OPERATIONS MANAGEMENT CASE STUDY ON CHINESE RESTAURANTS

H aidilao Hot Pot Location: Wujiaochang Cuisine: Hot pot Price range: mid (~ yuan)

Haidilao Hot Pot

Gongfu noodles video

H airuilin Dream Restaurant Location: Tongjixincun Cuisine: Sichuanese Price range: low to mid (~ yuan)

Hairuilin Dream Restaurant: Dishes

How Are The Operations Controlled? About customer

How Are The Operations Controlled? About restaurant(haidilao) Morning Prepare (food,fruit,Wash vegetable,make seasoning and so on) Open(10:30) When customer coming, Two waiters to serve you. the cook cuts the meat into dish when Customer order it. If the fruit and seasoning is finished, they will add Immediately First,Waiters deliver the pot, then they deliver dishers from kitchen(no more than5 mins) Waiters collect the payment and take money to reception Close(03:00) Clean the restaurant, pour out the the remaining food, Calculate the finace.

Distribution Center 7~8 distribution center in china,spread in Beijing, Shanghai,Xian and Zhengzhou. Technology support from Management of consulting company. Having REP system to make the supply chain more efficient. Supply Chain Management Depend on the demand of each store to product food. Accurate demand information and quickly respect. Standard quantity and quality. Logistics and distribution Centralized distribution mode Keep the food safety Reduce the cost Supply Chain

Process flow-vegetables if qualified Operations Management Presentation_Group 2

D IFFERENT BETWEEN TWO RESTAURANTS…

What do the restaurants sell? Sichuan food : Variety of foods Haidilao : Hot Pot Operational differences Capacity Staff size Technology - Hot Pot requires tables Food preparation Flexibility 1 2

Main Operational Differences Capacity Haidilao : ~50 tables / 350 customers Sichuan food : ~30 tables / 100 customers  Haidilao is more flexible but requires more staff  On the other hand, Sichuan food has removable & separable tables which increases flexibility Haidilao Sichuan food

Food preparation Haidilao Hot pot foods cooked by customers on the tables  Haidilao’s tables need to be equipped with stoves (technological difference)

H OW ARE PROCESS CONTROL

A dministration The Owner Assistant Manager is the person responsible for the business in general is the person who operates the restaurant for the owner Operations Manager manages the office and business aspect of the restaurant, is responsible for Human Resources (including payroll), financial and taxation documentation Kitchen Manager Control Kitchen Operation

M anagement Control (cont’d) R estaurant manager has the day-to-day control The owner doesn’t usually interfere with the management unless something goes wrong R estaurant manager & assistant manager responsible for financial issues Control for example the employees’ working hours K itchen manager has the primary responsibility and control for food quality

How To Ensure Quality? 1. Keep food fresh and safe Throw away unused raw material everyday Select suppliers strictly 2. Standardization of food Weigh or measure each food portion for accuracy Uniform-sized package 3. provide food timely to consumer Food Quality 1. Staff management Treat staff like family Great promotion channel High salary Subordinate-centered style leadership 2. Employee training Select excellent employees to train newcomers Service Quality

SUPPLIER PRE- PROCESSING FOOD RESERVING CHECKING THROW AWAY NOT GOOD MATERIAL NOT GOOD MATERIAL GOOD MATERIAL COOKING TABLES WAITERS COMMUNIC ATING WAITERS COMMUNIC ATING CHECKING How To Ensure Quality? Food Control Chain

Thank you for attention !