through the Case study provided

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Description: Students are required to read through the Case study provided below and provide answers to the questions. Feedback: Comments and a mark will be returned to you within one week of submission. The marking guide below will be used to provide you with your grade and summary feedback. Case study: ‘s Baggers – Restaurant of the third dimension ‘s Baggers® Restaurant opened its doors in the town of Nuremberg, Germany in April 2007. A 107-seat restaurant, with plans to expand its capacity by opening a beer garden by mid- September 2007, it has been labelled by the press as the first fully automated restaurant in the world (although it still uses some waiting staff). The restaurant does not require as many service staff as customers order via touch screen electronic point of sale (EPOS) at their tables, enabling a more efficient service and reducing labour costs. The concept High quality of food at low prices Freshly prepared scrumptious dishes cooked with high quality ingredients using minimum fat and a focus on organic produce, offering excellent value for money. Patented technology Delicious meals and drinks ordered per touch screen are transported on special metallic tracks directly to the guests at the table, simply with the help of gravitation The German Patent office granted the Assessment Information COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B. patent for the transportation system in June 2007. ‘s Baggers® has also applied for the patent in Europe and USA. Due to the high labour cost saving potential of the technology, the restaurant concept could be very interesting for fast-food restaurant chains and the operation is currently developing franchising and licensing concepts. Restaurant software The state-of-the-art information technology offers an incredible increase in comfort for the guests who can get detailed information about food, suppliers, concept, at a touch of a button. Waiting times are minimized and there is no queuing for food. The EPOS technology enables the restaurant to operate a loyalty bonus scheme as well as offering bonuses to customers who evaluate the menu and recommend the restaurant to their friends. There is also the added bonus that effective advertising as customers can recommend the restaurant to friends utilizing a word of mouth marketing supported by information technology. One thousand five hundred of the loyalty cards (or Friend Cards) were distributed in the first four and a half months of the restaurant’s operation. By allowing clients to evaluate the whole concept the restaurant has constant feedback enabling it to constantly monitor and evaluate the quality of its food and service. Restaurant characteristics ‘s Baggers® is in all respects a Franconian restaurant: Franconian food presented in Franconian dialect (with translation). The whole concept is based not only in the system efficiency but also enabling customers to have fun and a totally different experience. An interview with the inventor and owner, Michael Mack Interviewer: Michael, how did you hit upon the idea? Michael: I have always been an enthusiastic cook. Whenever I had a dinner party I was rushing from the kitchen to the dining room. So one day, I thought it would be so much easier if the food slipped along to the guests on its own and so the idea was born. Combined with my experience as a former iron foundry manager I decided to re-invent the traditional restaurant and start a new generation of restaurants by developing this invention which helps us increase efficiency and comfort substantially and cut costs nevertheless. To realize such a concept you need state-of-the-art service and information technology. Interviewer: So how does the system work? Michael: Well, the customer orders their drinks and food from a computerised touch screen at their table. There are one or two such screens per table. The customers can choose from a variety of delicacies – such as organic beef in buttermilk or sausages with Kraut – all regional Franconian specialities. There are pictures and descriptions of the dishes. Those screens are linked to the kitchen where the chefs put the orders on the rails straight from the oven. The dishes are then delivered to the customer’s table on metallic rails. They are gliding down from the kitchen which is located on the upper floor, just by means of gravity. When the food and drinks arrive, they have a colour attached to them which corresponds to the seat so you know who’s food is who’s. Interviewer: Do the customers like it? Michael: Oh yes! They just love it. It is quite difficult these days to get a table in the evenings. So you should ring early to get your reservation! Another evidence for enthused customers is the number of recommendations the customers can place from the touch screens at their tables: On average we get 90 recommendations a day. Also we offer a customer loyalty card (which we call ‘Freundekarte’ meaning card for friends). It offers all kinds of benefits for our customers such as a bonus system, an Assessment Information COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B. optional newsletter or the possibility of direct debit of the restaurant bills at the end of the month. In the first four and a half months 1,500 guests have subscribed already. Interviewer: What if someone has a problem with their order – Is there a person to deal with it? Michael: Definitely! Apart from technology and high quality food another part of the concept is a very high level of comfort for our customers. So there are waiters in our restaurant. But they only do tasks that are for the well-being of our guests. They do not have to take orders or run from the kitchen to the diners. They are there to ensure a friendly atmosphere, to welcome the guests, to answer the questions, to help with problems (to clear the dishes) and so on. Interviewer: What are the future plans for the restaurant – Will there be more of them in other cities? Michael: We are currently working on both a franchising system and a licensing concept. We have had enquiries from Germany, Europe, Canada, Australia and even Korea for franchising and we hope that we can soon open another’s Baggers® Restaurant somewhere else. In addition to that, the patent for the restaurant system has been granted for Germany and we have applied for the patent in Europe and North America. So we can now also sell licenses to use the transportation system for food and beverage, which by the way is so delightful because of its simplicity: dishes are sliding down to customers just by means of gravity. Due to an enormous cost saving potential in the labour costs – you could run the restaurant with a minimum of service staff – this restaurant concept must be very interesting for the major restaurant chains. An average fast-food restaurant could save about €250,000 in overheads per year by adopting the concept. Acknowledgements The Authors would like to thank the team at ‘s Baggers® Restaurant for their time and the information they provided for the creation of this case study. For more information visit www.sbaggers.de Case study questions: 1. Discuss the unique selling point of the ‘s Baggers® Restaurant. 2. Perform a SWOT (strengths, weaknesses, opportunities and threats) analysis for the ‘s Baggers® Restaurant technology. 3. Discuss your views of the concept as a potential customer. What are the things you like about the concept and what are the things you may dislike? 4. Discuss the views of the concept idea as a manager. What are the things you like about the concept and what are the things you may dislike? 5. Describe three consumer trends that are likely to affect mid-market restaurant operations in the next five years. 6. Using the Hospitality Operating Cycle of Control, describe, evaluate and make recommendations for improvement within ‘s Baggers restaurant taking into consideration the menu, product flow and facility design.

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