Breakfast at the Paramount Case Study Solution
Utilization of Tables and Cycle Time of Eating
The utilization of 100% seems realistic because of the limited number of 44 seats that can be utilized fully due to the fact of long waiting lines outside the restaurants.If the table are less than 100% utilized then the average time of eating would increase, because people will take longer time to finish their meal once they see that tables are available for the customers waiting in lines, and they can finish their meal normally with comfort.
Bottleneck of the System
If the tables of the restaurant are utilized 80%, the bottleneck appears to be fulfilling a drink order, which takes maximum time to serve one customer i.e. 45 seconds.
Customers Served per Hour by Paramount
The assumption of utilizing 80% tables is that the customers per hour served by the Paramount Restaurant would be 29.26, because the tables will be available for the customers, and the average serving time of orders, drinks and payment would remain same.
Traditional Table Service
If the restaurant use traditional table services, the efficiency of serving the customer will be reduced,because it will take longer than average time per turnover of table i.e. 19 minutes due to the fact that the waiting time will then also be added to the 19 min, which is the average turnover time for a table.
How Customer Experience the Paramount
The consideration of M/M/1 queuing formula indicates that the arrival rate is greater than the service rate of Paramount restaurant, which means that the servers need to work more than 100 percent, in order to serve the arrival of customers. Moreover, it can also be said that the servers create a bottleneck for the restaurant, which leads to increase the serving time for the customers.
Paramount Specialty
The specialty of Paramount Restaurant is the quality of breakfast provided by the restaurant, which compels the customers to visit numerous time, due to the quality and the variety of items in their menu. Hence, the long waiting lines are also looked after by the Paramount Restaurant by serving orange juice in summer, and hot chocolate in winters to the customers at the end of the line because these customers wait in long lines to collect their meals due to the seating policy of the restaurant.
Waiting in Line
Waiting in line must not be a good experience for the customers,especially when the customers are hungry then the waiting becomes more painful. To make this waiting less painful, Paramount Restaurant has adopted a policy of serving orange juice and hot chocolates to the customers waiting in long lines.
Advice on Increase in Carryout Orders
Carry out orders will be served short while after the orders will be received, which will increase the waiting time of customer waiting and will make them, to wait furthermore in long lines, because when the carryout orders will be received; the orders of the customers waiting in line at the restaurant will be stopped, and the carryout orders will be fulfilled. However, it can be considered as injustice because people who wait in line to place the order much before the carry out orders should be served first. Furthermore, it will be frustrating for the customers who would wait in long queue or line, which could hurt the hungry customers, and results in low visitors’ arrivals at the restaurant.
The carryout orders are served in the paramount by delaying the orders of the customers who wait in long line for their breakfast to be served. However, the increase in delaying time by fulfilling the carryout orders will increase the time of the line more, which will affect the customers’ tolerance for waiting in line and receiving the order. Michael Conlon should serve the carrying out order the same way as the orders of customers who wait in long lines are severed, for example if there are 15 customers waiting in line, and the carry out order is received by the restaurant, then the restaurant should serve that order by first serving the 15 customers who are waiting in line. This process will also not hurt the profit generated by the sales of the customers who wait in long line, and it will let the carryout orders to be fulfilled and delivered at the same time, which will let the carryout customers to join the line and wait for their order if they arrive at the restaurant.
Increasing Carryout Orders
The increasing carry out orders could affect the sales revenue generated by the restaurants through serving the regular visitors of the restaurant. Moreover, the carryout order also appear to be the bottleneck for the visiting customers,because due to the carryout order, visiting customers has to wait longer to wait for their turn to get served. Hence, the increase in carryout orders will increase the serving time of the visiting customers.
Customer Reaction if the Line become Slower and Longer
If the line becomes slower and longer, the customers will balk and renege i.e. they will leave the line or not join the line for breakfast. Furthermore, the customer will get attracted towards other restaurants if they see that the line is consistently slow for days because of the increase in the carryout orders. Hence, the increasing of carryout order would shift the customers to the substitutes, which will result in the loss of visiting customers for the Paramount Restaurant.
Conclusion
The in-depth analysis of the case enables to determine the acceptance and admiration of the breakfast served by the Paramount Restaurant. The customers wait in long lines for the meals. Interestingly, the one of its kind seating policy also enables the restaurant to serve the maximum number of people unlike the traditional table strategy where the table turnover ratio appears to be high, because the waiting customers also occupy the tables before order. Hence, the major issue of carryout orders is analyzed, which will affect the visiting customers and increase the time of serving for them. This major concern that needs to be addressed is the increased waiting time of the customers in long queues for placing their orders, because it will create frustration in the customers who are the regular visitors of the restaurant, and could result in the loss of the regular, returning or potential customers for the restaurant. Hence, Michael Conlon should adopt such strategies that can minimize the time of serving the visiting customers, and also enables the restaurant to cope up with the carryout orders that will enhance the revenue streams for the restaurant, which is considered as the major factor for the increase in carryout orders...............
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