Managing Restaurant Congestion Harvard Case Solution & Analysis

Managing Restaurant Congestion Case Study Solution

Alternative solutions

After analyzing all the situations with the help of stated facts and figures, following alternatives solution are suggested for Restaurant Kazuto cope up with this grim situation:

Alternative solution #1 (Patio Seating Arrangement)

The First alternative solution suggests that Mr. akutsu should expand their business because there are number of potential customers averting because of the unavailable space and long waiting time. This alternative suggests patio seating plans for the restaurant. Patio seating plan suggest a seating place utilizing small space along with serving more customers. The seating plan utilize pavement area for providing fresh environment to the customers along with providing pleasant décor for the restaurant. It is further suggested that Mr. Akutsu must increases their working days because its competitors providing their services forfive working days. They could provide their services in Saturday’s and Wednesday’s for increasing their working days, this will help in increasing more revenues and operate in this industry by utilizing their full capacity. The increased working days will be helpful for satisfying summer’s potential customers. Kazu should include one more table with 3 seats in its existing serving area to make the restaurant capable of serving 30 customers at a time because the restaurant has the capacity for it.(AE Sobaih, P Coleman, C Ritchie, 2008)

Advantages

This alternative will require minimum investment to increase their serving area along with providing pleasant atmosphere for the customers. This will be help for meeting the coming summer’s customer’s requirements and satisfying more customers. The current wait time and the volume of missed customers will be minimized by expanding seating plan by using patio seating plan,this will be cost effective and increase their business.

Disadvantages

This alternative will require more servers with specialized skills, so that less time will be used for serving one customer. Skilled and trained servers will add cost but will provide with efficient results. Number of increased working days will require more material and require more efforts for generating increased revenues.

Alternative solution #2 (Marketing Approach)

The second alternative solution suggests that the company should formulate a marketing strategy which should illustrate a complete marketing plan along with adjustment in the current pricing strategy. This strategy suggests that companies should compete with its existing company by charging same prices as their competitors. The mass marketing will help the company to increase its potential customers by building its brand image. But this will also require huge investment and will affect company’s differentiation policy. Currently, company is working on low cost strategy and charge from its customers accordingly. This alternative will badly effect company’s low-cost strategy and resulting in dissatisfying its loyal customers.

Advantages

Mass marketing will help the company to increase its potential customers by building strong brand image. This will help in building brand image and introducing their advanced menu to new customers. Mass marketing is a good approach to increase number of customers.There are number of potential customers diverting because of minimum space and minimum number of servers, this alternative will compensate this loss by charging high prices from minimum customers.

Disadvantages

This alternative will require huge investment and require targeting more customers. This will also affect their target market. Currently, they are providing their services to middle class by charging low prices because of their low-cost strategy. This alternative will severely effect company’s low-cost strategy and resulting in dissatisfying its loyal customers.

Alternative solution # 3 (Trained Staff with Advanced Technology)

The third alternative solution is that the company should hire more servers and helpers and provide them with complete training. The old equipment and process must be replaced by new and advanced technology which should increase the efficiency of the process and cut down the long waiting time. Customers are annoyed with the long waiting time and diverted to other restaurants, this is a critical situation which should be handled aggressively. The trained staff will help the company to generate more revenues by serving more customers in a limited time period. This will ultimately save the queuing length and waiting time period and eventually help to increase number of loyal customers. For saving their waiting and order placing time, Mr. Akutsu could use beeper, an advanced technology, it collects orders automatically without wasting time and on the other hand, it will also save labor cost by collecting orders quickly.

Advantages

This alternative provides with many advantages as well as some disadvantages. The main purpose is to cut down the waiting time for the increasing number of potential customers. The trained staff will help in serving the customers quickly and the beeper technology also serve the same purpose. This alternative will increase its number of operations and will help in generating more revenues.

Disadvantages

Hiring more customers and purchasing advance technology will increase the serving cost. This will ultimately affect the restaurant’s low-cost strategy. The increased prices will also affect its loyal customer and provide chance to its competitors for attracting more customers.

Recommendations

After giving due diligence to the whole situation and critically analyzing the proposed alternative solutions it is recommended to Mr. Kazu that he should arrange a patio seating arrangement along the restaurant’s pavement during the tourism season along with make some adjustments in its operational activities because it will be cost effective and increase the business. Kazu should include one more table with 3 seats in its serving area to make the restaurant capable of serving 30 customers at a time because the restaurant has the capacity for it. Utilize full capacity by making its operations effective and efficient.Human resources should be utilizing effectively, The free helper should assign the duty of a server during the lunch time and all the servers should make their services efficient and ensure that no table or stool or seating area remain vacant, it should be filled quickly As long as customers are waiting in line.

Implementation

All the above suggested solution needs resources and time management. Following is the timeline for implementing the solution successfully…………

 

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