Operations Management in Fast Food Industry

Running Head: OPERATIONS MANAGEMENT
Operations Management

OPERATIONS MANAGEMENT 1
Contents
Introduction......................................................................................................................................2
Established and Emerging Consumer Value Propositions within the Fast Food Industry..............2
Process Map of the Order Fulfillment Process of a Fast Food Restaurant......................................3
Application of Manufacturing Excellence on Fast Food Chains.....................................................5
Relationship between Profitability and Quality of Service.............................................................6
Current and Potential Operational Challenges in the Fast Food Industry.......................................7
Recommendation for Improving Service Operations......................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

OPERATIONS MANAGEMENT 2
Introduction
Fast food is the mass- produced food which is designed for the purpose of commercial resale
where strong priority is placed on the speed of service as compared to the other relevant factors
in the culinary science. Fast food restaurants are considered to be different due to their ability of
serving the food via a drive- through (Davis, Lockwood, Alcott and Pantelidis, 2018). The
outlets may be kiosks or stands, where no shelter or seating may be provided or quick service
restaurants known as fast food restaurants. There are a pool of organizations in the fast food
industry namely McDonalds, Subway, KFC, Dominos, Nandos, Hungary Jacks (Burger King),
Red Rooster, etc. the application of operations management in the fast food industry provides the
premium service at the minimum possible prices.
The focus of this report is on the fast food industry and the related consumer value proposition,
order fulfillment process, manufacturing excellence, operational challenges and
recommendations.
Established and Emerging Consumer Value Propositions within the Fast Food Industry
Consumer value proposition can be defined as the total benefits which are promised by the
vendor and are received by the customer in return of the associated payment. In other words,
customer value proposition offered by the fast food restaurant differentiates it from its
competitors (Payne, Frow and Eggert, 2017). These are the set of unique offerings and benefits
that are offered to the customers. In Australia, the market share of McDonalds is the largest
among the quick service restaurants. The customer value proposition of McDonalds include
convenient locations, consistent quality menu items, efficient and fast service, in- store facilities
and comfortable seating, good pricing and value offering distinct products, and a large range of
choices which are suitable for different age groups. Almost all the fast food restaurants are
currently following the same customer value proposition for the purpose of maintaining its
significance in the market. In other words, these factors have become the established consumer
value propositions within the fast food industry (Mathe- Soulek, Krawczyk, Harrington and
Ottenbacher, 2016).

OPERATIONS MANAGEMENT 3
However, in order to stand out in the market, emerging value propositions are required to be
taken into consideration by the restaurants operating in the fast food industry. This will further
require launching new products and services that are coherent with the other offerings of the
restaurant (Mahadevan, 2015). This is to be done with the help of using the strengths of the fast
food restaurant that can attract the new segments of customers who have not earlier identified
with this chain. Along with the convenient locations, the new focus of these fast food restaurants
is on providing familiar tastes of the region in the fast food products. Moreover, they are also
promoting the perception of nutritional value in their offerings. This customer value proposition
has been initiated by Subway in the industry.
Process Map of the Order Fulfillment Process of a Fast Food Restaurant
The order fulfillment in the context of the fast food restaurants consists of a long process which
has been depicted in the form of the following process map (flow chart).