Animated Business People Background

Case study on: The Mint Café Submitted by; MBA SEM-II: 07_ARBAB ASRAF MBA SEM-II: 09_ASEA SHARAF QUIDWAI MBA SEM-II: 24_MOHD. FAIZ MBA SEM-II: 27_MOHD. IMTIYAZ MBA SEM-II: 43_SHAFOORA HABIB MBA SEM-II: 47_SHAHNAWAZ AHMED MBA SEM-II: 51_SHIVEEN ANSARI

CASE HIGHLIGHTS • Mr. Raj Malhotra took over a family owned restaurant from his father in 2001. • Key points about restaurant__ 1.Opened in year 1960 . 2.Situated at key shopping area in Bangalore and a landmark. 3.Cheap n Best & has nostalgic appeal. •

Mr. Raj wanted new customers and thus opens up a new fast food restaurant at same premises.

• Around Fifty percent of people who come at fast food section asked for parcels Contd……

Contd…… • Mr. Malhotra emphasized a lot on quality of food by ensuring that the ingredients were fresh. • Expecting that there may arise problem of unavailability of material, Mr. Malhotra opts for more than one supplier, not sticking to advice of his father i.e. the relationship between and commitment of buyer and supplier is essential for the growth and survival of the business. • There was problem of quality and delaying of items with new supplier. • Malhotra was unhappy with new supplier and decides to go back to previous supplier

::::QUESTIONS :::: 1.

Which would be a better option for Malhotra – opening the fast food section at a new location or at the same location as given in this case ?

2.

Which operational factor plays a major role in establishing and running a restaurant ?

3.

Should the selection of the supplier be totally based on the least price offered ?

1:Which would have been a better option for Mr.Malhotra – opening the fast food section at a new location or at the same location as given in this case? Justify your answer.

• Mr. Raj Malhotra should go for the first option opening a new fast food joint at a new location than the later option which is opening a Fast Food section as an extension of the old restaurant.

JUSTIFICATIONS • Regular customers/old loyal customers may face inconvenience and due to space crunch. • Service may suffer . • Congestion at the restaurant. • Core service failure: service mistake willing errors service catastrophe (long wait for service) • Customer unsatisfaction leading to customer switching behavior.

• A new fast food joint at a new location will be consistent with the idea of attracting new customers. • Key to survival and growth. • Generation of new revenue streams through customers segmentation. • Better handling of both restaurant can be achieved.

• Different offerings at different convenient locations will serve the customers well. • Cost cutting measures like  self service  stand and eat can be properly handled • Old customers can be given undivided attention.

• New location will lead to customers moving in and moving out quickly. • The old one will continue to sustain through its nostalgic value. • Old regular customers will not compromised for the new one.

2:Which operational factor plays major role in establishing and running a restaurant? There are a number of factors that are responsible for efficient running of a restaurant….. • • • • •

Demand forecasting Process design and layout Waiting lines Quality management Inventory control

Demand forecasting • Good decisions begins with good forecasts. • Forecasting is the art and science of predicting future events. • Demand forecasts drive many aspects of an organization, from planning facilities, personnel, production, and materials acquisition to market & distribution. • Inaccurate demand forecasts can lead to over or understaffing of operations, product shortages, excess inventories and late deliveries.

Process layout Functional layout 1.Job shop process 2.Cellular process Job-shop and cellular production processes must be designed for flexibility to accommodate a variety of movement patterns.

Waiting lines….nobody likes to wait. • Waiting lines are a common and important component of most service & manufacturing system. • If customer at a fast-food restaurant have to wait too long for service, the customer base will disappear. • Queues form when short-term demand for a service exceeds the capacity of the system to serve. • Normally service systems are designed so that on average the service capacity is greater than the long term expected demand.

• But what make queuing system so interesting to study, however is that the exact moment that customers will demand service and the amount of time it will take to serve them can both be random. Thus, although the average service capability may exceed the average demand rate, over a shoot time interval the demand rate may exceed the service capacity.

Quality management system • Good product quality does not occur by accident. To achieve it, an organization must know what constitutes good quality and must be able to measure and monitor it in some way… • How to achieve quality? 1. Incoming Material Inspection. 2. In-Process Inspection and Testing. 3. Evaluation of Final product. • Total Quality Management

Inventory Planning • Inventories are expensive; they tie up financial resources that could be used for other purposes and they incur ongoing costs of storage, handling, taxes, and spoilage. • Excessive inventories are frequently a symptom of more fundamental problems with the production system, such as poor quality, slow setups, poor scheduling, and poor process design. • Reduction of lead time by incorporation of just-intime techniques.

3: Should the selection of the supplier be totally based on the least price offered? • Current Hindrance Occasional problem with quality of item supplied and delivery dates.

Justification: • Every financial/investment decision of the firm should lead to the possible best output, not only in the short run but also in the long run: • Cost and Quality not always go hand in hand.

Compromising with quality of the product/services leads to dissatisfaction of customers that further leads to negative advertising of the firm.

Expectation after shifting to new supplier: 1. Competition between suppliers that would lead to lowering of prices of raw materials. 2. At least better quality is expected from the new supplier. 3. Delivery time should be according to the requirement .

Reasons for shifting to new supplier: 1.Best possible quality of product and services. 2.Reasonable cost. 3. Maintaining cordial relationship with customers as well as suppliers.

• Preference to apply Marketing concept rather than Selling concept. * Instead of selling more stuff to more people more often in order to make more profit is not the motive behind this decision but satisfying the customers is more important.

• Instead of make and sell its all about sense and respond. Instead of hunting it is gardening. • Providing best product/services, being more customer sensitive is required. • Minimizing cost should be there but not at the cost of quality of their product.

Last Word: Marketers who don’t learn the language of quality improvement , manufacturing, and operations will become as obsolete as a buggy whip. We have to think of ourselves as customer satisfiers.

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