Hard rock cafe

1. PRESENTATION
ON

2. INTRODUCTION
 First opened in 1971
 Now – 110 restaurants in over 40 countries
 Creates value in the form of good food and
entertainment
 3,500+ custom meals per day in Orlando.
 One of the largest restaurants in the world.

3.  Somewhat akin to mass customization in manufacturing.
 Provides not only meal but also a unique visual and
sound experience.
 40 US locations, dozen in Europe and remainder
scattered throughout the world.
The hard rock cafe is in the top ten of the
world brands recognition.

4. MISSION
 “Provide not only a custom meal from the menu, but
a dining event that includes a unique visual and
sound experience not duplicated anywhere in the
world”.

5. ISSUE 1:
10 DECISIONS OF OPERATIONS MANAGEMENT IS APPLIED AT
HARD ROCK CAFE.
 The design of goods and services
 The strategy of Hard Rock in the last years has been led
by the “differentiation”.
 Quality management
 It has made unique its offer, its product with a courteous
service.
 Process and capacity design
 Hard Rock works to create products in an efficient
manner, analyzing them for cost, quality, and labor
requirements.
 Location selection
 Takes in consideration many key factors from a global
view (Political Risk, Currency Risk, Social Norms, Brand
Fit, Social Cost, and Business Practices).

6.  Layout strategy
 Decides whether to remodel an Existing Site or to
purchase a land and construct a new site.
 Human resources and job design
 All the staff members must be passionate about music,
love to serve, can tell a story, and convey the experience
to visitors.
 Supply chain management
 Qualified suppliers to supply the right amount of good
ingredients on time, to ensure providing fresh, quality
meals.

7.  Inventory management
 They maintain $40 million of memorabilia with all
sorts of special care, tracking, and storage
issues.
 Scheduling
 They take a look at trend for their trade for the
past couple weeks and then come up with sales
forecast.
 Maintenance
 Provides a reliable kitchen with hot food served
hot and cold food served cold.

8. ISSUE 2:
HOW CAN THE PRODUCTIVITY OF THE KITCHEN STAFF AND WAIT
STAFF AT HARD ROCK BE DETERMINED ?
 Productivity of kitchen staff is the output (number of
meals) over the input (hours worked).
 The calculation is how many meals prepared over how
many hours spent preparing them.

9.  Productivity of wait staff is the output (number of served
customers) over the input (hours worked).
 The calculation is how many customers served over how
many working hours the wait staff spent serving them.

10. HARD ROCK CAFE’S STRATEGIES
Hard Rock Cafe focus on globalization, because
globalization means:
 Reduce costs
 Improve supply chain
 Provide better goods and services
 Attract new markets
 Learn to improve operations
 Attract and retain global talent

11. STRATEGIES (CONTD.)
 Company had raised Competitive Advantage through the
differentiation strategy.
 The HARD ROCK Cafe spends millions of dollars each
year to purchase new music souvenirs comes from
legends of rock– mainly started from Eric Clapton.

12. STRATEGIES (CONTD.)
THE HARD ROCK’s global operation management
strategy successfully combines:
• Music
• International locations
• Globally branding merchandise
• The World Wide Web attention to each quest
experience

13. STRATEGIES (CONTD.)
The HARD ROCK Cafe to create network of
restaurants takes into account some
considerations, like:
 Political risk
 Currency risk
 Social norms
 Brand fit
 Social costs
 Business practices