Service Management Case Study on Mongolian Grill,Jonah Guo, Queen's MBA

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This is a class presentation prepared for a case study on a Mongolian Grill restaurant in North America. All the content is only presented for educational use only. Photos are from Google Image Search.

The team suggested to optimize the restaurant’s design to increase profitability,reduce waiting time
while maintaining the unique customer experience

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Service Management Case Study on Mongolian Grill,Jonah Guo, Queen's MBA

  1. 1. Feb. 29, 2012Amol
  2. 2. Executive Summary Existing restaurant in Location A Open a new restaurant in Location B Optimize the restaurant’s design toI. increase profitabilityII. reduce waiting timeIII. maintain the unique customer experience
  3. 3. Background: Heyday of Mongolian EmpireIt existed during the 13th and 14th centuries, and was the largest contiguous land empire in human history
  4. 4. Mongolian Tent
  5. 5. Grill on the shield On the way of their journey, Mongolian warriors sometimes grilled food on the shield to save time on their journey all the way to the Europe. Ancient Mongolian believed that food should not be cooked directly on fire.
  6. 6. Beijing Hot Pot Beijing Hot Pot is built on the same idea.
  7. 7. Modern Mongolian Grill Inventedby Mongolians in Taiwan in ’70s Both hot pot and Mongolian Grill resemble the structure of Mongolian tent.
  8. 8. Modern Mongolian Grill ExperienceYoutube:http://www.youtube.com/watch? v=4PXSKZnakng
  9. 9. Mongolian Grill Service Blueprint 3 times/personevidencePhysical Restaurant Dé & cor Menu & food Cooking Presentati Return to Billing Parking Ambience selection grill on & taste TableCustomer Arrive at Check Select meat, Give to Receive Receive Ask bill, Mongolian availability vegetables & cooking grilled drinks, pay & leave Grill & seating Sauces/spices station food bread & rice Line of InteractionContact employees Greet and Prepare Serve drinks, Process bill Visible drink orders food bread/rice(Invisible Prepare Stock up Maintain drinks food & Cooking sauce bar grill Line of internal interaction processes Support Prepare Prepare Payment food, sauces rice & system & spices bread
  10. 10. Key Issues in the CaseCapacity constraintHigh throughput timeRetaining unique customer experience
  11. 11. Alternatives: 1. Current Design
  12. 12. 2. Implement proposed design changes
  13. 13. 3. Optimize the proposed design
  14. 14. Decision Criteria & Analysis
  15. 15. Time Analysis
  16. 16. Cost AnalysisAdditional costFixed cost$3200 for setting up additional food bar$2100 for setting up additional oil and spice bar$600 for additional counter space for cooking grillTotal fixed cost = $5900Variable cost (per week)Additional kitchen employee for an 8 hour shift on Thursday, Friday and SaturdayAdditional cook in the busy period ( on Thursday, Friday and Saturday)= 8 X 8 X3 + 5 X 12 X 3= 192 + 180 = $ 372Contribution Margin = Revenue – Variable cost = 1425 – 372 = $ 1053Break even = Fixed cost / contribution Margin= 5900 / 1053 = 5.6 weeks = 6 weeks approximately
  17. 17. Recommendations
  18. 18. Risk & Mitigation Potential bottleneck at grill? Hire more chefs Build another grill Reduced kitchen impact Inventory ? Just in-time inventory
  19. 19. Looking ForwardAttract customers onoff-peak hours
  20. 20. Other Options
  21. 21. We got this circle-by-circle idea from the Heaven Temple in Beijing,which was once the capital of Mongolian Empire
  22. 22. Another easy-to-implement idea,yet may cause confusion for consumersCrossing Point
  23. 23. Thank You for listening! Jonah Guo Queen’s MBA 2012 Canada www.Jonahguo.com jonahguo@gmail.com

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