Operations Management in the Restaurant Industry

This assignment delves into the key principles of operations management as applied to the restaurant industry. It examines topics such as quality management, service operations, supply chain management, and strategic decision-making. Students will analyze how these concepts contribute to operational efficiency, customer satisfaction, and overall business success in the competitive restaurant sector.

Running Head: OPERATIONS MANAGEMENT 1
Operations Management and Service
Excellence

OPERATIONS MANAGEMENT 2
Table of Contents
Introduction......................................................................................................................................3
Company Description......................................................................................................................3
Key Operations Processes used by Organization............................................................................4
Quality Management....................................................................................................................4
Waste Management......................................................................................................................4
4Vs Analysis................................................................................................................................5
Five Performance Objectives...........................................................................................................7
Quality..........................................................................................................................................7
Cost..............................................................................................................................................8
Dependence..................................................................................................................................8
Flexibility.....................................................................................................................................8
Speed............................................................................................................................................8
Supply Chain of the Organization...................................................................................................9
Improvement to the Operations.....................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

OPERATIONS MANAGEMENT 3
Introduction
Operations Management is the process of administrating the business practices and processes to
develop the highest level of effectiveness and efficiency possible within a company. It is the
process that includes different activities that are relevant to the production of goods and services
via transformation of inputs into outputs. It is an important process for each and every company,
whether it is operating its business in manufacturing industry or service industry. Under
operations management, the companies need to develop its operation strategy, which is utilized
as long term planning for using the key techniques and resources to constitute the compatibility
between corporate level strategy and resources of the company.
The small scale organization, which is taken into consideration here, is Anise Restaurant that is
located at InterContinental Dubai Festival City in Dubai. This report includes the operations
management and its processes at Anise Restaurant. There is the discussion about different
operation processes, like; product and service design, quality management, Layout and Location
of the restaurant. Moreover, it includes five performance objectives, which can be applied to this
organization. At the end, it consists of supply chain of the company and there are some
recommendations for improving its operations management.
Company Description
Anise Restaurant is a beautifully designed, ice and fire themed and all day dining food outlet that
is located at InterContinental Dubai Festival City. At Anise, it offers eight live cooking stations,
which offer an interactive “chef to diner” experience to the customers that place them inside the
kitchen and provide multi-cuisine with tempting and delicious flavored dishes. The interior of the
restaurant is very attractive and specious and it also has a terrace overseeing the Festival Marina.
The restaurant also offers a very famous ‘spicy’ Friday Brunch. In addition to this, it offers
different choices of food to the customers and there will be live music, which is very enjoyable.
In addition to delicious food, the customers may have the unlimited alcohol and soft drinks for
AED 100. Although the company offers food from different cuisines that is cooked with fresh
products, but Friday Brunch is very famous (Anise, 2017). At Anise Restaurant, the international
arrangement of eight live cooking platforms will have the customers setting in a day of eating on

OPERATIONS MANAGEMENT 4
the highest quality of price. This is the perfect place for the people, who want to get their
weekends off to slower beginning.
Key Operations Processes used by Organization
Operations management is very important for each and every organization, but at Anise
Restaurant, it is significant to provide the customers exclusive and unique dining experience,
which is desired by them. Hotel and hospitality is the best example, when it is about the
operations management and its key processes. Anise is serving a huge customer base by
organizing its all the activities and processes (Aviv, Lariviere & Terwiesch, 2009). It is
implementing different operations strategies to manage all processes and provide effective and
excellent food services to its customers. This organization is consistently planning to enhance its
services for increasing its profits and revenues. At Anise, the major goal of operations
management is to develop the processes that fulfill organizational objectives and reduce the
problems, which may cause inefficiency in service delivery and excellence.
Key operations processes at Anise Restaurant are stated below;
Quality Management
Under operation management, quality management is the most important process for any
organization. At Anise Restaurant, providing the food items is the main service and quality is on
the top. The quality of food and food menu is reviewed on continuous basis by its operations and
service department. Under operations management, establishing food standards and monitoring
to satisfy the requirements of these standards is the major key to success of organization. This
restaurant is successful, as it utilizes its tangible and intangible products for excellent service
delivery, such as; delicious food as a medium to offer exclusive dining experience, ice and fire
themed ambience, live music and entertainment experience (Anise, 2017). People in Dubai are
very much satisfied with the unique visual and sound quality, which can’t be copied easily.
Moreover, this restaurant executes quality management by providing the quality analysis role to
the operations managers. At this restaurant, the operations managers comply with the quality
standards to identify its issues and deficiencies in the process. After evaluating the issues, the
managers implement the needed changes to comply with the food and quality standards.

OPERATIONS MANAGEMENT 5
Waste Management
Managing the waste is an important process for each and every business, as it effects their
spending and costs also. It includes all the processes and activities, which are needed to manage
the waste from its initiation to disposal. At Anise Restaurant, the management continuously
makes several efforts for food waste reduction (Chen, et al, 2017). Primarily, they are focusing
on its cooking activities at different stations that all the chefs are cooking food without wasting
the materials. It is avoiding the situation of over-purchasing of the stock and inventory and
storing the food appropriately. The organization has created a team of responsible persons, who
have their main focus on waste management only.
Currently, the organization is working with the waste management service provider to identify
the different ways to forecast different forms of recycling. For managing its waste materials,
Anise is using some effective waste management processes, like; recycling, reuse and final
disposal. It is also engaged in the environmental friendly activities and always seeks to find out
effective ways for enhancing the environment and its components. The organization is expecting
to stay in the clean atmosphere where the water and air are very clean (Farahani, et al, 2014). It is
significant to manage the waste for an organization because today’s population is very much
concerned about the environment and its components, like; air, water, earth etc. So, the
organization needs to make focus on implementing waste management practices to keep the
environment clean and it will assist the restaurant in attracting a large customer base towards its
hospitality and food services.
4Vs Analysis
All the processes of operations management have a common thing that they all take inputs, such
as; capital, knowledge, raw materials, time and equipment and convert them into considerable
outputs, i.e. products and services. To understand the operation processes, it is very necessary to
understand the four V’s, i.e. volume, variation, variety and visibility. These are very important
components for understanding the entire operations management of the organizations (Goetsch,
& Davis, 2014). The 4 V’s regarding Anise Restaurant is stated below;
The Volume Dimension
Volume dimension refers to the process how the products and services are prepared by
conducting business operations. At Anise, the volume of production of international food is very

OPERATIONS MANAGEMENT 6
high and prices are reasonable. The volume under operation management is the important for
managing the business and making it more profitable (Flynn, Huo, Zhao, 2010). At this
restaurant, another thing, which is very important, is the repetitiveness of the process because of
familiarity of the process and activities. The organization sets appropriate procedures and
standards in each and every part of operations. As Anise is a small scale and local organization in
Dubai, so sometimes it may have lower volume of results, less systematic, less labor and each
and every employee completes various tasks that can result higher costs to the restaurant.
The Variety Dimension
The variety dimension under this analysis refers to the wide range of the products and services,
which is offered by an organization. At Anise restaurant, the variety of food is wide; like; there
are eight live food cooking stations, which offers the customers international food. There are
different dishes from different area of the world (Heizer, 2016). As the variety of food products
is wide, so it will lead the restaurant towards higher unit costs, but the organization is able to
fulfill the specific needs and demands of a large customer base. In addition to this, the company
may face complexity in the transformation process to get final output. Thus, variety dimension in
operations is both advantageous and disadvantageous for the Anise Restaurant, Dubai.
The Variation Dimension
This dimension of operation management refers to the variations and changes in the demands of
the products and services of a company. Customer arriving at Anise Restaurant would find
whatever they desired from their 8 live cooking stations. It purchases the raw materials and
transforms into finished goods on the basis of past records of customer arrival. It utilizes past
consumer demand pattern with the passage of time. There may be variations in the demand of
food at the time of InterContinental Dubai Festival, as the people can overlook and enjoy the
festival and food together from the terrace of restaurant. Anise is able to provide customer
satisfaction by maintaining the process flows at the organization (Hollensen, 2015). Thus, it can
be said that variation is low at Anise restaurant, so unit costs are also lower and transformation
process is stable and routinely.
The Visibility Dimension

OPERATIONS MANAGEMENT 7
The visibility dimension refers to the ability of customers to look at and track experience through
the process of operations. A visit to Anise Restaurant will show that the cooking operations are
highly visible to the customers. As mentioned above, the organization offers eight live cooking
stations that provide interactive “chef to dinner” experience to the people, which place them in
the kitchen and offer international cuisine with delicious dishes and food. The things, which are
not visible to the customers, are the raw materials, raw inventory, ingredients and other supplied
materials. Thus, visibility is higher at the Anise Restaurant and the operations are totally exposed
to their customers. Under higher visibility, service perceptions play a vital role in the service
quality. Anise Restaurant ensures that the employees possess effective service skills as it greatly
impacts the experience of customers (Iden, and Eikebrokk, 2013). It is very important that the
organization manages all the dimensions under this analysis as they assist the organization in
effective service delivery and service excellence.
Five Performance Objectives
Performance objectives of an organization are what it uses to define what is right and acceptable
on the job. There are different measures, which are developed by the management of a company,
so that they can perform according to the guidelines for their objective to attain the standard
performance in each and every aspect of the organization. These objectives are established on the
basis of operations and activities, which are carried out in the company. By this, the company be
able to become more efficient in managing its operations. At Anise Restaurant, there are five
performance objectives, which are set by the organization (Jacobs, and Chase, 2013). These
performance objectives are, such as; quality, cost, dependence, speed and flexibility, which are
discussed below;
Quality
Most of the customers are seeing for the best quality, so each and every company wants to offer
quality and error free products for attracting the customers and gaining more competitive
advantage. Under this objective, the company creates some policies and actions in operations to
offer a service, which the customer desires. Anise Restaurant offers a variety of food products
with higher quality using fresh fruits and vegetables (Johnston, and Clark, 2008). It offers the
live cooking experience to the customers, means people can see their orders, while preparing by
chef. At Anise, the employees are well-trained to prepare food using specific processes. The

OPERATIONS MANAGEMENT 8
organization makes efforts to fulfill all the standards and ensures highest quality and freshness to
each and every customer. By providing the live cooking experience, this restaurant is able in
providing better customer satisfaction and increasing its customer base.
Cost
This performance objective, i.e. cost refers to the minimization of the costs of the operations and
processes that leads the organization to cheaper prices of products and services. The best manner
to reducing the costs is to emphasize on the needs and requirements of customers, which is
related to meeting the quality objective in operations and product and service design. This
process can eliminate the wastage and need of rework. Anise Restaurant is implementing an
effective cost strategy (Kaplan, 2009). It has developed a low cost supply chain system and
executed Just-in-Time approach, which declines the unnecessary costs of storage and wastage.
The organization can sell the food on comparatively lower prices as it does not include the costs
of food that is unsold. Thus, the organization has implemented a value meal strategy that enables
the customers to purchase the food from different cuisines at affordable price, when they
purchase in combo-pack.
Dependence
Dependability is one of the major objectives as many operations and activities are dependent on
other processes. So, attainment of each activity is essential for the completion of project on time.
The processes of an organization have to meet a committed service delivery time. Anise
Restaurant has a process for the consumers by serving the food on time (Liu, & Jiang, 2011). The
staff at restaurant is skilled and well-qualified, so they are able to deliver the services on time. It
is open on both weekdays and weekends. The food products are available any time in the day and
it offers a special food menu on Friday.
Flexibility
The next performance objective of an organization is flexibility that includes the elasticity of the
activities and change in the types of services, which are making its operations more flexible
according to the changes in the needs and requirements of the customers. At Anise Restaurant,
flexibility can be seen by looking at its food menu as it offers the meal from different regions. It
prepares the food by considering the needs and requirements of customers (Mason, et al, 2016).

OPERATIONS MANAGEMENT 9
Speed
Management of speed in the operations and processes is also necessary for completing different
procedures on specific time. This performance objective is about how long customers wait for
their service. Anise Restaurant has designed its processes very well, so that it can serve the food
to customers quickly. It has set the food preparation time for their menu items, so that order can
be served on time (Modi, 2017).
From the above five performance objectives framework, it can be analyzed that all the operations
objectives are interrelated with each other. It is very important for an organization to enhance all
the objectives simultaneously.
Supply Chain of the Organization
Supply chain network is a development of the fundamental supply chain of an organization.
Because of technological development and advancement, companies with the supply chain can
enhance this into a more difficult structure including a level of connectivity between more
companies. All these processes of supply chain create a supply chain network. An organization
designs the supply chain strategically to reduce the costs of its supply chain. The costs of supply
chain can be determined by the location of premises and production flow between different
facilities of the organization (Mok, Sparks, and Kadampully, 2013). Establishing a supply chain
network assists the organization in understanding the flow of raw materials, products and
services and information among different players in the supply chain management of the
organization, such as; distributors, suppliers, retailers, wholesalers and customers. Focusing on
the supply chain network allows the companies to look at the flow of information and materials
from the beginning to end of supply chain process. It creates value for the partnerships of the
companies with its internal and external stakeholders (Muysinaliyev & Aktamov, 2014).
In today’s competitive business world, it is significant to design an effective and highly efficient
supply chain network, so that it can manage all the processes and activities of supply chain and
logistics management. Especially, food organizations compete on the selection of the supplier for
providing best restaurant services to their customers. All the customers desire variety of menu
with the quality and freshness and want their ordered food faster (Najdawi, Chung, & Salaheldin,
2008). So, it is very essential to adopt an effective supply chain management process for

OPERATIONS MANAGEMENT 10
enhancing its service delivery process. When market and customer pressures pull these
restaurants in different directions, supply chain works as a platform for dealing with these
opposing threats to get the shared profits.
Anise Restaurant is establishing a domestic supply chain that supports its different locations of
Dubai. The organization implements supply chain diversification strategy for this area of
operations management. It assists the organization in getting more suppliers from different areas
for reducing the risks related to supply chain. The company is offering the food from multiple
cuisines, so company has multiple suppliers, who supply the raw materials for different type of
food menu. Under its supply chain, the organization is focusing on minimizing the costs of
inventory and aiding different operations of restaurants (Scarborough, 2015). It purchases the
ingredients from different suppliers and transforms them into finished products. Local
distributors in Dubai communicate with the managers of restaurant to provide and manage their
stock. The company has chosen the suppliers and vendors, who supply the quality and fresh
ingredients, so that they can serve fresh meal to their guests. Anise Restaurant is improving the
inventory management, working capital and operations by applying this supply chain
management process. It manages it’s all the menus and recipes, production processes, food items
and enables substitutes to ensure the consistency across its food outlets. Thus, Anise Restaurant
includes the improved supply chain management processes and activities to their food menu, so
that they can fulfill the hunger of customers for the best quality food at affordable prices (Slack,
Chambers & Johnston, 2009).
Improvement to the Operations
Operations management is an important function of an organization that deals with the
manufacturing and distribution of goods and services to the final consumers. It includes various
areas, like; supply chain management, logistics and transportation. An organization should use
highly effective and efficient operations management, so that it can eliminate the issues and
deficiencies in the services delivery and excellence. As a well-established restaurant in Dubai,
Anise restaurant should consider the issues, which are faced by the organization in the above
analysis. The volume dimension indicates that the company is less systematic, so it should
manage its business operations for running the business systematically and effectively. For this,

OPERATIONS MANAGEMENT 11
it should hire some more workers for effective allocation of tasks. It is very important for
increasing the productivity and revenues of the organization (Swink, et al, 2014).
The organization should implement effective strategies for managing its supply chain and
logistic operations. The restaurant is offering different variety of food, so there is the issue
related to higher unit costs, which may increase the prices of dishes or affect its revenues. It
should hire the chefs and cooks according to the types of cuisines at restaurant, so the services
can be rendered effectively by reducing the unit costs. For measuring its productivity, the
organization should set some standards, like; order fulfillment rate, delivery time rate and stock
out rate. These are the major components, which can assist the organization in measuring the
performance of Anise’s operations and processes (Tripathi and Dave, 2017).
In addition to this, Anise Restaurant is working for attaining its performance objectives, like;
quality and costs. The company should consider the fact that improving the quality may increase
the costs for organization. So, it should try to make balance between both the objectives. To deal
with the issues related to suppliers, it should limit its suppliers and work with the suppliers, who
meet with all the standards of quality, which are set by the restaurant. Furthermore, the
organization should conduct market research and try to understand the needs and wants of
customers towards the food products. It needs to become more innovative and creative, when it
adds new dishes in its food menu (Untaru, & Ispas, 2013). As it is a local restaurant in Dubai and
it does not have presence in foreign countries, so the restaurant should use advanced technology
in the business operations for enhancing the effectiveness and efficiency of service delivery. It
should make efforts to attain its performance objectives hat will assist the organization in gaining
overall objective of the restaurant, i.e. revenue maximization, profit maximization, cost
reduction, increasing market share and opening its franchises in different enraging markets (Yu,
et al, 2016).
Thus, by considering these recommendations, Anise Restaurant can improve its operations and
supply chain, so that it can deliver the food services with excellence. By doing this, it will be
able to expand its business operations to other countries.

OPERATIONS MANAGEMENT 12
Conclusion
It is hereby concluded that Anise Restaurant is operating its business in Dubai as a small
business corporation. The organization has managed its operations and services operations very
well. The above analysis concludes different aspects of the restaurant related to its operations
management and supply chain. It shows that company is using various processes under its
operations management, like; waste management, quality management and 4V’s Analysis
framework. Implementation of these processes is helping the companies in managing the overall
business and need and expectations of customers. Anise is effectively working for attaining its
five performance objectives, i.e. quality, cost, speed, dependability and flexibility. All of these
objectives are connected with each other and enhancing the operations of organization. In
addition to this, the report also includes supply chain of Anise Restaurant. However, the
organization is working effectively in Dubai, but it should make focus on expanding its business
to other markets. It will enhance its market presence and brand image in the restaurant industry
worldwide. By doing this, the organization will be able to transform itself into larger
organization.

OPERATIONS MANAGEMENT 13

OPERATIONS MANAGEMENT 14
References
Anise, 2017, Enjoy International Cuisine at Anise, Retrieved from
https://www.visitdubai.com/en/pois/anise.
Anise, 2017, Restaurant Details, Retrieved from
http://www.diningdfc.com/Restaurant-details/12/anise.
Aviv, Y., Lariviere, M. & Terwiesch, C., 2009, "Operations management", Management Science
Journal.
Chen, S.C., Chen, S.C., Raab, C., Raab, C., Tanford, S. and Tanford, S., 2017. Segmenting
customers by participation: An innovative path to service excellence. International Journal of
Contemporary Hospitality Management, 29(5), pp.1468-1485.
Farahani, R.Z., Rezapour, S., Drezner, T. and Fallah, S., 2014. Competitive supply chain
network design: An overview of classifications, models, solution techniques and
applications. Omega, 45, pp.92-118.
Flynn, B.B., Huo, B., Zhao, X., 2010, The impact of supply chain integration on performance: a
contingency and configuration approach,” Journal of Operations Management, Vol. 28, pp. 58-
71.
Goetsch, D.L. & Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Iden, J. and Eikebrokk, T.R., 2013. Implementing IT Service Management: A systematic
literature review. International Journal of Information Management, 33(3), pp.512-523.
Jacobs, R. and Chase, R., 2013, Operations and supply chain management, McGraw-Hill Higher
Education.

OPERATIONS MANAGEMENT 15
Johnston, R. and Clark, G., 2008. Service operations management: improving service delivery.
Pearson Education.
Kaplan, R. 2009. Measuring performance : expert solutions to everyday challenges. Boston,
Mass: Harvard Business Press.
Liu, S., & Jiang, M., 2011, Providing Efficient Decision Support for Green Operations
Management: An Integrated Perspective. INTECH.
Mason, K., Jones, S., Benefield, M. and Walton, J., 2016. Building consumer relationships in the
quick service restaurant industry. Journal of Foodservice Business Research, 19(4), pp.368-381.
Modi, A.A, 2017, Essentials of Operations Management, PHI Learning Pvt. Limited.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Muysinaliyev, A. & Aktamov, S., 2014. Supply chain management concepts: literature review,
Journal of Business and Management.
Najdawi, M. K., Chung, Q. B., & Salaheldin, S. I., 2008, Expert systems for strategic planning in
operations management: a framework for executive decisions. International Journal of
Management and Decision Making, 9(3), 310-327.
Scarborough, N.M., 2015. Entrepreneurship and effective small business management. Pearson
Higher Ed.
Slack, N., Chambers, S., & Johnston, R. 2009. Operations management. Pearson Education.
Swink, M., Melnyk, S.A., Cooper, M.B. and Hartley, J.L., 2014, Managing operations across the
supply chain (pp. 248-249), New York, NY: McGraw-Hill/Irwin.
Tripathi, G. and Dave, K., 2017. Exploration of service quality factors in the restaurant industry:
a study of selected restaurants in the New Delhi region. Hospitality Marketing and Consumer
Behavior: Creating Memorable Experiences.
Untaru, E., & Ispas, A., 2013, Why do young people prefer fast-food restaurants? An exploratory
study: Journal of Tourism, (15), 27-34.

OPERATIONS MANAGEMENT 16
Yu, Y., Wang, X., Zhong, R.Y. and Huang, G.Q., 2016. E-commerce logistics in supply chain
management: Practice perspective. Procedia CIRP, 52, pp.179-185.