Problem Statement - What are the Problems that require Attention?
The case study ‘Morrison’s Dilemma’ by Leonard A. Jackson over the Caribbean restaurant by the name ‘Irie Caribbean’ discusses in detail all the aspects of restaurant operations, reporting about each and every aspect of its functioning to find out the problems faced by the management. Morrison and his partner wanted to turn the business into a profitable venture.
This case study digs deeper to analyze why the business has not been able to generate profits as per the owners’ expectations. Jackson, the case study writer, quotes Morrison in the beginning, feeling proud to get second ranking for the Caribbean restaurant by the readers of the NOW magazine. One cannot find any fault in the positioning of the restaurant in the Toronto marketplace. Decor and ambience seems perfect but a reading of the case study raises questions about the restaurant layout. Among various leading criteria discussed in the case study, namely Caribbean cuisine, menu, staff, competition, marketing, and financial ranking of the restaurant, these are prominent. Genuine problem areas include restaurant layout and marketing, which need a further digging to evaluate how efforts need to be aimed at these weak areas to run the business of the restaurant efficiently.
Data Analysis
Layout & Design
First, layout of the restaurant needs analysis. It is built on the covered area of 1,600 square feet. Passage of entering to the restaurant is tight and not spacious. Its situation of coming in between the bar area and the restaurant’s right outside wall is faulty. Lobby space is not enough to make the waiting customers relax until tables are vacant. Making the customers to wait near the bar has added to the already crunchy space. Further, the bar area becomes crowded when take-out orders are also serviced around the same space where customers are waiting. Either there is huge design deficiency or an area measuring 1,600 is not enough for the smooth functioning and to add comfort to the customers. Lack of a ramp further adds to the discomfort of customers, as they have to ladder up two steps from the passage to take entry inside the restaurant. To add to the new customers’ woes, there is no proper lighting of the restaurant’s outer signage; it is not visible from the entry point to the restaurant, making it uneasy for customers coming beside the College Street to trace the restaurant from the lighted signage, particularly during late evening time. Management could hardly do anything in this matter, as the zoning law required it, showing the signage not protruding but bolted. Nevertheless, at least the signage could be lighted for patrons’ comfort (Jackson, 2016).
The case study reveals that earlier there was a pizzeria in that place. So, design was not suited to the new restaurant needs. Further, great inconvenience was felt by the patrons, as they have to go downstairs for using washroom, which was cramped. Visitors could be seen waiting in the stairs to use washroom. Definitely, design in the basement was faulty, not facilitating any change in the positioning or even renovation of the washroom. The bar area was also not ideally positioned, as takeout orders were also served from that place besides serving drinks to the dining patrons (Jackson, 2016).
One cannot ignore the importance of layout and design of a restaurant. It is so much important that all other aspects, such as menu, customers, and cost factor, become secondary if layout and design are not supportive; actually no individual factor should be protruding towards a different direction (All Food Business, 2013).
Similarly, a good entrance leaves a long-lasting impression in the minds of visitors. It should be spacious enough for patrons to wait their turn. A good entrance supports the design layout as well. It should provide a glimpse of buzzing environment inside the restaurant, prompting visitors to come inside (All Food Business, 2013).
Marketing
Morrison believed in maintaining cordial relations with customers and for marketing efforts gave preference to word-of-mouth marketing strategy. There was no fixed amount to be spent on advertising but roughly $1,500 to $2,000 was spent in a year through print media. Irie’s sales promotion included lunch special everyday for companies in the Toronto area. The restaurant also offered free lunches by building relationships with a local food store if the customers of the food store gathered one hundred points through shopping at the food store although this marketing initiative failed. Other marketing tactics included free meal once a month to school children and cosponsoring of a league soccer team. Customer appreciation day was celebrated once a year besides holding a raffle, offering a free trip to Montego Bay, Jamaica (Jackson, 2016).
Alternatives Analysis
In the context of Irie Caribbean restaurant, the management, it seems, has taken a wrong decision in taking on rent that place, which is ill-suited to its needs although it has taken full care that the restaurant is within reach of the maximum population, as situated near to the marketplace. The most problematic thing is that washrooms can neither be renovated nor improvised. These problems cannot be resolved until the restaurant is shifted to another place that is more visible from distance, has enough lobby space, and the interior design suits the restaurant needs of serving liquor to the seated patrons and segregating it from take-out order servicing.
In marketing, Irie management had the option of using online medium of advertising, which it didn’t use. It preferred to depend on a single off-line media, NOW, that is a magazine distributed in free. It should have tried the alternative of a daily paid print media, such as Toronto Sun or Toronto Star, as readers value such advertisements more than printed in free print media (Jackson, 2016).
Key Decision Criteria
Management has to take some decision if it intends to follow a long term policy of staying in the business. The only alternative available seems to be to shift to a better designed location in the marketplace only. As location near to the market suits the restaurant needs of attracting customers, it should locate a place that has washroom facility on the same floor where food is served and entrance to the restaurant is not obstructive. Layout and design deficiency cannot be amended in the case of Irie Caribbean restaurant; therefore, the only alternative pertinent to the situation is a shift to another place in the same area.
In marketing, Irie management should devote time on advertising through the online platform. Results are quick and cost is also not high. Facebook, Twitter, and Pinterest accounts are very helpful in adding to the customers’ list in restaurant business (Restaurant Engine, 2015).
Recommendations
Not forgetting that a layout impacts a restaurant’s bottom line, i.e. its income, therefore, if no change is possible in the design and layout of the given address of the Irie Caribbean restaurant, the management should start searching an address with better layout and design, as it is one of the very important factors of recording success in the hospitality business. Tables are the targeted area of a restaurant. Also, staff should have enough walking around area to serve customers without coming in-between them (Hayse, 2006). As the present location cannot afford these comforts, it is recommended to shift the Irie Caribbean restaurant to some better designed location if construction anew is not possible.
In marketing, it is recommended that marketing initiatives should include such online mediums as Facebook, Twitter, blogging, setting up of Google Places, and including stakeholders such as radio stations, TV stations, and car dealerships. All these initiatives need small budgets only (Restaurant Engine, 2015).
Action & Implementation Plan
If Irie Caribbean restaurant plans to stick to its ground of running the restaurant successfully, it needs to change the present ground and shift to a place that has a welcoming entrance and where internal renovation and modification is possible. In marketing segment, the management needs to hire digital media personnel to register its mark through social networking tools. It should start working on designing its own website as early as possible.
References
All Food Business. (2013). Restaurant design - restaurant layout. Retrieved from http://www.allfoodbusiness.com/restaurant_layout.php
Hayse, M. (2006). Layout & how it effects your bottom line. Retrieved from http://www.maxeyhayse.com/interior_design_layout.html
Jackson, L.A. (2016). Morrison’s dilemma.
Restaurant Engine (2015). 5 ways to market a small restaurant on a small budget. Retrieved from http://restaurantengine.com/5-ways-market-small-restaurant-small-budget/
