Oceancove Harvard Case Solution & Analysis

Oceancove Case Study Solution

Goal and Target

The goal of the owners and management of the Ocean Cove is to increase its size by adding 40 seats in each restaurant in order to cater more customers and to earn higher revenues. If the owners of the restaurants would increase the size of the restaurants, the customers and the process time would also increase based on the current capacities of the restaurants. The average time that the customer spends at restaurant is also assumed to increase. By adding 40 seats in each restaurants; the size of each restaurant would increase by 33%.  With an increase in size, the average lunch time spent by the customers would also increase from 40 to 60 minutes, and the average lunch time spent by the customers would increase from 83 to 110 minutes respectively. The reason behind the increase in customers’ waiting time could be the delay in the process and serving time required for appetizers, main course and desserts at the restaurants. Once the size of the restaurants increases by 40 seats, the process time and the customer time are most likely to be increased from 25 minutes and 60 minutes respectively. Calculation is provided in the appendix-2.

Cause Analysis

The underlying issues with the current operations is that the restaurant has a limited operational capacity and staff to cater its customers. The restaurant has a limited capacity to cater the customer due to which the customers have to wait for a quite long time to reach the dining area. Due to the limited staff and equipment; the time to serve each customer increases, which ultimately increase the time that each customer spends at restaurants. The staff at each restaurant is composed of six waiters and 6 service support staff. The service support staff and the waiters work in a pair, which means that each pair is responsible to serve  5 tables of four people/table. However, the staff is responsible to clean the tables and the waiters are responsible to serve the menu to the customers. Insufficient staff is considered to be one of the major deficiencies of the restaurant, which is ultimately contributing to the increase in the serving time of menu to the customers.

Proposed Improvement

The proposed improvements and the suggested alternatives are as follows:

Proper Training:

One of the proposed improvement or suggested alternative is that the restaurants should provide proper training to its waiters and other staff which includes, chefs and other service staff in order to reduce the time to serve each customer. Proper training would help the staff and waiters of the restaurant to perform different activities more efficiently, such as handling food, assembly time, grilling, clearing table and taking orders from customers. This would also improve the performance of the restaurants and reduces the time consumed to serve each customer.

Increased The Number Of Staff And Equipment:

Another suggested improvement and the alternative is to increase the number of equipment and the staff at each restaurant in order to reduce the time to perform different activities, and the time to cater each customer. The each pair of staff and the waiter is responsible to serve 5 tables, with each table having four people. This is the reason that during the peak hours the customer have to wait for a long time before they get the table in the dining halls. Increase in staff and the equipment would be beneficial in such a way that each person would be responsible to cater few people, which improves the quality of services and make the staff more efficient in catering the customers with in a short period of time even serve more customers during peak hours.

Offer More Variety By Maintaining The Quality:

After taking in consideration the growing demand of the sea food; the restaurants are recommended to offer more variety without compromising on quality and services,in order to increase their consumer base and earn better profit margins. The target market of each restaurant is only middle class.However, by offering a wide variety in their menus, the restaurants can avail the opportunity of increasing their customer base and cater more classes. Additionally, the restaurants may charge higher prices for additional variety of food being served at each restaurant

Appendices

Appendix-1:

Average Lead time with Current Capacity
Average spend time on appetizer10
Average spend time on main course25
Average spend time on dessert10
Appetizer serving time5
main course serving time7
Dessert serving time5
cooking time4
total time to serve and spend in mints66
total time to serve and spend in hours1.1
number of items in process20
average lead time18.2

Appendix-2:

With Additional Size
average lead time18.2
customer time45
current seats120
new seats160
current lunch time spent45
current average dinner time spent*82.5
Change by adding new seats33%
average new lunch time spent60
average new dinner time spent110
New total process time24
Total new customer time60

 

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