1. An Analysis of Customer Focus Factors at Cheba
Hut: Key Results and Recommendations
Baker’s
Dozen
Maike Zhang, Troy Mielke, Alex Calatayud, Chris Weinberger, Tyler Hatem
2. Cheba hut is in a very
promising position as food
trends are shifting from fast
food to fast casual.
Furthermore, social
changes are making
marijuana more common
throughout the United
States. If managed correctly
Cheba Hut is in a great
position to capitalize on
these opportunities and
become a thriving business
Why Cheba Hut?
Restaurants deal with
customers on a daily basis.
Sales cannot be made
without customers.
Therefore, the customer
service is very important
and we would like to see
how Cheba Hut is doing
Why Customer Focus?
Project Rationale
C H E B A H U T
4. • Established in 1998 in Tempe,
Arizona
• Marijuana-themed restaurant
chain
• Competitively priced fast casual
food
• 15 stores in 6 states
• Official Website: chebahut.com
Cheba Hut Overview
Cheba Hut Chain
C H E B A H U T
$10M in annual
revenue
5. Organization Overview
• Opened January 26, 2013
• Serves the University/downtown area
• 3.5 Stars on Yelp
• 14 Employees (4 full-time, 10 part-time)
• Provides an extremely diverse and high quality
food/beverage selection
• Offer delivery but mainly focus on in store sale
Background
C H E B A H U T
6. P Handmade Sandwiches
Cheba Hut offers 14 varieties of
top shelf subs, 12 varieties of
mid-grade subs, 6 varieties of
salads and 9 varieties of sides
Products and Services
C H E B A H U T
Also include in-house bar
with many drink options
7. Offers superior product in terms of quality and variety compared with other fast
casual restaurants. Cheba Hut also is conveniently located and provides an
inviting atmosphere, allowing Cheba Hut to out perform the competition
StrengthsPositive Negative
Internal
External
Strengths
S
Weaknesses
W
Threats
T
Opportunities
O
Product is higher priced compared with others and wait time is especially long
Weaknesses
Continued legalization of marijuana will bring more customers to the marijuana
themed Cheba Hut
Opportunities
LOHAS movement will promote people to eat healthier and negatively impact
fast food restaurants. However, Cheba will be less effected due to great tasting
food they offer
Threats
SWOT Analysis
C H E B A H U T
8. Mission Statement
The Cheba Hut experience is simple. We combine homegrown food, with excellent service,
real people and a “relaxed” atmosphere. Escape the established
10. Core Values
C H E B A H U T
Commitment to high
quality food
Core Value #1
Create a symbol of
counter culture
Core Value #3
Foster a relaxed
environment
Core Value #2
+ + +
11. • College students who wants fast,
good tasting and convenient food
• People coming from late night
bars
• People who enjoy the “relaxed”
atmosphere
• Employees
• Management team
• Corporate executives
Key Customers Key Stakeholder
2015 2015
13. Apply Baldridge Performance
Excellence Model to Cheba Hut
Customer Focus Process Category
Customer Outcome Result Category
Provide
Recomme-
ndations to
Cheba Hut
and
increase its
sales and
customer
base
Project Objective
C H E B A H U T
14. + CHEBA HUT
Process Category
Overview
Recommendation
Result Category
Conclusion
Objective
15. Team 1
Team 2
Observation
Formulating
Questions Handout Surveys
Conduct In-person
Interview
Data Collection Process
C H E B A H U T
+
+
+
We began by conducting 1.5 weeks worth of observational learning. From this, we were able to formulate survey questions based on our observations. We then
split our group into 2 teams for data collection. Team 1 handed out surveys and team 2 conducted in person interviews based off of survey results.
Observation
Formulating
Questions
+
16. Tasks March 25th March 28th March 31th April 3rd April 6th April 9th April 12th
Observation
Formulating Survey
Hand Out Survey
In-person Interview
Data Collection Timeline
C H E B A H U T
The detailed timeline for the data collection process
17. Supporting Evidence
A. Managers work with suppliers for sampling new product offerings to find what appeals to their target market.
A. Cheba Hut is always experimenting with new product offerings.
B. From their new offerings, on a monthly bases, managers retroactively look at sales reports to see what worked and
what didn’t work to further promote popular items and to remove unpopular items.
B. During slow times in the day (1pm to 4pm), employees are encouraged to ask customers about their new products and
potentially offer free samples.
A. This approach engages customers and provides immediate customer feedback
B. When observing we noted that every customer that was given a sample was very appreciative and gave honest
answers.
Key Result #1
P r o c e s s C a t e g o r y – C u s t o m e r F o c u s : S t r e n g t h
Cheba Hut has a successful approach for finding and providing a product offering of foods and
beverages that meets and exceeds customers expectations
18. Supporting Evidence
A. Cheba Hut measures customer satisfaction solely through employees interactions with customers and lacks any
quantitative data or any data with customer anonymity
B. Customers often give positive answers to employees though this may not reflect how they actually feel.
A. Upon observing, we noticed that customers were reluctant to give negative feedback when talking face to face with
the employees that made their food. However, when we gave them written surveys their answers became far more
negative
B. We only observed one customer give negative feedback of the 30 customers that were asked “How did you enjoy
your Cheba Hut experience?”
Key Result #2
P r o c e s s C a t e g o r y – C u s t o m e r F o c u s : O F I
Cheba Hut lacks an effective approach for measuring customer satisfaction
19. Supporting Evidence
A. Cheba Hut relies on its high traffic location to appeal to customers rather than doing formal promotions.
B. Management views promotion as costly and unnecessary
A. “Cheba Hut is not a restaurant that most people seek out and make the attempt to drive to our store. Most of our
customers don’t even have cars so we rely on our location and word of mouth promotion to bring customers into our
store.” – Kyle (Head Manager)
Key Result #3
P r o c e s s C a t e g o r y – C u s t o m e r F o c u s : O F I
Cheba Hut lacks a systematic approach for growing their customer base
20. Supporting Evidence
A. Employees receive no training on how to engage with customers
B. To non frequent customers, Cheba Hut’s menu can be confusing
A. Employees rarely explain menu items or make recommendations
B. Customers are too frequently left confused with the meal they purchased
C. Ordering confusion causes long lines and creates extra work for employees who have to remake orders
D. In just a two hour period, we observed 4 orders that needed to be remade
Key Result #4
P r o c e s s C a t e g o r y – C u s t o m e r F o c u s : O F I
Cheba Hut lacks a formal communication process for taking orders, specifically for first
time customers
21. + CHEBA HUT
Process Category
Result Category
Recommendation
Conclusion
Overview
Objective
22. 75%
68%
75%
71%
93%
Overall 1st Time Limited Occasional Frequent
Target Level for Satisfaction of
Product Variety
Repeat customers show a positive level
of Satisfaction with Cheba Hut’s
product variety
Key Result #1
R e s u l t C a t e g o r y - C u s t o m e r O u t c o m e : S t r e n g t h
70%
Satisfaction of Product Variety
23. 4
50%
5
33%
3
17%
2
0%
1 & 2
0%
Recommend to
Friends?
Key Result #2
Targeted Net Promoter Score
67% Net promoter score indicated a
positive level. Frequent customers are
likely to recommend to friends
60%
Frequent Customers
*5: Very Likely; 1: Unlikely
R e s u l t C a t e g o r y - C u s t o m e r O u t c o m e : S t r e n g t h
24. 2
59%1
17%
3
8%
4
8%
5
8%
Recommend to
Friends?
Key Result #3
Targeted Net Promoter Score
60%
1st Time Customers
*5: Very Likely; 1: Unlikely
-68% Net promoter score indicated
negative level. 1st time customers are
unlikely to recommend to friends
R e s u l t C a t e g o r y - C u s t o m e r O u t c o m e : O F I
25. 54%
42%
54% 55%
76%
Overall 1st Time Limited Occasional Frequent
Key Result #4
Targeted Wait Time Satisfaction
Cheba Hut showed a negative level of wait time
satisfaction. Our observation indicated 7min
prep time vs 2min prep time at Jimmy Johns
80%
Wait Time Satisfaction
R e s u l t C a t e g o r y - C u s t o m e r O u t c o m e : O F I
26. 53%
17%
50%
69%
100%
Overall 1st Time Limited Occasional Frequent
Target Satisfaction with Staff Helpfulness
The overall rated helpfulness has a
negative level of 53% which is far below
the target level
Key Result #5
70%
Satisfaction of Staff Helpfulness
R e s u l t C a t e g o r y - C u s t o m e r O u t c o m e : O F I
27. Yes
55%
No
45% Heard of
Cheba Hut?
Key Result #6
Targeted Restaurant Awareness
80% Negative level of knowledge of Cheba
Hut demonstrates low customer
awareness
R e s u l t C a t e g o r y - C u s t o m e r O u t c o m e : O F I
29. A. Key Result #2 OFI: Cheba Hut lacks an effective approach for measuring customer satisfaction
Recommendation: Develop a written survey to gather unbiased quantifiable data
Supporting Action Steps:
A. Include link of the survey on the receipts
B. Include promotional code after filling out the survey for discounted purchases
Recommendation: Hold monthly meetings to discuss customer feedbacks
A. Supporting Action Steps:
A. These meetings should address the Hedgehog Concepts of what is working well and also confront the
brutal facts to find areas that needs improvement.
B. Key Result #3 OFI: Cheba Hut lacks a systematic approach for growing their customer base.
Recommendation: Experiment with different promotional tools to find out what works best for your customer base
Supporting Action Steps
A. Look at what competitors are doing as far as promotional tools and expand to social media sites that are
popular with their target market such as (Twitter, Facebook, Instagram, Snap Chat and Yik Yak)
B. To decide on best promotional campaigns, use the multi-voting technique to select strategies that will be
best suited for Cheba Hut’s target market.
Key Recommendations
P r o c e s s C a t e g o r y – C u s t o m e r F o c u s
30. A. Key Result #4: Cheba Hut lacks a formal communication process for taking orders, specifically for first time customers.
Recommendation: Develop a communication script for customer interaction.
Supporting Action Steps
A. Break down the script for greeting, taking order, and closing
B. Implement consistency to ensure every customer receives equal treatment
Recommendation: Implement positive reinforcement based on fixed interval reward system
Supporting Action Steps
A. Give employees recognition for top quality customer service
B. Give a fixed benefit to high performing employees on a monthly basis
Recommendation: Establish a job level control mechanism
Supporting Action Steps
A. Establish a standard for duties, tasks, responsibilities, rules, policies and procedure
B. Employees must hold each other accountable for meeting these requirements (100% responsibility)
C. Management must keep consistent expectation when dealing with customers
Key Recommendations
P r o c e s s C a t e g o r y – C u s t o m e r F o c u s
31. A. Key Result #3 OFI: First time customer has a negative level regarding recommending Cheba Hut to a friend
Recommendation: Set a SMART Goal to increase net promoter score
Supporting Action Steps:
A. Formulate a clear-cut goal that states what, where and how you will achieve an increased Net Promoter
score.
B. Consistently measure customer’s willingness to recommend, in quantitative terms
C. Delegate tasks to employees to ensure the continuation of your Net Promoter score goal
D. Set a challenging but realistic Net Promoter score level
E. Appropriate enough time to reach this goal
B. Key Result #4 OFI: Cheba Hut showed a negative level of wait time satisfaction.
Recommendation: Hear out the voice of the customer to ensure orders are made correctly the first time and eliminate
the extra time required to resolve order errors
Supporting Action Steps
A. Use the active listening technique to ensure the needs of the customer are met exceptionally
B. Employees should always ask for clarification if they are unsure of what the customer wants out of them
Key Recommendations
R e s u l t C a t e g o r y – C u s t o m e r O u t c o m e s
32. A. Key Result #5 OFI: The overall helpfulness of the staff has a negative level in terms of satisfactory
Recommendation: Develop a communication technique based on the FISH Philosophy.
Supporting Action Steps
A. Choose the right attitude
B. Have fun and enjoy your work
C. Make the customer’s day
D. Make your presence known
B. Key Result #6 OFI: Negative level of knowledge of Cheba Hut demonstrates low customer awareness
Recommendation: Expand attention to areas of Madison where they don’t have a customer base and increase brand
recognition
Supporting Action Steps
A. Uses Cheba Hut’s unique logo as a symbol and promote it throughout Madison
B. Hand out laptop stickers with the Cheba Hut logo rather than the random designs on the stickers currently
being handed out.
C. Ensure that all delivery vehicles have the Cheba Hut logo on them
D. Have both in store and delivery employees wear uniforms with the Cheba Hut logo
Key Recommendations
R e s u l t C a t e g o r y – C u s t o m e r O u t c o m e s
34. Key Results Strength/OFI Key Recommendations
Cheba Hut has a successful approach for finding
and providing a product offering of foods and
beverages that meets and exceeds customers
expectations
Strength
Cheba Hut lacks an effective approach for
measuring customer satisfaction
OFI
1. Develop a written survey to gather unbiased
quantifiable data
2. Hold monthly meetings to discuss customer
feedbacks
Cheba Hut lacks a systematic approach for
growing their customer base
OFI
1. Experiment with different promotional tools to find
out what works best for your customer base
Cheba Hut lacks a formal communication process
for taking orders, specifically for first time
customers
OFI
1. Develop a communication script for customer
interaction
2. Implement positive reinforcement based on fixed
interval reward system
3. Establish a job level control mechanism
Summary Table: Process Category
C H E B A H U T
35. Key Results Strength/OFI Key Recommendations
Repeat customer show a positive level of
Satisfaction with Cheba Hut’s product variety
Strength
Net promoter score indicated a positive level in
which frequent customers are likely to
recommend to friends
Strength
First time customer have a negative level
regarding recommending Cheba Hut to a friend
OFI 1. Set a SMART Goal to increase net promoter score
Cheba Hut showed a negative level of wait time
satisfaction
OFI
1. Hear out the voice of the customer to ensure orders
are made correctly the first time and eliminate the
extra time required to resolve order errors
The overall helpfulness of the staff has a negative
level in terms of satisfactory
OFI 1. Develop a communication technique based on the
FISH Philosophy
Negative level of knowledge of Cheba Hut
demonstrates low customer awareness
OFI
1. Expand attention to areas of Madison where they
don’t have a customer base and increase brand
recognition
Summary Table: Result Category
C H E B A H U T
37. End Notes
C H E B A H U T
1 Process Category Evaluation Criteria, Baldrige Performance Excellence Model, Strategic Management-Performance Excellence
Topic, Talking Textbook Webinar
2 Results Category Evaluation Criteria, Baldrige Performance Excellence Model, Strategic Management-Performance Excellence
Topic, Talking Textbook Webinar
3 SMART Goals, Goal Setting Theory, Work Motivation and Performance Management Topic, Talking Textbook Webinar
4 Positive Reinforcement, Strategies for Desired Behaviours, Work Motivation and Performance Management Topic, Talking
Textbook Webinar
5 Multi-Voting Technique, Making a Team Decision, Team Problem Solving and Decision Making Topic in Team Development
Lab, Team Building Exercise #4
6 Capture the Message of the Sender, The Active Listening Process, Communication Topic, Talking Textbook Webinar
7 Symbols, Dimensions of Organizational Culture, Organizational Culture Topic, Talking Textbook Webinar
8 Fish Philosophy Elements, Contemporary Theories of Motivation-Fish Philosophy, Work Motivation and Performance
Management Topic, Talking Textbook Webinar
9 Job Level Control Mechanism, Fundamental Elements of Organizational Design, Organizational Design Topic, Talk Textbook
Webinar
