In relationship to the Hard Rock Café business:a) Describe three different forecasting applications at the café b) Name three other areas in which you think the café could use forecasting models (no o

Hard Rock Cafe Inc. is a food service, hospitality, and gaming business originally focused on operatin g

casual dining restaurants. Founded in London in 197 1, the company developed its brand through the

themed restaurant experience. Customers are typical ly greeted with an ambiance of rock and roll. The

company experienced signi cant growth and expansion in the 1990s. Today, Hard Rock Cafe is diversi ed,

with operations in the food service (themed restaurants) industry, gaming (casino) industry, and hospitality

(hotel) industry. The company has also achieved glo bal status, with restaurants, hotels, and casinos in more

than 70 countries. In 2007, the Seminole Tribe of F lorida bought the company. At that point, the Hard Rock

Cafe Inc. headquarters were moved to Orlando, Flori da. This business case is an example of how the

di erentiation generic strategy can support business development. Also, this case of Hard Rock Cafe sh eds

light on the importance of e ective operations management to facilitate business growth and expansion in

industries with high competition.

The success of Hard Rock Cafe is partly linked to the rm’s e ectiveness in addressing the business ne eds

pertaining to the 10 decisions of operations management. Also relevant are the productivity principles and

concepts on personnel and other areas of the busine ss organization. Hard Rock Cafe directly and indirectly

competes against other rms, 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: 10 Decisions of Operations Manageme nt

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 ine ciency of operations. At Hard Rock Cafe, these 10

decisions are applied to ensure that the brand, com pany reputation, and nancial targets are met.

The company’s success is dependent on operations ma nagement, 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. Fo r example, such ambiance and image

represent the hard rock culture, with emphasis on w hat the music genre means to the company’s

target customers. Managers assess di erent attribut es of target markets and apply modi cations to

the products and services to suit the speci c deman ds of the local market. Still, these products and

services consistently follow the general speci cati ons of the Hard Rock Cafe brand image.

2. Quality Management . Hard Rock Cafe applies quality management by main taining a speci c

quality assessment role for the operations manager. The manager uses the rm’s quality standards

to identify issues and weaknesses in operations. Re commended changes are then applied to

ensure compliance throughout Hard Rock Cafe. For ex ample, the company adjusts quality rules as

a response to changes in the market condition, with consideration for social trends that a ect the

business.

3. Process and Capacity Design . Hard Rock Cafe’s process and capacity design refe rs to

internal business processes and the target capacity of facilities. Internal business processes

include food preparation, order routing, reservatio ns, and others. The target capacity of Hard Rock

Cafe facilities is based on the condition of the lo cal markets. The company applies process and

capacity design decisions to maximize capacity util ization. Capacity planning is adjusted to

address changes in demand based on seasonal events in the local market, such as festivals and

holidays.

4. Location . Hard Rock Cafe decides about the location of its businesses based on market

analysis and industry analysis. Market research is applied to determine if the market can support a

Hard Rock Cafe in terms of revenue and pro tability targets. Industry statistics are used to

Chapter 1: operaons and producvity Case Study: Hard Rock Café Inc.

determine if expanding the rm through additional locations is feasible. The company’s executives

and corresponding regional or local operations mana gement personnel evaluate market potential

along with the potential of the target location.

5. Layout Design . The company decides regarding layout design by as sessing the expected in ux

of customers and the nature of business operations in the facilities. For example, Hard Rock Cafe

themed restaurants have layout designs that di er f rom the layout designs of the company’s

casinos and hotels. In addition, the company’s rest aurants have di erent layout designs speci c to

the unique requirements of each location. Hard Rock Cafe’s operations managers apply layout

design for e cient work ow in the limited space ava ilable in these facilities.

6. Job Design . Hard Rock Cafe’s job design decisions are reached and applied through an

analysis of needs and expectations of the company a nd its employees. The appropriateness of job

design is evaluated based on employee feedback and company standards. For example, jobs are

designed based on company standards and the sociocu ltural characteristics of the local labor

market. Hard Rock Cafe’s operations management is f ocused on optimizing workers’ person-job t,

while making it easy for employees to do their jobs to maximize e ciency.

7. Supply Chain Management . Hard Rock Cafe’s supply chain management decision s are based

on market demand, variety of suppliers, and invento ry management costs, among other factors.

For example, the company determines target supply l evels based on current inventory conditions

and projected uctuations in market demand. The sup ply chain management decisions are applied

through Hard Rock Cafe’s operations managers and lo cation managers.

8. Inventory Management . The company applies inventory management decision s through

inventory management software, in addition to tradi tion approaches. Hard Rock Cafe’s operations

management uses demand uctuations and historical r ecords to predict changes needed in the

inventory. The inventory is then adjusted according ly. The strategic objective is to ensure that the

inventory levels are adequate to maximize the reven ues and pro ts of the business.

9. Scheduling . Hard Rock Cafe makes decisions in scheduling by e valuating current operational

e ectiveness. For example, personnel involved in op erations management assess the business to

determine operational bottlenecks linked to schedul ing. The schedules must satisfy capacity

requirements. Hard Rock Cafe’s operations managers disseminate planned schedules to sta and

use their feedback to make adjustments. The adjuste d schedules are then applied to ensure

exibility and resilience of the business.

10. Maintenance . Maintenance decisions at Hard Rock Cafe are appli ed based on a comparative

evaluation of assets and the rm’s standards. For e xample, the company has standards on how

much equipment wear and tear is allowed before the equipment needs repair or replacement. Hard

Rock Cafe also has standards and policies on how ma intenance should be conducted, with

reference to the quali cations of maintenance perso nnel or service providers.

Productivity at Hard Rock Cafe

Hard Rock Cafe determines the productivity of its human resources, including kitchen sta and

wait sta , through a set of well-de ned quantitativ e and qualitative criteria that re ect performance.

Some of the quantitative criteria used in operation s management at Hard Rock Cafe are as follows:

1. The number of orders that the kitchen sta ful lls within Hard Rock Cafe’s standard

allotted time versus the number of items ordered by the customers. (Kitchen sta productivity)

Chapter 1: operaons and producvity Case Study: Hard Rock Café Inc.2.

The number of orders that the wait sta serves or d elivers within Hard Rock Cafe’s

standard allotted time versus the number of items o rdered by customers. (Wait sta productivity)

3. The total number of sta members versus the total n umber of orders ful lled in a day.

(Kitchen and wait sta productivity)

4. The number of late or unful lled orders per day ver sus the total number of orders for that

day. (Kitchen and wait sta productivity)

The qualitative criteria for determining workforce productivity at Hard Rock Cafe are based mainly

on subjective judgment of managers, sta members, a nd customers. For example, operations

managers use customer complaints and comments to qu alitatively monitor kitchen sta and wait

sta productivity. Hard Rock Cafe uses these quanti tative and qualitative productivity criteria to

assess speci c performance aspects of its human res ources. The company also combines these

criteria to develop a broader perspective on the pr oductivity and performance of the workforce.

These quantitative and qualitative measures guide p roductivity decisions at Hard Rock Cafe.

Chapter 1: operaons and producvity