Nova Southeastern University

Wayne Huizenga Graduate School

of Business & Entrepreneurship

Assignment for Course: (OPS 5095 - Service Operations Management (Day)
Submitted to: (Professor Thomas E Griffin)

Submitted by: (Stevenson Saby, Kristopher Thomas,

Echo Dong, & Momoco Xie)

(ss3304@nova.edu)

(Cell 561-386-0597)

Date of Submission: August 6, 2014

Title of Assignment: CASE STUDY SUNSET GRILL

CERTIFICATION OF AUTHORSHIP: We certify that we are the authors of this paper and that any assistance we received in its preparation is fully acknowledge and disclosed in the paper. We have also cited any sources from which we used data, ideas of words, whether quoted directly or paraphrased. We also certify that this paper was prepared by us specifically for this course.

Student Signature: Stevenson Saby, Kristopher Thomas,

Echo Dong, & Momoco Xie

*******************************************

Instructor’s Grade on Assignment:

Instructor’s Comments:

Executive Summary

This paper recognizes the reasons why Sunset Grill is not working at its maximum capacity, thus minimizing its revenues. This paper evaluates what makes Sunset Grill at Blue Mountain an alluring establishment while likewise illustrating means in which it can augment its operational potential. The paper will demonstrate how the restaurant is missing the mark regarding its revenue potential for reasons identifying with exorbitant output time, deficient configuration characteristics, and additionally a wasteful usage of facility design and an ungraceful worker base. There are major issues, which have led to income loss, for example bureaucracy, inefficient workers, and long waiting hours for orders to be processed. This has made the restaurant loose more customers. However, the exceptional locale of the restaurant makes it convenient and accessible to customers especially tourists. In addition to this, their fresh local sustenance menu appeals to numerous customers and this serves as their greatest strength.

Background

Sunset Grill at Blue Mountain situated at Blue Mountain in Toronto is an all-day "fresh to request" breakfast restaurant possessed by Bruce Melhuish and his associate. Dissimilar to most eateries in the area, Sunset Grill at Blue runs only a solitary shift daily with the hours of operation from 7am to 4pm lasting through the year. The franchise viewpoint is to keep up a benevolent environment, with a serving made to request fresh and nourishing sustenance (Butterworth-Heinemann, 2005). It is one of two Sunset Grill establishments situated in Toronto's traveler terminuses. This scene has impacted both on the achievement and a few difficulties to the establishment owners. Case in point, because of being positioned in a tourist territory, numerous customizations with the design, floor furnishing, and stock administration added to the first financing expenses. Nonetheless, in the first year of operations, Sunset Grill earned back the original investment monetarily. In spite of the fact that Bruce has made this accomplishment in the first year, the business presently confronts some operational issues that frustrate the potential for Sunset-at-Blue to produce more transactions.

Bruce has perceived a few issues with the restaurant operation, which make restraints to their deals production potential. Several problems Bruce noticed include.

➢ Lines on weekends could take up to 25 minutes of hold up time.

➢ Normally 40 to 50 chits/requests delaying in the kitchen to be cooked. Bruce approximates the cooks use approximately 5 minutes for every breakfast order.

➢ The normal turn time is 32 minutes. This is the time customers get their nourishment request to the time they take off. As of now, the restaurant has 24 tables inside, 13 outside, which are just being used in June through August. Everyday deals cycle is subject to the visitor eating time and the recurrence of turning tables.

➢ Likewise on weekends, it takes more time to get nourishment to the tables on the grounds that servers are not efficient in serving customers.

➢ Preparation time for burger, steak, or chicken is twelve minutes for every request contrasted with the 5 minutes for the breakfast things so this stretches the deals process duration or time to get clients taken care of.

➢ There is lower limit of customers amid the winter months since the terrace is shut. The yard is inoperable amid winter months. This decrease in capability brings down the deals production potential for shareholders.

Problem Statement

Sunset-at-Blue broke even in the initial year of operation. Nonetheless, the shareholders have confronted issues with diminishing operational lines to turn tables faster and reduce the holding up time for customers, which at last prompts creating more income.

Analysis

Sunset-at-Blue has operational disasters on administration of capability and demand, which ought to be considered to attain achievement. It was a restaurant, which intended to offer pocket friendly foods that charmed the whole family amid their holidays. The franchisor of this restaurant dependably was centered on how he could spare holding up time to the customer when they come to consume in the restaurant rather than the client's gratification (Panneerselvam, 2006). This prompted complaints from customers who were dissatisfied with long queues and long hours of processing orders. Bruce assessed these complains and devised some practical solutions for them. Having acknowledged that during the weekends they had many customers, Bruce decided to employ part-time waiters. This helped in lessening the waiting time for food to be delivered to customers.

No waiting space

The restaurant was not equipped to making an exceptional space for customers to sit at the restaurant on the off chance that they have to wait. Equally, as mentioned in the case, the customer needed to hold up to around 40 to 50 minutes to get the table and request their nourishment. The absence of this holding up space was distressing to customers. They could be losing some customers because of inability to discover an alternate spot for waiting as orders are being served. Additionally, no one needs to wait for 50 minutes for a table on an uncomfortable spot.

How to improve customer-waiting time

The owner understood the issue and accordingly he chose to enhance the circumstances to let clients get nourishment rapidly and decrease hold up time. The restaurant's forte incorporated two valuable variables: fresh, delicious sustenance and low cost. All the food in the menu were cooked freshly and examined to verify they were nourishing as could be expected under the circumstances. Meanwhile, the costs of breakfast were kept up low, which were most alluring to costumers (Johnston, 2003). The shortcomings of the restaurant were clear to perceive, particularly its inadequate servers and the long time for normal turn. Most employees were not coached which led to inefficiency in service delivery. Furthermore, because of the constrained limit and the confounding request in the kitchen, the time for client holding up in the line was long, almost thirty minutes (Slack & Chambers, 2009). The incompetent client service and sustenance supplying may prompt the loss of clients. Separated from those, there were prospects for the restaurant. The ventures from intra-west duty are persistent to foster real estate in this town. Sunset-at-Blue profited from this example, they shared the exercises so that its sales were very identified with the developing Town inhabitance rates. Furthermore, in the locality of this restaurant, breakfast choices were rare for the clients; prices for contenders' were higher than the restaurant.

Conclusion

Sunset-at-Blue is popular amongst family members and tourists. Their main product is all-day breakfast with a robust reputation in fresh and nourishing sustenance. The restaurant could increase its sales by lessening the waiting time for orders to be processed. This means that the quicker the orders are processed, the higher the number of customers they will serve, and the higher the sales. However, they ought to have an additional space where customers can sit as they wait for their orders to be delivered.

References

Butterworth-Heinemann, E. (2005). Strategic Operations Management. New York: Prentice Hall.

Johnston. B. (2003). Cases in Operations Management. London: Prentice Hall.

Panneerselvam, R. (2006). Production and Operations Management. New Delhi: Prentice hall.

Slack, N., & Chambers, S. (2009).Operations Management. New York: Prentice Hall.