
o
96

• PINOT NOIR
Torii Mor, Morgan, Etude, Schubert...
o
• ZINFANDEL
Amphora, Seghesio...
o
• SYRAH, SHIRAZ, PETITE SIRAH
Iron Stone, Luca Syrah, Geyser Peak...
o
• MERLOT
Windy Ridge, Genesis, Stag's Leap Winery...
o
Ports
• SIX GRAPES
• ALVADA MADERRA
• '83 DOW'S
• GRAHAM 10 TAWNY
Our Ports are available in 3oz. servings or by the bottle.
Dessert Wines
• BEAULIEU
• ST. SUPERY MOSCATO
• QUADY ELECTRA
• ALEXIS BAILLY RATAFIA
• FAR NIENTE DOLCE
Private Label Wines
• AZIA FORT ROCK RED Washington
• AZIA RIESLING '03 Washington
• AZIA CABERNET SAUVIGNON '03 Columbia River
• AZIA CHARDONNAY '03 Columbia Valley
• AZIA SYRAH '03 Columbia Valley
• AZIA SANGIOVESE '03 Washington
• AZIA VIOGNIER '04 Columbia Valley
• AZIA CABERNET FRANC ROSE '04 Columbia Valley
97

Sakes
• Takara Nigori
• Umenishiki
• Ichinokoura \"Ace Brewery\"
• Suishin
• Sawanoi
• Onikoroshi \"Demon Slayer\"
• Mineno Hakubai \"White Blossom on the Hill\"
• Masumi
• Ohyama \"Great Mountain\"
• Kariho
• Otokoyama \"Man's Moutain\"
• Harushika \"Spring Deer\"
• Ama No To \"Heaven's Door\"
• Tentaka Kuni \"Hawk in the Heavens\"
• Takatenjin \"Shrine of the Valley\"
• Fukocho \"Moon on the Water\"
• Mukune \"Root of Innocence\"
• Rihaku \"Wandering Poet\"
• Rihaku Nigori \"Dreamy Clouds\"
• Ginga Shizuku \"Divine Droplets\"
Martinis
• THOM'S TAMARIND
• MERCY
• NEVER, NEVERLAND MIX
• GINGER MARTINI
• BLUE FIN
• CLASSIC SIDE CAR
• SEX AND THE CITY COSMO
• MOJITO
• RED CURTAIN GINSENG
• HIBISCUS PASSION
98

• STRICTLY BALLROOM
• MOULIN ROUGE
• SAKE MARTINI
• ARGENTINA TANGO
• DIRTY DANCING
• A ROSE BY ANY OTHER NAME
• INNISKILLIN
• AZIA CAPPUCINO
• CHOCOLAT
All martinis are 10.5 oz
Specialty Cocktails
• CAPRINHA
• AZIA GREEN TEA
• NICOLLET SLING
• GREEN SILK SOUR
• HELLO PUNCH
• EMPORER MOJITO
• MY THAI
• SHIPWRECK PUNCH
• PACIFIC ISLAND CELEBRATION
• HYPER- Absolut Mandarin with energy drink
• SERENITY- Stoli Raspberry with calm
• VIBRANT- Midori, Malibu, fresh lime and orange with immune
• LYCHEE-TINI- 3 Vodka and fresh Lychee
• CLARITY- 3 Vodka with mango juice and foucs
• SAKE COSMO- Sake, Couintreau, with a splash of cranberry
All singnature cocktails are 14.5 oz
Tap Beer
• CARLSBERG PILSNER
99

• NEW CASTLE
• ANCHOR STEAM
• AMSTEL LIGHT
• SUMMIT EPA
• SUMMIT SEASONAL
Bottled Beer
• SAM ADAMS LIGHT
• ASAHI
• FLYING DOG
• JAMES PAGE AMBER
• HEINEKEN
• SING TAO
• DOS EQUIS AMBER
• PILSNER URQUELL
• NEGRA MODELO
• CORONA
• CORONA LIGHT
• BELL'S PORTER
• MOOSE DROOL
• KRONENBURG
• STELLA ARTOIS
• MAREDSOUS
• GROLSCH
• KIRIN ICHIBAN
• SAPPORO
• TAJ MAHAL
• GUINESS
• DUVEL ALE
100

101

Contact Information
Azia Restaurant
Address/ Number:
2550 Nicollet Ave
Minneapolis, MN 55404
Owner/Executive Chef: Thom Pham
Email: TPham@AziaRestaurant.com
Cell: 612-998-6958
Head Manager: Ryan Montgomery
612-813-1200
Office Manager/Personal Assistant: Liz
612- 813-1200
Office Number: (612) 813-1200
Location Hours:
Monday - Saturday: 11:00AM to 2:00AM
Sunday: 3:00PM to 2:00AM
102

Gantt Chart
Resource
Task Name Duration Start Finnish Predecessor Name
Rough Gantt 3 days 9/15/2008 8:00 9/17/2008 17:00
Weekly Team Meeting -
Milestone 1 day 9/17/2008 8:00 9/17/2008 17:00
First Milestone and Gaffney
Meeting 2 days 9/21/2008 8:00 9/22/2008 17:00 1
Weekly Team Meeting - Gantt 1 day 9/24/2008 8:00 9/24/2008 17:00
Final Gantt 1 day 9/29/2008 8:00 9/29/2008 17:00 1,2
Visit to Azia 1 day 9/30/2008 8:00 9/30/2008 17:00 3
Team Meeting: Presentation 1 day 10/1/2008 8:00 10/1/2008 17:00 4
Weekly Team Meeting -
Presentation 1 day 10/1/2008 8:00 10/1/2008 17:00
5 Minute Presentation 1 day 10/3/2008 8:00 10/3/2008 17:00 5
First Client Review Session 1 day 10/6/2008 8:00 10/6/2008 17:00 4
I. Organization - Strategic
Perspective 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Christine
II. Firm's Structure and Behavior 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Tom,Joe
III. Operations 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Christine
IV. Assessment of Systems 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Evan
V. Financials 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Kayla
VI. Recommendations 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Pat
VII. Appendix 45 days 10/8/2008 8:00 12/4/2008 17:00 7
Weekly Team Meeting - Hand
Out Paper Parts 1 day 10/8/2008 8:00 10/8/2008 17:00
Second Milestone and Gaffney
Meeting 5 days 10/15/2008 8:00 10/20/2008 17:00 7
Weekly Team Meeting - Talk
About Review Session 1 day 10/15/2008 8:00 10/15/2008 17:00
Second Client Review Session 1 day 10/22/2008 8:00 10/22/2008 17:00 7,15
Weekly Team Meeting - Discuss
Visit 1 day 10/22/2008 8:00 10/22/2008 17:00
Visit to Azia 1 day 10/24/2008 8:00 10/24/2008 17:00 16
Weekly Team Meeting - Updates
On Paper 1 day 10/29/2008 8:00 10/29/2008 17:00
Weekly Team Meeting - Updates
On Paper 1 day 11/5/2008 8:00 11/5/2008 17:00
Weekly Team Meeting -
Milestone Work 1 day 11/12/2008 8:00 11/12/2008 17:00
Third Milestone and Gaffney
Meeting 4 days 11/16/2008 8:00 11/19/2008 17:00 15
Weekly Team Meeting - Updates
On Paper 3 days 11/19/2008 8:00 11/21/2008 17:00
Weekly Team Meeting - Updates
On Paper 2 days 11/26/2008 8:00 11/27/2008 17:00
Third and FinalClient Review
Session 1 day 12/1/2008 8:00 12/1/2008 17:00 18
Azia Picture Visit 1 day 12/3/2008 8:00 12/3/2008 17:00 19
Editor meeting - edit compile
and print 3 days 12/3/2008 8:00 12/5/2008 17:00
Final Paper printed and binded 1 day 12/5/2008 8:00 12/5/2008 17:00 20
Final PowerPoint 1 day 12/7/2008 8:00 12/7/2008 17:00 21
Presentation Walkthrough 1 day 12/7/2008 8:00 12/7/2008 17:00 22
Presentation 1 day 12/8/2008 8:00 12/8/2008 17:00 23
103

104

Bibliography
Azia Restaurant- A unique dining experience. Retrieved December 1, 2008, from Azia
Restuarant Web site: http://www.aziarestaurant.com/
Pham, Thom. Personal INTERVIEW. 30 September 2008.
Pham, Thom. Personal INTERVIEW. 24 October 2008.
105