Comparison Of Operational Strategies Of KFC And Hard Rock Cafe

KFC, as a fast food restaurant brand

Identify two restaurant brands – one of which should be fast food.

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Compare and contrast their styles of operation. Why do they operate the way that they do and what specific customer needs are they designed to meet?

The operational management of procedures and principals involved to have an effective food and beverage management system. The study of food and beverage management system provides an in-depth clarification on operating budget, menu pricing, managing menu, supplier and purchasing selection, labor cost control, cost-volume-profit analysis, managing successfully the quality standardization of service, computer application. These steps of process in food and beverage management system are used to critically evaluate the operation type of commercial food service, to understand the involved steps in management process. Even it examines all the aspects of cost controlling and budget managing, it also applies the good managerial practices in accounting to understand their uses the management of food and beverage. Knowledge of computer is also in use to control and track the operations held the process of the food and beverage operation.

KFC UK continues with growing as a brand with having strong expanding estate and sales. Over the past 10 years, KFC gained the double profit, in 2004 their annual sales have went over £500m, and now they are close to be a £Billion brand (Academia.edu, 2015).

KFC stands 3rd one in the UK s chain of fast food has signed up for foods containing calorie.

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KFC have few secretes of recipe, where KFC is using 11 kinds of spices and herbs, which become strong trade mark of yummy recipes. KFC stood 1st among all the chains of chicken restaurants due to have its original recipes, varieties in menu (Business, 2015).

There is huge growth in the sale of KFC as the consumers consider white meat as healthier than other one (Slideshare.net, 2015).

KFC believes in the smile of all the employees, which is concluded in their stage program, which denotes (Kfcdevelopment.co.uk, 2015):

  • Don’t lean, Stand up straight.
  • Must turn to face the customers.
  • Must act according to the customer’s requirement.
  • Greet customers as a friend.
  • Face customers with having eye-contact.
  • KFC is the first brand, who gained the visibility form space.
  • KFC closed up world’s largest LOGO (The Huffington Post, 2015).

 Hard Rock brought the thought of the “experience economy” to the business operation held in cafe. This incorporated the fresh “experience” into its operation. This innovation motion is somewhat stepping into mass customization in the area of manufacturing. At Hard Rock, The concept of experience provides not only the custom meal; it also provides the dining event which includes a unique sound and visual experience, which is duplicated nowhere in the world. With succeed of this strategy other theme restaurants have come and gone along the way, but the Hard Rock keeps growing. According to Prof. C. Markides – “The trick does not lie through playing the competition, but to focus on the development. This allows playing a totally different game”. Hence Hard Rock is playing that Experience game (Ukessays.com, 2015). From the first opening of this cafe in London, 1971, now Hard Rock cafe has 40 U.S. locations, near about count of a dozen in Europe and the rest is scattered across the globe (Catalogue.pearsoned.co.uk, 2015).

Services involved in corporate advisories: · Development on the cafe. These include- advice on cafe designing, advice on site selection, access for the approval of the vendors, contractors, consultants.· Operations take place, such as- Access for approval of the suppliers and manufacturers, operational supply budget advice and purchasing equipment (Euromonitor.com, 2015).Services involved giving additional corporate issues:· Services, additionally included, such as, planning for the grand opening, marketing, promotion and sales issues.· Planning program for the pre-opening phase, such as, budget planning.· Coordinator for the pre-opening. ·Central services, such as panning for the business (Ukessays.com, 2015).Training:· Approval of important personnel and training for on-site pre-opening.Advertising and Marketing:· Pre-opening advertising, Global advertising, cooperation with the advertising program for the Franchises. Standards:· All time maintenance of corporate standards. Auditing schedule and assigning operating supervisor. Obligations:· One must be highly obliged as a franchisee being abided by the given guideline, which are included but not limited for the continuous operation. Merchandise:· There should be Merchandise organization and have the access for the approval of the vendors (Dol.govt.nz, 2015).

Package for bar and kitchen

$ 250,000

$ 350,000

Varies according to number of floors, bars and kitchens selected.

Security and fire system

$ 30,0o00

$ 50,000

Varies in focus of requirement of local code

Point of Sale and Computer system

$ 100,000

$ 125,000

Varies accordingly upon importance of duties.

Accounting fees

$ 10,000

$ 15,000

Varies according to jurisdiction and country.

Sales and marketing

$ 50,000

$100,000

Pre-opening cost

$ 200,000

$250,000

Fluctuation of cost depends upon location

Fees for legal issues

$ 25,000

$ 75,000

Varies according to jurisdiction, country and licenses laws.

Furniture

$ 50,000

$ 80,000

Varies according to the number of selected seats

Signage

$ 40,000

$ 125,000

Varies in response to comply with the local rules and restrictions

Fees for Real Estate Brokers

$ 15,000

$100,000

Varies due to jurisdiction and country

Total

$2,995,000

$4,910,000

Conclusion:

In this modern era, Food and Beverage service, where the food made in the kitchen and drinks are prepared in bar for the customer or the guest. Franchisees of these restaurants are also serving people across the globe with their new advent of recipes budget management, which allows people to manage their test according to their budget.

References

Academia.edu, (2015). Service Quality Gaps: For Food and Beverage Service Division in Jordanian Hotels. [online] Available at: https://www.academia.edu/4994042/Service_Quality_Gaps_For_Food_and_Beverage_Service_Division_in_Jordanian_Hotels [Accessed 26 Feb. 2015].

Business, I. (2015). International Business. [online] Academia.edu. Available at: https://www.academia.edu/794452/International_Business [Accessed 26 Feb. 2015].

Catalogue.pearsoned.co.uk, (2015). Pearson – Introduction to Food and Beverage Operations. [online] Available at: https://catalogue.pearsoned.co.uk/educator/course/Introduction-to-Food-and-Beverage-Operations/91098076.page [Accessed 26 Feb. 2015].

Dol.govt.nz, (2015). Food and beverage service sector productivity study. [online] Available at: https://www.dol.govt.nz/er/bestpractice/productivity/researchreports/foodbeverage/ [Accessed 26 Feb. 2015].

Euromonitor.com, (2015). Fast Food in the United Kingdom. [online] Available at: https://www.euromonitor.com/fast-food-in-the-united-kingdom/report [Accessed 26 Feb. 2015].

Ireland, K. and Ireland, K. (2015). Digital Marketing Executive. [online] LinkedIn. Available at: https://uk.linkedin.com/jobs2/view/11952098 [Accessed 26 Feb. 2015].

Kfcdevelopment.co.uk, (2015). Why choose KFC?| KFC Development. [online] Available at: https://www.kfcdevelopment.co.uk/why-choose-kfc/ [Accessed 26 Feb. 2015].

Slideshare.net, (2015). food and beverage assignment. [online] Available at: https://www.slideshare.net/gyanireddy/food-and-beverage-assignment-8613383 [Accessed 26 Feb. 2015].

Slideshare.net, (2015). Kfc Research Analysis. [online] Available at: https://www.slideshare.net/imctommyb/kfc-research-analysis [Accessed 26 Feb. 2015].

The Huffington Post, (2015). How The Double Down Went Global. [online] Available at: https://www.huffingtonpost.com/2013/03/11/yum-brands-international-product-strategy_n_2814360.html?ir=India [Accessed 26 Feb. 2015].

Ukessays.com, (2015). Critically Evaluate The Operations Management Strategy Of Hard Rock Cafe Business Essay. [online] Available at: https://www.ukessays.com/essays/business/critically-evaluate-the-operations-management-strategy-of-hard-rock-cafe-business-essay.php [Accessed 26 Feb. 2015].

Ukessays.com, (2015). Operations Management Strategy Of Hard Rock Cafes Tourism Essay. [online] Available at: https://www.ukessays.com/essays/tourism/operations-management-strategy-of-hard-rock-cafes-tourism-essay.php [Accessed 26 Feb. 2015].

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