Service Management Case Study on Mongolian Grill,Jonah Guo, Queen's MBA
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Amol Feb. 29, 2012
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This is a class presentation prepared for a case study on a Mongolian Grill restaurant in North America. All the content is only presented for educational use only. Photos are from Google Image Search. The team suggested to optimize the restaurant’s design to increase profitability,reduce waiting time while maintaining the unique customer experience
Transcript of Service Management Case Study on Mongolian Grill,Jonah Guo, Queen's MBA
Amol
Feb. 29, 2012
Executive Summary
Existing restaurant in Location A
Open a new restaurant in Location B
Optimize the restaurant’s design to
I. increase profitability
II. reduce waiting time
III. maintain the unique customer experience
Background: Heyday of Mongolian Empire
It existed during the 13th and 14th centuries, and was the
largest contiguous land empire in human history
Mongolian Tent
Grill on the shield
On the way of their journey, Mongolian
warriors sometimes grilled food on the
shield to save time on their journey all
the way to the Europe.
Ancient Mongolian believed that food
should not be cooked directly on fire.
Beijing Hot Pot
Beijing Hot Pot is built on
the same idea.
Modern Mongolian Grill Invented
by Mongolians in Taiwan in ’70s
Both hot pot
and Mongolian
Grill resemble
the structure
of Mongolian
tent.
Modern Mongolian Grill Experience
Youtube:
http://www.youtube.com/watch? v=4PXSKZnakng
Mongolian Grill Service Blueprint
Restaurant
Parking
Décor &
Ambience
Menu & food
selection
Cooking
grill
Presentati
on & taste
Arrive at
Mongolian
Grill
Check
availability
& seating
Select meat,
vegetables &
Sauces/spices
Give to
cooking
station
Receive
grilled
food
Greet and
drink orders
Prepare
food
Prepare
drinks
Stock up
food &
sauce bar
Maintain
Cooking
grill
Prepare
food, sauces
& spices
Billing
Ask bill,
pay & leave
Process bill
Payment
system
Physi
cal
evid
en
ce
Cu
sto
me
r C
on
tact
e
mp
loye
es
(In
vis
ible
V
isib
le
Su
pp
ort
pro
ce
sse
s Line of internal interaction
Line of Interaction
Return to
Table
Receive
drinks,
bread & rice
Serve drinks,
bread/rice
Prepare
rice &
bread
3 times/person
Key Issues in the Case
Capacity constraint
High throughput time
Retaining unique customer experience
Alternatives: 1. Current Design
2. Implement proposed design changes
3. Optimize the proposed design
Decision Criteria & Analysis
Time Analysis
Cost Analysis Additional cost
Fixed cost
$3200 for setting up additional food bar
$2100 for setting up additional oil and spice bar
$600 for additional counter space for cooking grill
Total fixed cost = $5900
Variable cost (per week)
Additional kitchen employee for an 8 hour shift on Thursday, Friday and Saturday
Additional cook in the busy period ( on Thursday, Friday and Saturday)
= 8 X 8 X3 + 5 X 12 X 3
= 192 + 180 = $ 372
Contribution Margin = Revenue – Variable cost = 1425 – 372 = $ 1053
Break even = Fixed cost / contribution Margin
= 5900 / 1053 = 5.6 weeks = 6 weeks approximately
Recommendations
Risk & Mitigation
Potential bottleneck at grill?
Hire more chefs
Build another grill
Reduced kitchen impact
Inventory ?
Just in-time inventory
Looking Forward
Attract customers on
off-peak hours
Other Options
We got this circle-by-circle idea from the Heaven Temple in Beijing,
which was once the capital of Mongolian Empire
Another easy-to-implement idea,
yet may cause confusion for consumers
Crossing Point
Thank You for listening!
Jonah Guo Queen’s MBA 2012
Canada
www.Jonahguo.com
Jonah Guo Queen’s MBA 2012
Canada
