Posted at 11.23.2018
Hard Rock and roll Cafe is a success story in procedure management. From its very first London pub in 1971, after 39 many years of existence Hard Rock and roll cafe continued extending and succeeding in a number of countries. This newspaper will discuss how the 10 decisions of the Procedure management were made on Hard Rock Cafe as well as procedure management problems and opportunities confronting Hard Rock Cafe when contemplating an development of its business in Hanoi.
With the quest "to spread out the heart of rock and roll 'n roll by delivering creating authentic activities that rock", Hard Rock cafe has gained continued success since it was founded in June 14, 1971 when the rock and roll music was explosive in Britain. Hard Rock and roll Cafe has uniqueness and moreover they have launched a great strategy in operation management. Hard Rock cafe strategy is "to provide not only a custom meals from the menu, but a dining event which includes a unique visual and music not duplicated all over the world. " (1) That strategy has helped Hard rock cafe grow from its first Cafe to 129 globally locations. Bellow is the discussion on some out of 10 decisions of opreration management run on Hard Rock and roll Cafe.
Taking the success of the Hard Rock and roll Cafe under consideration means considering its service quality and product design. The Cafe offers a variety of services from cafes, live music, Rock and roll concerts to hotels and casinos. They provide customer by "modifying the menu from traditional North american - burgers and chicken breast wings- to add higher-end items such as products veal chops and lobster tail" ( P. 56). And undoubtedly, its quality must be the top charts. They always usually change their menu predicated on the repeated customer study and localized food flavor. "Surveys are done on a regular basis to judge quality of food and service at the cafe. Ratings are rated on a 1 to 7 scale. And if the rating is not a 7, the meals or service is failing" (Jay & Barry, n. d, P. 56). Hard Rock and roll not simply offers meals and drink, it provides a distinctive different experience in each location. " Encounters are not exclusive about entertainment; company level an experience every time they employ customers in a personal and memorable way. (Harvard Business Review, Welcome to the experience market, B, Joseph Pine II& Jame H. Gilmore, 1998) Surely, the main element has driven Hard Rock and roll Cafe to success is to build a standard of quality and keep its product and service meet the standard.
One factor that brings success to Hard Rock and roll Cafe is Individual source of information strategy.
Based on their specific services, from the recruitment Hard Rock and roll Cafe looks for people who are ardent with music, prefer to serve people and also have ability in order to story. "Hard Rock and roll builds on the employing criterion of smart, good attitude, self-motivated people with an employee monthly bill of rights and substantial staff power". These folks will surely encourage customer and make sure they are happy. Hard Rock and roll Cafe also created a great working environment with individuals who have the same interest but different personality. Besides, training plan is also a very good strategy at Hard Rock. "The company's training is very specific, with job-oriented interactive CDs covering kitchen, retail, and front side - of - the house service. " Through working out, employees improve themselves both in person and expertly. Staffs are highly determined because they can see their opportunities in Hard Rock even they are really from a minimal level as 60% of the professionals here are promoted from in your free time personnel. Such strategies have reveaved that the Cafe really cares about their workers and their employees do not only come for the money but also to acquire job satisfaction.
"Because location is such a significant cost and revenue drivers, location often has the power to make (or respite) a company's business strategy" (Jay & Barry, n. d, P. 364) therefore, Hard Rock Cafe has been spending much time and great work to investigate location every time they want to start a fresh Cafe. Concentrating on tourists and people who love music therefore demographics, visitor market, transport, restaurants/night golf clubs and political risk are emphasized factors for researching to be sure that Hard Rock Cafe is situated in a convenient place because of their customers. The examination also helps them have a long-term investment in each Hard Rock and roll cafe. Every opened up cafe is a result of an extremely careful decision after looking into the target market segments, the correct places and considering the future success in an extended time frame. Therefore, location contributes a crucial role in growing Hard Rock Cafe acceptance to world-wide nowadays.
The design is also another important decision that management has to make. Your kitchen is established to be not just only a normal kitchen but also a comfortable working space for all the staff. The kitchen flows are designed in order to make certain that the principle, waiters and waitresses have sufficient space to do their work. The club and restaurant are made to bring the best income for Hard Rock and roll Cafe. Installing lighting, sound, screens, music and circulation paths is in order to reward memorabilia and for that reason, customers are convinced to buy souvenirs by natural means. Actually, the retail shops produce about half the company's revenue and they're always viewed at eye-catching areas such as within the restaurant space, flow and work channels.
It's obviously that arranging is one of the most crucial decisions at Hard Rock Cafe. With Mr. Ken Hoffman, Hard Rock's General manager takes arranging very serious. There are a few factors that affect sales that Ken Hoffman cares when he makes timetable. The number of occupied rooms in nearby hotels is important because not all guests will have evening meal in the Hotels. They'll look for dinning locations and of course Hard Rock cafe will be their vacation spot because than it uniqueness and well-known. Another factor that they consider is how many events will occur in the area. The third is they look at the sales at the same day of prior calendar year. Another factor that Hard Rock Cafe considers is the entree sales data, each entree is present 1 customer. With the consequence of the forecast, Hard Rock Cafe estimates the number of guest should come and they can have an appropriate anticipate staffing and menu.
There is an undeniable fact that inventory management is a new aspect of Hard Rock cafe. It isn't too much when declaring that the assortment of rock and roll and memorabilia is a trademark which makes Hard Rock cafe widespread everywhere around the world. Customers come to Hard Rock Cafe not limited to the meals they serve there also for the items of their favorite artists they can find on the cafe surfaces. These things; including autographed guitars, apparel from world trips and rare photographs; are accumulated and taken attention by a particular group in Orlando. They control every single item with every single history, know exactly which item is being exhibit in which cafe on which wall through an inventory system using advantaged technology. An life circle of the exhibition of something is just about 5 to 7 years. After these years, that is cut back to Orlando and renovated while another item has been replace it on the wall
Hard Rock Cafe has lunched the first restaurant in Ho Chi Minh City through franchise license bought by Viet Thai International Company (VTI). This restaurant string has been successful for since 1971 and in more than 166 worldwide locations. It appears that after a yr launching, Hard Rock Cafe Vietnam (HRCVN) is on the right course to the success. VIT (HRCFVN franchisee) in addition has a long term vision to develop the string in Vietnam. Director of VIT released on the introducing day that his company will have at least two more Hard Rock Cafe in Vietnam in 2012, one in Hanoi and a different one in Dang Nang city ("Rock Passion, 2010". n. d. ). To be able to examine if HRCFVN is a successful model in Hanoi, this writing will verify opportunities and problems for HRCFVN based on its some key decisions of procedure managements.
Goods & Services Design: As franchise, HRCFVN has been benefited from Hard Cafe international in providing the very best quality of goods and services for its customers. Hard Rock and roll Cafe Ho Chi Minh city can offered more than 500 customers at the same time, because of this, if Hard Rock and roll Cafe expand its business in Hanoi, this size would be looked at to apply. This would be considered a good point to served big events and parties in the meantime not many restaurants in Hanoi are large enough.
Based on menu of Hard Rock Cafe Ho Chi Minh, they are providing a very varied and good menu from refreshments to eats and a good special menu for kids. These is only one thing that would be an issue for refreshments and eats menu is that the Northern foods are very deferent with the South. The restaurant must do researches to make food and drinks suited to the North people's taste.
Besides, a series of rock and roll t-shirts and pins selections are also offering at Rock and roll Shop. This is unique feature which is no restaurant in Hanoi can provide. This might offer Rock lovers opportunities to possess a rock and roll t-shirts. As Hard Rock cafe is changing its technique to response to procedure management, they assume that they don't sell foods or refreshments, Hard Rock and roll Cafe offers an unique different experience (Hard Rock and roll Cafe Quest). At HRCF Ho Chi Minh, they are offering Rock' n Roll memorabilia with a huge selection of pieces of guitar, dress of Rock 'n Move legends such as John Lennon, Jimi Hendrix, Pantera, Kiss, Vehicle Halen, Motorhead, Pearl Jam, Eagles, Scorpions, Jon Bon Jovi, Steven Tyler, Chuck Berry, Elvis Presley. By offering these items in Hanoi, it would be another a key point to " move" customers approaching to the restaurant. Regarding service design, as Jey and Barry comment that developing services is challenging because they often times have unique characteristics and in reality. Viewing service quality point only, there exists a big distance if compare Ho Chi Minh City and Hanoi. Service quality in Ho Chi Minh city is usually evaluated superior to Hanoi. It would be a challenged point for Hard Rock when they grow to this location.
However, Hard Rock Cafe is well know in flexibility with the product, design therefore many other areas of their restaurants predicated on the neighborhood market they enter into. This means that they try to present themselves customizing what to famous brands their local customers. They empower the local franchisee to generate their own Hard Rock and roll Cafe that provides unique visitor experience. There is absolutely no doubt that they might respect the traditions and culture of the local people and design your restaurant adjustments get back view in your brain. That would be a key to lead to the success when they do business in Hanoi.
Quality Management: As franchisee, HRCFVN will be provided, led and trained international management standard which Hard Rock and roll Cafe is making use of worldwide with almost 40 calendar year experience. The neighborhood owner VIT will have many opportunities to learn how to control Hard Rock Cafe in Ho Chi Minh and then apply key learning for location in Hanoi. In addition, VIT is also a major name in food and drink industry in Vietnam. They are really owning and functioning High Land Espresso brand which includes more than 60 top quality coffee chain nationwide with an increase of than a decade experience. They also have a high certified management team who be considered a good source for the business enterprise expand.
Location:. It is clear that Vietnam on the whole and Hanoi in particular are a safe location to invest with high stable politics conditions. Furthermore Vietnam is the second fastest economy expansion in Asia - Pacific with the 13rd largest population in the world. The administrative centre of Vietnam is a good location to get as the income of folks is increasing quickly. As a result, customers would welcome a high end restaurant with deferent advertising tips as Hard Rock and roll Cafe even they have to pay more. Besides, Vietnamese culture is more open up with Western life-style, thus in term of communal norm, it is not hard for customers to see a new style in town.
There is an another a key point that need to clarify that any restaurant must pay much account - location of restaurant. Location is sometime considered keeping track of up to 80 percent of successful opportunity in restaurant business. In fact that Hanoi is now hard to find a good location to Hard Rock and roll as good and convenient locations are been already occupying by other challengers. Thought the current owner of Hard Rock and roll cafe Vietnam is very successful in finding perfect location for his or her High Land Coffee chain, but to start a Hard Roack cafe would be definitely harder because they need a much larger location than a restaurant.
Supply Chain Management: It isn't difficult to find a professional suplier who can provide fresh, quality materials and products to the restaurant. Metro supermarket (a giant wholesales supermaket from Garmany) has at leat two distribution centers in Hanoi that happen to be current main suppliers for five star hotels and retaurants in the city. Furthermore, there are ten of smaller supliers who can meet whatever Hard Cafe's requirements. The faraway from Metro and other suppliers to the dowtown of Hanoi is around 15km, 40 minutes for vehicles or vans attaining any place in the location to provide foods and drinks on time. There's a taugher task which would be a moving the memorabilia among locations to change the experience whenever a visitor visit. This is a significant factor in supply string to generate the best circulation items among its participants.
Human Resources: It really is a strengthen point if Hard Cafe expand its business to Hanoi. As among the finest high end espresso chain, VIT has a big number of competent employees who are ready to start these project as key customers. In reality, VIT has several other restaurant projects and they have effectively used their current human sources to resolve one of the most difficult tasks in any businesses - people question. Regarding recruitment of employees who are are passionate about music, like to serve and express the knowledge to customers, it isn't a big obstacle as Hanoi work force are young and well informed. The recuitment can aim for to hundred of thousand students who are learning at ten of colleages and colleges in Hanoi. These targeted employees are keen to Rock'nRoll lyfe style and would be the best forward liners to multiply the spirit of the idea to local customers.
As an international restaurant chains, Hard Rock will provide professional classes for local employees with international requirements which is opportunity point for Hard Cafe in Hanoi to acquire better staff team with international standard.
Inventory Management: There is no big task for inventory of Hard Cafe as key dealer can be reached by in 40 minutes by vans and there are many alternative suppliers who ready provide and meet all demands. Thus, inventory should limit to reduce size except special food and natural material which remember to import.
Memorabilia are definitely more concern for Hard Rock and roll inventory as it 0000 pieces will be circulated among 160 locations throughout the worlds. However, it appear that this work has been well organized by Hard Rock Cafe International with $40 million respected memorabilia are catalogued, each piece is known where you can be (Gusa and Inci, 2008)
Scheduling: Predicated on the current business design of Hard Rock Cafe in Ho Chi Minh city is offering full service event planning service for all happenings. Wedding caterers, entertainment, and event merchandise can be personalized to complement every event ("Hard Rock Cafe HoChi Minh, " n. d. ). if this range is put on Hanoi location, this restaurant is seen as a medium and large size in the city. All community event in the region will be targeted. With the unique and deferent point of sales, it is potential that Hard Rock and roll Cafe would be a favorite place for happenings related to young customers. However, there is merely challenge is seen that the restaurant will not be a stunning place for vacationers, especially for individuals who come from American countries. The reason why can be clarify that if you happen to be The U. S, it would be good to explore Hard Rock and roll Cafe's Rock and roll 'n Spin experience right in the house land of this music. However, this purpose will less attractive when the restaurant is finding within an Oriental country enjoys Vietnam.
It is also a obstacle point that Hard Rock Cafe will need longer time to attain ROI (Return on Investment) things than Hard Rock Cafe in Ho Chi Minh city because, outside eating out culture is popular in Ho Chi Minh city. People spend much more budget to eat outside anywhere in Vietnam, particularly through the weekend. Second, Hard Rock and roll Cafe must invest a sizable of capital to attain high quality standard as requested by Franchiser. However, to grow business in Hanoi is a right direction and it should take action immediately as they as have placed successfully a first step in the main market of Vietnam.