Question

Question 4

The owner of Line Restaurant implemented an expanded menu early last year. The menu was a success, drawing many more customers, who seemed to like the increased variety of menu choices over that of the previous menu. But good news soon became bad news as long waiting lines began to deter customers, layout does not meet the new demand requirements, and business dropped off. Because of space and other limitations, there didn’t seem to be any viable options to consider.

Q5.1) Describe what approach might this restaurant use to solve this issue and why that could be expected to reduce waiting times.

Q5.2) What costs would be involved in transitioning to such a system?

Answer 1

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The mass customization involves providing standardized services or goods, while incorporating some degree of customization. The mass customization may be applied at the Eat Now restaurant by streamlining and standardizing the operations such that it becomes more efficient and faster to serve the customers while trying to maintain as many of the menu options as possible However, there is a trade-off between standardizing the services and maintaining the menu options The restaurant can use delayed differentiation as a tactic in reducing service and thus waiting times. In other words, the service crew can prepare the basic meal and leave off some of the options and the options would be added after the customer places the order This approach will result in substantially reducing the service and waiting time while maintaining as many of the menu options as possible In making the transition, the employees have to be trained in designing and performing the delayed differentiation, which will result in increased cost for the company. However, preparation of some of the menu items may not lend themselves very well to mass customization. Hence, the management has to be very careful about which menu items it includes in the mass customization effort. After deciding on which items to mass customize. then the management has to decide whether to carry the items in its menu that could not be mass customized This decision involves the trade-off of additional service time and the resulting waiting cost vs. the opportunity cost of lost sales for not having the item on the menu The opportunity cost of lost sales for not having the item on the menu is very difficult to estimate because once the person is in the restaurant, it is very likely that they will order something However, a limited menu may constrain future demand.

ALTERNATIVE ANSWER:

Mass customization is a popular technique used in many industries where their end products lend themselves to being modular in nature. Examples of this would be software companies where customized products are nothing but an amalgamation of many standardized modules. Or in the case of pre-fabricated homes where different modules like bedrooms, bathrooms, kitchens and the like can be put together to assembly a complete house. In the case of a restaurant it would be very difficult to apply this principle of mass customization. This is especially true since this restaurant has been getting an increase in its clientele due to the increase in the variety in its menu. Having a great variety in the products is contrary to the principles of mass customization.

However in this situation the only option is to have a standardized buffet meal during the lunch and dinner rush hours with a menu being varied on a daily basis. They could have a selection of entrees, mains, side dishes and desserts. Since these would be the standardized for that day, the serving times would be reduced and having a buffet means that table service is avoided, other than having to clear the soiled plates after each course.

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