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Hard Rock Cafe Inc. is a food service, hospitality, and gaming business originally focused on operating casual dining restaurants. Founded in London in 1971, the company developed its brand through the themed
restaurant experience. Customers are typically greeted with an ambiance of rock and roll. The company experienced significant growth and expansion in the 1990s. Today, Hard Rock Cafe is diversified, with operations in the food service (themed restaurants) industry, gaming (casino) industry, and hospitality (hotel) industry. The company has also achieved global status, with restaurants, hotels, and casinos in more than 70 countries. In 2007, the Seminole Tribe of Florida bought the company. At that point, the Hard Rock Cafe Inc. headquarters were moved to Orlando, Florida. This business case is an example of how the differentiation generic strategy can support business development. Also, this case of Hard Rock Cafe sheds light on the
importance of effective operations management to facilitate business growth and expansion in industries with high competition.
The success of Hard Rock Cafe is partly linked to the firm’s effectiveness inaddressing the business needs pertaining to the 10 decisions of operations management. Also relevant are the productivity principles and concepts on personnel and other areas of the business organisation. Hard Rock Cafe directly and indirectly competes against other firms, such as Hooters, Twin Peaks, and Planet Hollywood, as well as food service
chains like McDonald’s, Burger King, Starbucks, and Dunkin’ Donuts.
Hard Rock Cafe: Decisions of Operations Management
The 10 decision areas of operations management are critical considerations for managers to improve business operations. The goal is to develop operations that satisfy business objectives, while minimizing
problems that cause inefficiency of operations.
that the brand, company reputation, and financial targets are met. The company’s success is dependent on
operations management, among other factors in the business and industry environment.
1. Service and Product Design. Hard Rock Cafe applies service and product design decisions to maintain the
Hard Rock ambiance and brand image. For example, such ambiance and image represent the hard rock
culture, with emphasis on what the music genre means to the company’s target customers. Managers assess
different attributes of target markets and apply modifications to the products and services to suit the specific
demands of the local market. Still, these products and services consistently follow the general specifications
of the Hard Rock Cafe brand image.
2.
assessment role for the operations manager. The manager uses the firm’s quality standards to identify issues
and weaknesses in operations. Recommended changes are then applied to ensure compliance throughout
Hard Rock Cafe. For example, the company adjusts quality rules as a response to changes in the market
condition, with consideration for social trends that affect the business.
3. Process and Capacity Design. Hard Rock Cafe’s process and capacity design refers to internal business
processes and the target capacity of facilities. Internal business processes include food preparation, order
routing, reservations, and others. The target capacity of Hard Rock Cafe facilities is based on the condition of the local markets.
4.The number of late or unfulfilled orders per day versus the total number of orders for that day.
(Kitchen and wait staff productivity)
The qualitative criteria for determining workforce productivity at Hard Rock Cafe are based mainly on
subjective judgment of managers, staff members, and customers.
For example, operations managers use customer complaints and comments to qualitatively monitor kitchen
staff and wait staff productivity. Hard Rock Cafe uses these quantitative and qualitative productivity criteria
to assess specific performance aspects of its human resources. The company also combines these criteria to
develop a broader perspective on the productivity and performance of the workforce.
5. Inventory Management. The company applies inventory management decisions through inventory
management software, in addition to tradition approaches.
Hard Rock Cafe’s operations management uses demand fluctuations and historical records to predict changes
needed in the inventory. The inventory is then adjusted accordingly. The strategic objective is to ensure that the inventory levels are adequate to maximize the revenues and profits of the business
Q1.1 explain why capacity needs prediction. You are required to reference Hard Rock Cafe in your explanation
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