Operations Management Analysis and Strategies for Hard Rock Cafe

This report provides a detailed analysis of the operations management practices at Hard Rock Cafe. It begins with an introduction to operations management and a company description of Hard Rock Cafe, followed by an examination of its goals and objectives. The report then delves into the different aspects of operations management at Hard Rock Cafe, including its goals and objectives, operations strategy, contribution to competitive priorities, order qualifiers and winners, and customer focus. It then explores various operational processes such as product and service design, quality management, layout strategy, location strategy, supply chain management, and inventory management. The report also discusses Hard Rock Cafe's expansion strategy and future plans, including environmental changes and changes in operations management. The report concludes by highlighting the factors behind these changes, such as increased competition, changing consumer preferences, and emerging markets. The report provides a comprehensive overview of Hard Rock Cafe's operational strategies and their impact on the company's success.

Running Head: OPERATIONS MANAGEMENT 1
Operations Management: Hard Rock Café

OPERATIONS MANAGEMENT 2
Table of Contents
Introduction......................................................................................................................................3
Company Description......................................................................................................................3
Goals and Objectives of Hard Rock Café....................................................................................4
Different Aspects of Operation Management..................................................................................4
Goals and Objectives...................................................................................................................4
Operations Strategy......................................................................................................................4
Contribution to competitive priorities..........................................................................................5
Order qualifiers and winners........................................................................................................5
Customers.....................................................................................................................................6
Operations Management at Hard Rock Cafe...................................................................................6
Effective product and service design...........................................................................................6
Quality Management....................................................................................................................7
Layout Strategy............................................................................................................................7
Location.......................................................................................................................................7
Supply Chain Management..........................................................................................................8
Inventory Management................................................................................................................8
Increase in the capacity of hotel...................................................................................................9
Vertical Integration......................................................................................................................9
Expansion Strategy....................................................................................................................10
The Next Five Years......................................................................................................................11
Environmental Changes.............................................................................................................11
Changes in Operation Management...........................................................................................11
Factors behind Changes in Operations Management.................................................................12
Increased Competition............................................................................................................12
Changing consumer preferences and demands......................................................................12
Emerging Markets..................................................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
Operations management is the process, which includes various processes and activities, which
are related to the development of goods and services via conversion of inputs into outputs. It is a
significant process for any organization, whether it is in service industry or manufacturing
industry. Under this process, each and every organization needs to create an operations strategy
that is used as a long term plan for utilizing its key resources to establish compatibility between
organizational resources and corporate level strategy of the company. It includes different
practices of a firm, like; product and service design, quality management, supply chain
management etc.
For this discussion, the organization that is taken into consideration is Hard Rock Café, which is
situated in United Kingdom. This report consists of various aspects of operations management
regarding Hard Rock Café. It includes performance goals and objectives of the chosen
organization. Under operation management process, it includes the goals and objectives, order
winners and qualifiers and contribution to competitive priorities. Furthermore, it comprises of
different processes of the organization, which are required to transform the inputs into effective
outcomes. Furthermore, there is the discussion about why the company needs to change its
operation management and operations strategy over the timeframe of next five years.
Company Description
Hard Rock Café is a food service organization that is mainly dedicated on running casual dining
restaurants. It was found in London in the year 1971 and it is headquartered in Orlando, Florida.
The organization has established its business through a themed restaurant concept. At the
restaurant, the guests and customers are welcomed with a great ambience. Till December 2015,
Hard Rock group has covered 59 nations, which include 23 hotels, 168 cafes and 11 casinos.
Currently, Hard Rock Café is one of the largest restaurants in the world. Hard Rock Café is the
best example of effective operations management process (Clark, 2014). The success of firm is
linked with its effectiveness in implementing the practices of operation management and
personnel management, like; wait staff, kitchen staff etc. The company is adopting various
operation strategies, which are assisting the organization in converting its goals and objectives in
tangible processes and outcomes (Hard Rock Café, 2017).

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Goals and Objectives of Hard Rock Café
The mission statement of Hard Rock Café is “to develop realistic experiences, which rock”. The
major goal and objective of the company is to serve its guests or customers by providing them
quality food services, so that it can satisfy its potential customers and increase its customer base.
The organization considers its customers as a driving force. The operations at the firm are very
effective, efficient and managed ethically. It is primarily focused on maintaining higher quality
standards.
Different Aspects of Operation Management
Operations management is significant for each and every business, but at Hard Rock Café, it is
important to offer the customers unique and exclusive dining experience, which they desire. It is
the best example, when it comes about the operation management (Anderson, Anderson and
Parker, 2013). The organization is serving a huge customer base by managing its business
operations effectively. There are various aspects of operations management, which need to be
considered here. These aspects are stated below;
Goals and Objectives
Operation management is necessary for an organization to enhance its business operations. Hard
Rock is continuously planning to improve its operations and services, so that it can increase its
revenues. At this café, the major objective behind operation management is to establish the
operations, which satisfy the corporate objectives and minimize the issues and problems causing
inefficiency.
Operations Strategy
Operation strategy refers to the approaches, which are used by an organization to attain its
business objectives. By creating effective operation strategies, a firm can scan and adopt efficient
and effective processes for utilizing people, resources and other systems (Aviv, Lariviere &
Terwiesch, 2009). As a leader in the food industry, the company changes its operations strategy
time to time to fulfill the needs and demands of customers. It has designed its operations strategy
to become a part of globalized economy and attain the goals. Hard Rock Café has increased the
competitive advantage by creating exclusive advantage against its competitors. Under its
operation strategy, the major focus of entity is on differentiation. Thus, they provide the unique
services than other food companies. In managing its operations, the company is going through

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various processes, like; quality management, layout strategy, location strategy, process and
capacity design, service and product design and supply chain management. Thus, the operation
strategy at Hard Rock Café is very effective than its competitors. It is enhancing its operations by
adopting different operations strategy (Barney, 2014).
Contribution to competitive priorities
Competitive priorities are the operational dimensions, which are possessed by a process to fulfill
its external and internal customers. Competitive priorities assist the firm in establishing better
course of actions for selecting the process. At Hard Rock Café, the major competitive priorities
are quality of food, innovation and flexibility. Offering high quality food has allowed the
organization to become one of the biggest restaurants in the world today. By implementing
innovative practices, Hard Rock Café makes its customers able to experience and unique things
(Baregheh, Hemsworth and Rowley, 2014). This firm owns its restaurants and cafes in different
countries. By owning these stores all over the world, flexibility has enabled the firm to sustain
diverse customers, which they serve to. Their major competitive advantage is to make emphasis
on effective interaction between guests and staff that is something Hard Rock Café practices
which makes it different from its competitors in the industry. By identifying its competitive
priorities, it can be stated that Hard Rock Café has an effective and responsive operations
management (Beske, Land and Seuring, 2014).
Order qualifiers and winners
Order qualifiers are the criteria, which an organization must meet for the customers by
considering itself as a potential supplier. They need to be as good as their competitors. Moreover,
order winners are the criteria, which win orders. In this, the organizations require to become
better than its competitors. At Hard Rock Café, higher quality standards can be seen as important
order qualifiers (Brandenburg, et al, 2014).
Order Qualifiers at Hard Rock Café:
 Quality of food
 Packing time
 Hygiene
 Take Away services
Order Winners at Hard Rock Café:

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 Unique menu and taste of food
 Location of restaurant and café
 Layout and ambience
 Opening and closing time of restaurant
 Wide range of food products in the menu
Customers
Hard Rock Café is targeting the customers by considering different characteristics of market
segmentation, like; cultural, social etc. The customers of this organization are from the upper and
medium class and working class with same taste and preferences. The company is growing a
generation of rock and roll fans and finally a culture of fashion, fad and music lovers. The
customers go there to hang out with their family and friends and for their music love to relax and
enjoy soft music and bands. The customer base of this restaurant is very wide and includes the
people different class and income level (Brown, Bessant & Lamming, 2013).
From these operations management practices, Hard Rock Café is expecting to become biggest
restaurant all over the world. The company can fulfill its company and strategic objectives of the
company. The operation strategy and other practices will assist Hard Rock Cafe in transforming
the inputs into tangible resources and outcomes. As Hard Rock Café is a service organization, so
these practices will help the company in delivering the services in effective manner. By
delivering effective services, it will be able to increase and retain its customer base.
Operations Management at Hard Rock Cafe
At Hard Rock Café, the operations management process has been implemented effectively. The
company is going through different processes for managing its operations. It is practicing
different strategies for translating the goals of organization into tangible processes and outcomes.
These exclusive practices are aiding the company in attaining sustainable customer base and
expected results (Fitzsimmons, Fitzsimmons and Bordoloi, 2008). The processes and strategies
of the Hard Rock Café are stated below;
Effective product and service design
Hard Rock Café is implementing effective product and service design to maintain the Hard Rock
ambience and brand image. Managers at organization evaluate different characteristics of target

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market segments and make minor changes to their food and restaurant services. Till now, the
services of the organization continuously follow the brand image and reputation of Hard Rock
Café (Franks, et al, 2014).
Quality Management
One of the most important strategies of operation management at Hard Rock Café is quality
management. At Hard Rock Café, offering the food products is the major service and quality is
on the top of the charts. The menu and quality of food is reviewed on regular basis by the
operations department. In the process of operations management, setting quality standards and
monitor to fulfill the standard requirements is the key to success (Geraghty, 2013). This café is
very successful when it uses its tangible product, i.e. food like a medium to provide exceptional
dining and entertainment experience, i.e. intangible products. Customers are satisfied with the
exclusive sound and visual experience that cannot be imitated anywhere. The café implements
quality management by sustaining a quality evaluation role for the operations managers. The
operations managers utilize the quality standards of organization to recognize the weaknesses
and issues. After assessment, required changes are implemented to safeguard the compliance.
Layout Strategy
The restaurants, cafes and casinos of Hard Rock Café have different requirements for layout. The
operation managers of organization implement effective layout design for efficient flow of work
in the restricted space that is available in the premises. It is also an important layout strategy at
Hard Rock Café. It is generating long term competencies through optimal layout. The major
objective of layout strategy is to enhance a beneficial and efficient layout, which can attain the
competitive needs of the company. At Hard Rock Café, layout approach provides an effective
flow among the dining areas, kitchen and bar and decreasing the waiting time and transportation.
The layout strategy of this organization is assisting in making the operations smoother (Heizer &
Render, 2014).
Location
Hard Rock Café makes decision on location of the business on the basis of industry and market
analysis. The organization adopts market research to determine if the industry can aid a Hard
Rock Café. Market statistics are utilized to decide on if spreading the company through extra
locations of Hard Rock Café is realistic (Hill and Hill, 2012). Location consideration can make

OPERATIONS MANAGEMENT 8
the business strategy and it is the long term decision for the company. When this café makes
decisions regarding a new location, it implements a decision making process and applies a search
to the country and city. To choose a right and appropriate location, the café begin with a global
view and consider various factors, like; social factors, currency risk, political risk, social costs
and brand fit by conducting market research. The company is aiming to the locations in Latin
America, Europe and Asia. All the stores of Hard Rock are not operated by itself and they are
franchised due to economic challenges, such as; exchange rate, inflation and political risks may
influence the development and growth of company (Kafetzopoulos and Gotzamani, 2014).
Supply Chain Management
At Hard Rock Café, the decisions regarding supply chain management are made on the basis of
market demand, different suppliers and costs of managing inventory. This process is
implemented by the location and operations managers. Under this process, this firm has
discovered international resources to attain maximum beneficial through supply chain.
Outsourcing is the most famous method for big scale organization, like; Hard Rock, which is
implementing this process. By effective supply chain management, the company is having
various advantages, like; saving the costs and improving the level of services (Jacobs and Chase,
2013). The organization has selected qualified vendors and suppliers to ensure the fresh and
quality meals. In the year 2003, this firm had announced the participation of Avicon, i.e. the
architect of new supply chain and offered expertise in the supply chain and logistics for Hard
Rock Café. It let to the realistic results, where the space for warehouse in North America was
declined 44%, decreased the operational costs by over 20%. Furthermore, the selection of menu
item depends on supply the appropriate amount of contents and food ingredients on qualified
vendors in timely manner (Kimes and Wirtz, 2015).
Inventory Management
Organizations implements inventory management decisions by using inventory management
software and techniques. The operation management at Hard Rock Café utilizes fluctuations in
demand and past records to estimate the changes, which are required in the inventory. Then, the
inventory is managed accordingly. For any organization, inventory is very expensive asset. Hard
Rock Café has invested a huge amount in the inventory. In this process, the major objective of

OPERATIONS MANAGEMENT 9
the company is to create balance between customer services and investment in inventory and by
processing effective software and techniques, like; POM, OM etc. Inventory management assists
the organization in managing the raw material and other related materials, which are needed in
manufacturing process at Hard Rock Café (Kuznetsova, 2015).
By using these processes Hard Rock Café converts its above-mentioned goals into tangible
outcomes. Making these decisions helps the organization in managing its operations effectively
and successfully.
There are so many practices at Hard Rock Café, where it is exceptional and different from its
competitors in food industry. The operations management practices at Hard Rock Café will lead
towards its desired goals and objectives. It will enable the organization to attain positive
outcomes. Below-mentioned are some of elements, which are evaluated while Hard Rock Café
implements its operations management. These are the components, where it is exceptional and
how the operations management of Hard Rock Café delivers on the strategy (Lelieveld, Holah
and Napper, 2014).
Increase in the capacity of hotel
As per the past records, Hard Rock Café has shown over the past years, it intensely indicates that
currently the organization has a large capacity. Managing the capacity is very important for
executing the operations at in hotel and hospitality industry. With the 30 years of Hard Rock’s
existence, this has enabled to have many cafés, casinos, hotel, live music places and Rock fest
concert. Due to its increased capacity, the organization is considered to become one of the
biggest players in the service industry, which has employed 75% of population of United States.
The unique operation management strategy of making sure that the company enhances its
capacity and this has expanded all over the nation with more than 40 locations in different cities
in United States (Martin, 2008). Operations strategies of the company made them able to serve a
food capacity of 100,000 meals on regular basis. Its expanded capacity can be noticed by looking
at its growing locations in several nations across the globe. Via its growing capacity, the café has
been ranked among top ten cafes all over the world and enjoying over 90% brand identification.
Below given process flow diagram indicates the food system at Hard Rock Café;

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Vertical Integration
Vertical integration is a style of macro-economics and management, which should be adopted by
any business organization. This is used where by diverse firms in supply chain is integrated via a
single owner to provide specific services to make sure that needs and demands of the customers
are fulfilled. At Hard Rock Café, there are different types of customers, like; tourists, who are
coming from foreign nations. According to the consumer statistics of Hard Rock Café, 70% of
the customers at Hard Rock Café are the people from different nations. By considering this, the
company has implemented vertical integration approach by ensuring that they have included
traditional meal of different places for satisfying the guests from different nations. Statistics
indicates that this café has expanded to 40 nations internationally, therefore it require ensuring
that it has vertical integration approach (Nahmias and Cheng, 2009). The sales of the company
are managed from headquarter to make sure that company is offering diversified food in its
menu. By using this strategy, the company is having intensive growth and made the place in the
list of top restaurants in the world.
Expansion Strategy
Each and every company starts its business with the objective of making profits. Hard Rock
Café has used this operations strategy by choosing a location wherever it can expand its business.
It makes sure that organization makes a better decision to ensure that the investment has made
for long term benefits. Under this expansion strategy, the company considers different factors,
like; political risks, social risks, currency risks, competitors, business practices, laws and
regulation in that particular location etc. This firm practices an expansion strategy that is multi-

OPERATIONS MANAGEMENT 11
domestic strategy. Under this strategy of operation management, this café is confronting some
challenges, but it has made a contingency plan to deal with these challenges and issues (Patel and
Deshpande, 2015).
Thus, the above-mentioned strategies and processes will assist the organization in gaining
competitive advantage over its competitors in the industry. During these processes, it will be
focusing on above-given competitive priorities, i.e. quality, flexibility and innovation. Operation
management has enabled the organization in having a better position in hotel and hospitality
industry in United States and other countries. These strategies of operation management assist
the organization in attaining better revenues in the competitive business environment. It enables
the company is attaining its business and performance objectives, operational capabilities,
operational processes and they can be seen in its back office support and other operations. In this
way, it can be stated that operations management at Hard Rock Café is the most effective
operation management in the food and restaurant industry (Slack, 2015).
The Next Five Years
Environmental Changes
In the future, it can be seen that organization needs to make the changes in its operation
management according to the changes in the organizational environment. Environmental changes
are very important for any organization, as it affects its business largely. There might be different
reasons behind the changes in organizational environment. There are some external and internal
factors, which may force Hard Rock Café to implement the changes in organizational
environment. The external factors are like; political, social and economic factors. Internal factors
of the organization may be like; work force development, changes required in food menu,
innovation, cultural practices and ethics etc.
Hard Rock Café will implement the changes in its organizational environment to deal with the
cultural and language differences. The customers are reaching at Hard Rock from different
countries, so its needs to hire the staff from different regions and provide them training about
new culture and languages. They have to make sure that they are able to unite diverse cultures
with others (Singhal & Singhal, 2012).
If the company plans to expand its business in new location or country, so it needs to comply
with the laws and regulations of that new country. There may be some political concerns, which

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are needed to consider in the future. For managing a hospitality organization, it is very important
to consider employment and workforce requirements and management. They are the most
important asset for the business. So, they require to be appreciated and need to be rewarded via
monetary and non-monetary programs (Smith and Offodile, 2014). These rewards will motivate
the people to accept the environmental changes at hard Rock Café and they will work for
attaining the goals and objectives of the organization. If the country will not accept and
implement these changes in the future, it will impact the growth and success of Hard Rock Café.
Changes in Operation Management
After considering the above given changes, Hard Rock Café needs to make changes in its
operations management to fulfill new requirements of organization. It will make changes in the
above-mentioned practices and processes, which will beneficial for the organization in the future.
Under this change process, the company needs to revise its goals and objectives. It will set some
effective and attainable marketing objectives, which will lead the Café in increasing repeat
intention of customers, brand loyalty and huge profits and revenues. Before making expansion in
other countries, Hard Rock Café will conduct a market research, in which it will find out all the
changes that are required in the policies and regulations of business. In supply chain, it will
contact to the suppliers, who provide the raw materials with higher quality on minimum prices.
Layout and process decision, location of site and capacity are the major components, which need
to be considered as a primary part of operation management and strategic management. The
changes, which will be made in the operational management of the organization, will be
beneficial for Hard Rock Café and its business operations. After implementation of change, the
operations of business will be run in an effective manner (Smith, Maull and CL Ng, 2014).
Factors behind Changes in Operations Management
Generally, this is stated that operations management of a company needs changes over a time
frame, i.e. next five years. After considering the environmental changes and changes in the
demands and preferences of customers, it needs to make changes in its business operations
(Nahmias and Cheng, 2009). In next five years, the company may face some issues, which may
force Hard Rock Café to implement changes in its operation strategy and other operational
practices. These components for Hard Rock Café are stated below;

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Increased Competition
Competition is one of the major factors, which drives changes in the operations management at
Hard Rock Café. The restaurant and hotel industry in the country is very competitive and Hard
Rock Café is facing intense competition from its leading players (Triguero, Córcoles, and
Cuerva, 2013). There are so many players in the industry, which are providing similar products
and services and decreasing the existing market share of Hard Rock Café. The market share of
this café is in saturation phase currently. In the food and restaurant industry, new players are
entering with new food menu and unique services and number will be increased within next five
years. The company should make changes in its operations and adopt some innovative practices
to stay competitive in the industry.
Changing consumer preferences and demands
Changes in the demands of customers are also affecting the growth on business in today’s
business environment. In the food industry, it is very important to consider the changes in the
needs and expectations of customers. In the future, Hard Rock Café needs to make changes by
looking at the market trends and consumer preferences. For example, people are becoming health
conscious today, so they prefer to eat healthy food at cafes and restaurants. This café should
make the changes in its operations and cook the food with healthy ingredients. They require
hiring new chefs at their restaurants, as customers demand the food with different tastes. At Hard
Rock Café, the people are coming from other countries, so it will hire the chefs and staff from
other countries also, so that they can offer their traditional food and taste (Triguero, Córcoles,
and Cuerva, 2013).
Emerging Markets
In today’s business environment, each and every company is planning to go global and expand
its business in emerging markets. They think that it will be profitable for their growth and
success. Under this component, the company needs to adopt new and effective expansion
strategy. It should choose an effective and efficient market entry mode, so that it can establish its
business in emerging market (Patel and Deshpande, 2015). The market entry modes may be,
such as; joint venture, franchise, partnerships etc. Thus, by making changes in its operations
management, the company can enhance its business processes and practices in the future.

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Conclusion
It is hereby concluded that Hard Rock Café is one of the biggest cafes in the world. The
operations management of the organization is effective as compared to its competitors. There are
various operational processes and strategies, which are used by the organization for enhancing its
business operations. Furthermore, the report includes some factors, which are forcing the
organization to make some changes in organizational environment. By looking at the changes, it
will transform its operations and processes. For this, it can upgrade its existing practices and
processes or introduce new policies. At the end, it includes some components, which force the
organization to make changes in operational management in future.
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