MONGOLS BBQ Case Solution
Problem Diagnosis
This case basically focuses on the operations of a limited menu restaurant which is located in West wood, California in the theater and the busy business district of this city. The restaurant is located on a walking distance of the University of the Los Angeles Campus; therefore, the management of the restaurant does not have issues with hiring part time workers for the restaurants. The owner of Mongols BBQ, Wai Ling Wang is now considering a range of options for extending the restaurant service and also increases the sales of his business.
There are basically two options which are being considered by him currently. One option is to basically start a delivery service. However, if he chooses to start a delivery service to deliver a value meal to its customers then he will have to consider a range of the operational issues such as how much people he will need to hire in order to deliver the food and how can the customer order and how to market the delivery service.
Currently, Wai Ling does not market the Mongols BBQ restaurant as this is the belief and the Mongols and they sell themselves, but for the delivery service to be successful, marketing would be necessary. Wai Ling has no experience in marketing; therefore, this issue will also need to be considered. On the other hand, the other option available to Wai Ling is to basically open up a new unit in the area and serve other customers. However, this would require a significant investment and also there would be certain issues associated with inventory management. The final recommendation needs to be made to Wai Ling on the basis of quantitative and qualitative analysis.
Analysis
All the areas associated with each of the two options have been analyzed in quantitative and qualitative terms before making a final recommendation for the most suitable option. First of all, the reasons for the need of either a delivery service or opening a new unit facility have been analyzed as follows.
Reasons for a Big Change
The main reason which has been stated by Wai Ling Wang for considering the expansion of the restaurant services in the Mongols style is that the current Mongols BBQ restaurant is very much busier on week days and there is higher demand than supply. However, there is no extra space available in the restaurant to fit in new chairs in order to accommodate more customers into the restaurant. Moreover, the customers are also not interested to take away the food and the most probable reason for this could be zero marketing by the management of the restaurant and Wai Ling.
Along with this, there have been many new restaurants that have been opened recently just within 3 blocks away from Mongols BBQ restaurant and their customers are interested in quite sizable take-outs. This has been the main reason due to which the owner of this Mongols BBQ restaurant has been considering a big change and currently there are two possibilities being considered by him;either to open a new unit downtown or add a delivery service to the current restaurant. Moreover, the students in this area now want more trendy concepts such as HaaganDaaz, Wrapp factory or the Starbucks..................
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