Executive Summary
Although Sunset Grill at Blue is experiencing a remarkable growth rate, managing demand during the peak periods such as weekends is still a major challenge. Customers have to wait for long to the extent that some resort to alternative restaurants. The management, therefore, is considering various ways of increasing service efficiency to reduce the queues and maintain its large customer base. After analyzing various options available, this study recommends that Sunset Grill at Blue should adopt a policy of hiring part-time workers and alternative services to help in enhancing service delivery and reducing the queuing time on weekends.
Background
Since its establishment, Sunset Grill at Blue, a franchise business owned by Bruce Melhuish and his partner, has been experiencing significant growth. In a period of just one year, the franchise was able to break-even in its operations. It emerged as the business of the year in the counties of Simcoe and Grey. Despite the promising growth with a large customer base, the business owner has a feeling that the new employees are finding it difficult to cope with the pace of the business. As a result, the restaurant always faces long queues of customers waiting for its services on weekends. In some instances, some customers resort to take their breakfasts elsewhere due to the long queuing hours that they experience at Sunset Grill at Blue.
Weekends particularly are always busy for the restaurant. Waiting time ranges between 20 and 25 minutes. At the restaurant, the number of customers in waiting can be between 40 and 50 in a normal weekend. As such, there are cases of order confusion and delays in service. Upon contemplation of the issue, Melhuish realized that the overwhelming queues resulted from the small workforce. The entity only has two servers who are always overwhelmed on weekends. As such, he considered hiring part-time runners who would deliver the meals from the kitchen directly to the tables lessening the burden on the servers. Hiring, according to Melhuish would increase efficiency by increasing the overall daily table turns by five to ten percent. In regards, it is notable that meeting the customer’s demand remained a challenge to Sunset Grill at Blue restaurant. This challenge manifests in the rising numbers of complaints arising from confusion of orders. The franchise co-owner, Bruce Melhuish, pondered on a number of issues including substitution policy, introducing menu boards, increasing the seating capacity of the restaurant, and reducing menu items purposely to reduce the queuing time and manage the demand.
Problem Statement
The main problem facing service operations at Sunset Grill at Blue is the inability to cope with the high level of demand. As outlined in the background information, the restaurant is facing endemic queuing of customers due to the slow pace of service.
Analysis
While Sunset Grill at Blue manager, Bruce Melhuish, contemplates on possible ways of managing the queues and order processing in the restaurant, he needs to consider various factors. First, it is notable that balancing supply and demand in the service industry is challenging. The immediacy and urgency in the service industry make it difficult to balance the supply with the demand in the service industry. As noted in the case, the restaurant faces overwhelming queues of orders particularly in the weekends. Accordingly, the business co-owner is contemplating on various ways of coping with this demand pattern. From the principles of demand and supply, price directly influences consumer behaviors. The fact Sunset Grill at Blue is strategically located and offers fresh, high-quality foods at affordable prices makes it a darling to many consumers in the Village at Blue Mountain. As such, the manager of this restaurant must make informed and judicious decisions to manage the demand.
Using Part-time Employees
Handling demand as it occurs is one of the most common strategies that managers in the restaurant industries consider useful. Currently, Sunset Grill at Blue restaurant receives more demand during weekends and winter periods. Part-time labor pools may provide an effective way of coping with the high demands in the peak periods (Wolfgang M., 2012). Presently, the servers are inundated with demand to the extent that they are unable to deliver ready foods to other tables. As such, it is meaningful to hire part-timers to help in providing direct services from the kitchen to the tables. It is worth noting that the entity should understand the belief that managers hire due to high demand, not because of high profits. Responding to the demand requires good judgment of the situation. According to Joseph C. (2014), hiring and full-time employments have their benefits and drawbacks. For purposes of keeping the cost of running an entity at minimum, hiring is an appropriate option. Notably, hiring a part-timer will enable the entity to gauge the worker before considering employing on full-time basis. Theoretically, part-time workers may be more committed to learn and deliver.
Service Supply Chain
Demand refers to the quantity that buyers are will to pay for at a particular price. Whenever the supply is lower than the demand in the service industry, long queues occur. It is, therefore, important to adjust the supply level to match the demand. In theoretical terms, high demand should naturally impose pressure on prices. Nevertheless, the company has not contemplated on increasing the prices to help in balancing demand level.
Recommendations
Balancing demand and supply in the service industry is quite challenging. It is irrefutable fact that failure to deal with the problem of queuing at Sunset Grill at Blue may cost the franchise its customer base. Although the restaurant is enjoying a high customer base, it is necessary to come up with various ways of managing queuing. Based on the analysis and review of secondary sources, this paper provides various recommendations. Hiring part time workers to assist during the peak periods will significantly help in reducing queues and lowering customer waiting time. According to Joseph C. (2014), hiring is more cost-effective than full-time employment when handling peak demand backlogs. As such, the manager should consider hiring as probable means of managing peak demands.
Secondly, developing complimentary services is another way through which Sunset Grill at Blue can manage the queues. Complimentary services will make the patrons find waiting time not to be too cumbersome. While customers experience the bottlenecks in the operations during the peak times, having an alternative service such as sitting in a lounge with a cocktail other than queuing may be more comforting. As such, the restaurant manager may consider creating a waiting lounge.
Conclusion
Managing demand at Sunset Grill at Blue remains a significant challenge. With a large customer base, the pace of service delivery at the restaurant is far below the order placement. On weekends for example, the staff may have over 40 orders in waiting. As such, waiting time for consumers and queuing is an issue of concern. There is a need to enhance service efficiency in order to retain the customers. As noted in the case, some consumers resort to other places for meals to avoid wasting time queuing at Sunset Grill at Blue. Precisely, the business manager should consider part-time hiring and alternative services such as lounge to help in managing the queue.
References
Carroll B. (2011). Demand Management. Hoboken:http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCIQFjAA&url=http%3A%2F%2Fscholarship.sha.cornell.edu%2Farticles%2F253%2F&ei=60h6VLz4HsL3avTugZgJ&usg=AFQjCNGjuh0IiEBFvwQ7Xdx4NllASF-nWw&sig2=eN1u7p-zLbhJf6y9MwCJdQ: Cornell University School of Hotel Administration.
Hwang J., G. L. (2010). Joint demand and capacity management in a restaurant system. European Journal of Operational Research: doi:10.1016/j.ejor.2010.04.001, 465–472:https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0CDgQFjAD&url=https%3A%2F%2Flonggao.files.wordpress.com%2F2014%2F08%2Fjoint-demand-and-capacity-management-in-a-restaurant-system.pdf&ei=bUt6VIqCGZLUasyvgZgI&usg=AF.
Joseph C. (2014). Small Business: Part-Time Employee Vs. Full-Time Employee. Houston Chronicle , pp. http://smallbusiness.chron.com/part-time-employee-vs-full-time-employee-2585.html.
Wolfgang M. . (2012). Service Management Managing Capacity. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CC4QFjAB&url=http%3A%2F%2Fiss.uni-saarland.de%2Fworkspace%2Fdocuments%2Fdlm-8_managing-capacity.pdf&ei=i0p6VM6SBozKaOv-gOAC&usg=AFQjCNEu63CkrYhB0xVwd19SFeiXBWH7pQ&sig2=s7XL: Saarland University.
