1. Opening a restaurant
by using the six steps in Decision
Making
Tutorial Group No. : TE1 Week : 7
Members :
Lam Kwok Tung Kenny 52610985
Lam Chi Wing Frankie 52644718
1
Lai Chung Yam Thomas 52569984
3. Situation
• Open a restaurant in a centrally located shopping
center that already has many restaurants that
provide different kinds of food at all price
• Have the resources to open any type of
restaurant.
• Decide which type of restaurant to open
3
6. Step 1 - Recognize the need for a decision
Decision : To decide which type is most likely to
succeed
• There are all kinds of restaurant that provide food at
all price of range
• Resources are enough to open any type of restaurant
• A restaurant will be opened in a shopping center
As a result, we need to:
Survive and succeed under fierce competition
Be unique, different
Choose suitable type to open
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7. Step 1 - Recognize the need for a decision
Shopping center chosen : Festival Walk
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8. Step 2 - Generate alternatives
• Develop feasible alternative courses of action
• Otherwise bad decision will be made
• More new ideas
• Brainstorming
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9. Step 2 - Generate alternatives
• Alternative 1 - Ocean buffet
• Alternative 2 - Pet Restaurant
• Alternative 3 - Rainforest Food court
• Alternative 4 - Green Café
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10. Alternative 1 - Ocean buffet
• A big roofed aquarium
• Beautiful and rare aquatic animals
coral reef and fish
• Luxury table, chair and decorations
• Western buffet
wines, steak
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11. Alternative 2 – Pet Restaurant
• Lovely decoration and pet toys
• Pet owners can have meal with their pets
• Provide a platform for pet owners to share their
experience and happiness about raising pets
• Pets can play together
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13. Alternative 3 – Rainforest Food court
• With a vivid rainforest decoration
e.g. aquarium, trees, animals
• Change lighting and sound effect together with some
decoration regularly
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15. Alternative 4 - Green café
• Decoration with natural landscape printing or photo
• Provide food and drink made by organic fruit or
vegetable
• Excogitate new dishes to provide customer feeling of
freshness
• Use fixture with natural or recycle materiel
• Donate some profits to
green organization
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16. Step 3 - Assess alternatives
Criteria
1. Legality : not violate any laws or government regulations
2. Ethicalness : ethical and will not unnecessarily harm any
stakeholder group
3. Economic feasibility : have the best net financial payoff
4. Practicality : has the required abilities and resources; the
alternative will not threaten the attainment of other goals
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17. Assessment of Ocean Buffet
Pros:
• An amazing roofed aquarium in a shopping center
(Practicality)
• Huge range and wide type of food
Cons:
• the maintenance cost of the aquarium( Economic
feasibility)
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18. Assessment of Pet Restaurant
Pros:
• Pet owners can have meal with their pets
• Provide a platform for pet owners to share their experience
and happiness about raising pets
Cons:
• Violate Food Business Regulation - Cap.132X(Legality)
Example:：
"Kat House", in Mikiki mall in San Po Kong fail to obtain a restaurant 18
license.
19. Assessment of Pet Restaurant
Cons:
• Others customers in the mall may be affected.
(Ethicalness)
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20. Assessment of Rainforest Food court
Pros:
• Wide range of food provided
• Interesting theme for Hong Kong people
Cons:
• Very high decoration and maintenance cost. (Economic
feasibility)
Fail Example:
Rainforest Café in Festival Walk
Opened in 1998 and closed in 2002
Decoration cost > 10million HKD 20
21. Assessment of Green Café
Pros:
• Few vegetarian restaurant in the market (Practicality)
• Starbuck style liked restaurant is famous in Hong Kong
(Practicality)
• Raising awareness of health and environment
(Ethicalness)
• Can use simply decoration (Economic feasibility)
Cons:
• Meat eater is still dominate in Hong Kong
• Dishes not suitable to price too much (Economic 21
feasibility)
22. Assessment of Green Café
• The public awareness of environmental protection has
been raising.
e.g.
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23. Assessment of Green Café
• The sale of organic product is increasing.
e.g. Hong Kong Organic Resource Center conducted a survey
about organic food in March 2012.
More people are willing to buy organic food.
The organic food market is potential.
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24. Step 4 - Choose among alternatives
• Rank the alternatives
• Make decision
• Group thinking
Pattern of faulty and biased decision occurred
Strive for agreement
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25. Step 4 - Choose among alternatives
1. Ocean 2. Pet 3. Rainforest 4. Green café
buffet Restaurant food court
1. Legality X
2. Ethicalness X
3. Economic XX XX
feasibility
4. Practicality X XX
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Rankings of choices:
Green café > Pet restaurant > Ocean buffet > Rainforest food court
26. Step 5 - Implement the chosen
alternative
• Implement chosen alternative
• Subsequent and related decision
• Ensure that follow-up decisions are successful
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27. Step 5 - Implement the chosen
alternative
Subsequent and related decisions must be made:
1. Signing contracts with organic food suppliers
2. Recruit chefs, waiters and waitress, cleaners,
cashier
3. Find decoration company
4. Rent a place and so on
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28. Step 5 - Implement the chosen
alternative
• Top manager may not have enough time to finish all of the
missions by himself or herself.
• Works must be assigned the to others. (increase the efficiency)
• Key of assigning middle managers
• Managers need to have sufficient resources to achieve the
goal.
• They should accountable for their performance.
• When success they should be rewarded 28
• If fail they should be responsible for it.
29. Step 6- Learn from feedback
• Evaluate the results and learn from experience
• Find out why expected results were not met
• Establish guidelines that will aid decision making in the
future
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31. Feedback1
Problem:
The amount of food cannot fulfill some customers
Solution:
Let customers to decide the amount of food.
To meet the need of customers and will not waste food
Promote it as a habit
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32. Feedback2
Problem:
The serving staff has not received manner training
Solution:
• Remind the staff
• Set up rules for staff
Rule 1: Say welcome with smile when customers walk in
Rule 2: Gently tidy up dinning tables
Rule 3: Use positive statement to enhance customer feeling of 32
making good deed
33. Summary
• Six steps in Decision Making
Recognize the need
Enough alternative
The four criteria in step 3 – assessing alternatives
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34. References
Book
Management, 2nd ed. (2012), The McGraw-Hill Companies, Inc.
Government
http://www.info.gov.hk/gia/general/201201/18/P201201180270.htm
News
http://www.eyo-zh.com/cgi-bin/view.cgi?forum=9&topic=60
http://hkmanager.hkma.org.hk/article/%E3%80%8C%E7%84%A1%E9%82%8A%E7%84%
A1%E7%95%8CE7%94%9F%E6%B4%BB%E4%B9%8B%E6%85%8B%E3%80%8D%E3%80%
8C%E5%8F%88%E4%B8%80%E5%9F%8E%E3%80%8D%E5%B8%82%E5%A0%B4%E7%AD
%96%E7%95%A5%E4%B8%BB%E9%A1%8C.html?request_locale=zh_TW
Others
http://yettatop.pixnet.net/blog/post/3393675-
%E9%96%8B%E5%BA%97%E7%A7%98%E7%AC%88%E3%80%8B%E4%B8%BB%E9%A1%
8C%E9%A4%90%E5%BB%B3-%E8%B6%A3%E5%91%B3%E7%B6%93%E7%87%9F
http://www.openrice.com/restaurant/hk_food/theme.htm 34
35. Q&A Section
1. Which steps is the most important and
difficult?
2. In the four criteria in step 3, which one do you
think is the most crucial?
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