Amanda Restuarant Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

The case Amanda’s Restaurant was a business idea where she decided to make a diversification into another business where she decided to open a restaurant with a focus on nutritious and healthy food. Previously, Amanda West had been a part of Cisco Systems and the Sun Microsystems but now she is looking to diversify into another business. She wanted to enter into a business where she could serve the social and environmental needs of people. To actually fulfill her dreams, Amanda West decided to go back to have a degree in business management.

Company Background

Amanda West was the sole owner of Amanda’s Restaurant where she had the vision of opening a business with environmental and social mission. To actually fulfill her idea and her approach, Amanda decided to enter into fast food restaurant business with a focus on providing healthy and nutritious food to the customers. The tagline for the restaurant was “feel good fast food” and the focus of the management and the West was to stay determined and aligned towards providing quality food. The first branch of Amanda’s restaurant was initiated in Shattuck Avenue, which was considered as a place for innovation. West hired Aaron Boveshen of the Culinary Edge as the Head Chef. The menu was designed after exploring different options where West decided to calculate the calories, carbohydrates, the fat proportion in every meal and all the vitamins and minerals in each meal. Amanda also hired 26 individuals initially and an Assistant Manager leads them.

Key Competitors

The key competitors for Amanda’s restaurant are the various fast food chains operating in the country. Some of the main competitors for West and her restaurant where local fast food chains such as KFC, Hardees, McDonalds, etc. The competitors were serving meals that took less time to prepare and that was the unique selling proposition of all the fast food chains in the city. However, none of them were with the vision of serving healthy and nutritious, fast food, therefore they were not really the direct competitors for Amanda’s restaurant.

Financial Performance

The financial performance of the Amanda’s restaurant was steady and consistent until the first two years of its operations. Amanda in the initial two years paid from her pocket, after which she drew a 20 percent salary being the CEO. To start the business Amanda acquired money from friends, family and angel investor which raised a capital of $700,000.

Problem Statement

As the case depicts, Amanda’s Restaurant enjoyed significant success in the initial two months of its operations, however, after that the kitchen required adjustments and tweak to inventory holdings. Along with this, the restaurant wanted additional funds also to overcome high food costs. Customer feedback has also been harsh after the initial two months, which calls to the restaurant to come up with better and improved inventory holding system.

Analysis

After going through the case and analyzing the problem identified in the case it can be said that the restaurant has been facing the issue of inventory holding where the customer have been given harsh and negative comments about the overall operations and service at the Amanda restaurant. To overcome the situation, Amanda West is looking for a better option and a solution where they can satisfy the customers to the best of their efforts and look to entertain them with healthy and nutritious food every time. Amanda West is therefore keen to overcome the inventory holding issue and kitchen adjustment where the quality of food and its freshness is maintained with every meal.

Current Inventory and Kitchen management issues

While analyzing the case, the issue that is identified in the Amanda Restaurant is of inventory holding and the kitchen adjustment. The practice of order fulfillment at Amanda restaurant is that the waiter presents the customer with the menu of a variety of burgers and combos available in the restaurant. He then takes the order from the customer and takes the order to the kitchen where the order is listed down by the chef. The chef then takes the order to the inventory stock area where the chef presents the order to the team designed to look after the order ingredients and requirements that will be essential and necessary in completing the customer order.

The person responsible for the inventory check informs the chef about the availability of different ingredients, spices, meat, vegetables, beans, sauces, etc. that will be required in completing the customer order. This has been a regular practice at the restaurant and the management has been following the practice since the start of the restaurant two years back. Once the inventory check is completed, the chef is informed about the ingredients and gives a green signal that the order can be completed as per customer’s requirements which then allows the chef to prepare the meal with his team (M. Hammer, 1993)......................

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