Irie Caribbean restaurant is located in the heart of Toronto’s Italy district. The restaurant was established by Leroy Morrison and Elgon Walker. The restaurant focuses on providing its clients with an authentic Caribbean experience ranging from the restaurant's décor to the menu. The restaurant is fully licensed and has a catering service which accounts for 9 percent of its total revenue(Jackson, 2014). Irie Restaurant has been experiencing a fall in its sales figures in the second year of operations making the goal of franchising the brand a distant dream for the two co-owners.
Decreasing sales figures are only a symptom of the overall operational structure problem that the company experiences. Canada's food market is projected to grow tremendously over the coming few years making(Dorling Kindersley Publishing, Inc, 2000). the dip in the performance of the restaurant, even more, concerning. The structure of operations does not account for proper staffing, advertising, and corporate relations. The restaurant is also in dire need of a remodeling to make it more appealing to the clients(Jackson, 2014).
The restaurant employs sixteen workers, both full-time and part-time, who work in all the areas of operation(Jackson, 2014). The restaurant, however, lacks a full-time bartender. This situation forces the other workers to take turns serving drinks to clients, lowering consistency and quality of the drinks served.
The owners of the business rely on word of mouth to advertise its services and have made no real strides ensuring that the restaurant’s name and services to a wider region of the country. The clientele that patron the Caribbean restaurant is usually the same ones who started off with the business. Toronto is home to the largest college in the country(Dorling Kindersley Publishing, Inc, 2000). University of Toronto's main campus, George, has a population of 45,000 students who represent a significant potential market for the restaurant(Dorling Kindersley Publishing, Inc, 2000). No effort has been made to advertise its Caribbean cuisine to this often adventurous and ethnically-diverse market. The operation system fails to address the crucial aspect of marketing with as much scrutiny as it deserves.
There is also a need for a layout redesign in the restaurant. The entrance to the restaurant is a narrow passageway. The passageway is extremely close to the bar which serves as a waiting room and a point of picking up takeaway food(Jackson, 2014). The ambiance of the café is set to match the Caribbean theme with yellow and green colors mixing with soft tropical calypso music. The soft reggae music adds a tropical feel in the middle of the busy city of Toronto. Another big problem is the small restroom capacity that the restaurant has. A single stall for each sex does not suffice as being customer-friendly. Long queues are a common sight during busy dinner hours. These two areas need to be expanded to increase the capacity of the restaurant and attract new customers.
Analyzing Case Data
The problem of staffing problems can be attributed to the laxity of the administration to implement a proper strategy for operations. A properly planned out staffing structure should be set up with a selective hiring process accompanying the same. Morrison and Walker did not consider hiring a permanent skilled bartender forcing them to train the existing staff how to mix and serve drinks(Jackson, 2014). The current situation raises problems because the quality of the drinks served at the restaurant is inconsistent making repeated patronage rare. The organization of personnel in the business needs thorough revision to have all the positions filled.
The most affected individuals in this scenario are the workers of the restaurant. The servers are paid the state minimum wage and have to deal with tasks that are not part of their job description. The workers can complain of being overworked and this leads to reduced performance. The performance of workers in the service industry plays a big role in the performance of the whole company.
The constraints that hinder the resolution of the problems experienced are the current staffing structure of the organization. The number of clients has reduced in the second year of operations and the sales too by 23 percent(Jackson, 2014). This figure indicates a decrease in the popularity of the restaurant and the client-worker relationship could be one of the reasons.
The problem of dwindling sales figures can also be attributed to the physical layout of the restaurant. The narrow passageway that serves as the entrance of the restaurant needs to be opened up. The bar area will need to be separated from an area specifically made for picking up takeaway food. The second major renovation that should be done would be in the restaurant's bathrooms. A bigger space with more stalls should be allocated for the bathrooms to serve the clients more effectively.
The people affected most by this issue of the bathrooms are the patrons of the food joint. The clients have to wait in long queues to access the bathroom during peak hours. This inconvenience serves to reduce the number of customers who would like to eat in the restaurant. The constraint is in the space, and a major refurbishment of the restaurant would be welcome.
The operation of the restaurant relies on word of mouth as the primary means of self-promotion. This strategy has clearly not been successful since the sales of the café have declined from $298,462 to $228,872 in the second year of operations(Jackson, 2014). The decline in the popularity of the restaurant can be attributed to a weak marketing strategy. The unlit sign on the front of the restaurant is barely noticeable, and the services of the restaurant are not well known. There is a serious need for more investments to be made in ensuring the restaurant is advertised as a great place to experience culinary excellence. Caribbean immigrants account for the fifth largest group of foreigners in the country of Canada(Gupta, 2009). The restaurant can also be advertised as a good place for those who are adventurous to try a new food type.
There need to be ads running online, with the inclusion of the restaurant's website, which advertises the takeaway and catering services as well as the great menu of the hotel. The marketing strategy should also offer special discounts and meals for students in the area. In this manner, the restaurant will be able to capture the large market that students in the city offer.
Alternative Solutions
A staffing framework should be laid out by the two managers. A full-time bartender should be hired to cater for the customers and provide quality service. The staff should be well trained and paid a competitive salary to ensure the best service delivery.
A renovation should be done at the restaurant. The renovation should include widening the entrance, creating a closet for the coats and expanding the bathroom space. These renovations will make a big impact in boosting the image of the restaurant and increasing the number of clients.
Marketing should be done across all media platforms. Print adverts in Caribbean Camera, Toronto Star, and Toronto Sun would reach a circulation of 380,000 and 381,000 and 143,475 readers respectively(Jackson, 2014). Online presence will also help to boost sales.
Key Decision Criteria
The decisions that will be carried out by the management of the restaurant on ways to improve operational structure should be in line with the following criteria:
1. Should lead to increase in sales
2. Should lead to a greater customer satisfaction level
3. Should lead to an increased profits
4. Should be in line with the restaurant’s mission and vision
5. Minimize risk
6. Improve employee morale
7. Cost effective
Evaluation of Alternatives
1. Staff Restructuring: The best, worst and most likely scenarios
The best case scenario would be if in the short term, there is an immediate acceptance of the new structures and a new bartender is hired immediately. In the long term, the new structure would ensure that all operations are handled in the most professional way, clients are happier and there is a surge in the number of clients.
The worst case scenario would be a complete workers revolt in the short term. This would lead to cases of underperformance and more clients would leave the establishment.
The most likely outcome would be a slight resistance to the new system but a gradual adoption would occur. The new bartender will deal with the clients in the bar making sure they are well served. Sales should increase.
2. Hotel Renovation: The best, worst and most likely scenarios
The best case scenario would be if the renovation costs are within the budget and on schedule. The new ambience will attract more clients making the popularity of the restaurant soar.
The worst case scenario in the short term would be costly renovation costs that would be more than the budget. In the long term, the renovations do not serve to increase sales figures therefore driving the company to a loss.
The most likely outcome would be a slightly costly renovation that will be compensated for with an increase in sales upon re-opening.
3. Aggressive Market:The best, worst and most likely scenarios
The best case scenario in the short term after aggressive marketing would be a surge in popularity of the restaurant and records of increased profit. The restaurant will capture a big market share of the Caribbean food eaters.
The worst case scenario would be a complete failure in the marketing strategy with the restaurant losing more money for the ad places.
The most likely scenario would be an increase in the demand for its catering and take-away services which record a small percentage of total sales(Jackson, 2014).
Recommendation
Irie Restaurant offers great food made with expert chefs to bring Caribbean cuisine experience to the inhabitants of Toronto. The business has a good operational plan but needs more aggressive marketing strategies to capture a bigger market share and increase sales. The restaurant has had its sales figures shrink from its debut year raising concerns over the viability of its operational organization(Jackson, 2014). A marketing strategy that includes print and electronic media campaigns will serve to increase the popularity of the restaurant. Toronto Sun alone would reach a circulation of 381,000 Canadians in one day(Jackson, 2014).
Exposure is the main way to increase the sales. The business also needs to launch a website through which potential customers can view the services offered by the restaurant including its catering services. 96 percent of first-time customers said they were not aware of the catering services offered by the restaurant(Jackson, 2014). Many people who throw parties would love to have a Caribbean menu and through ads, the restaurant can become the leading caterer in the whole of Toronto.
References
Dorling Kindersley Publishing, Inc. (2000). Canada. New York: Dorling Kindersley.
Gupta, V. K. (2009). Restaurant management. Chandni Chowk, Delhi: Global Media.
Jackson, L. A. (2014). Morrison's Dilemma. case study, 1(1), 28-39.
