Operation Management Analysis: Benihana Restaurant Performance

This report presents an analysis of operational management decisions within a simulated restaurant environment, specifically referencing the Benihana restaurant. The student explores the impact of various decisions, such as batching strategies, table sizes, dining times, and advertising budgets, on key performance indicators like throughput and profitability. The analysis includes an examination of how different operational decisions influence each other and the theories that underpin optimal strategies. The report assesses the outcomes of different scenarios, highlighting the importance of aligning operational choices with customer behavior and market conditions. The student reflects on the learning process, identifies areas for improvement, and discusses the application of operational management principles to enhance restaurant performance and profitability.

Operation Management

Table of Contents
Question 1........................................................................................................................................1
What decisions produced your highest throughput?...................................................................1
What decisions produced your highest profit?............................................................................1
Question 2........................................................................................................................................2
How did one set of decisions influence the others?....................................................................2
What theory underpinned your optimum strategy?.....................................................................2
REFERENCES................................................................................................................................4
.........................................................................................................................................................4

Question 1
What decisions produced your highest throughput?
Stimulation test of restaurant is consisted of total 6 challenges. In initial phase, there were
attempted total 1 to 5 challenges which were available for practise in order to understand actual
relation of operation management over profitability and loss of restaurant. In every challenge,
there were numerous of options that impacts upon profitability of restaurant like opting no
batching which is helpful in enhancing profitability. It can be said that there are numerous of
factors which influences operational performance of restaurant. In context to Benihana
restaurant, in the stimulation test decisions were made on the basis of different timing of
restaurant opening which impacts upon whole operational practices. Other factors like batching
type, budget timing, shuffle timing of restaurant etc. impacts upon operational performance.
Along with this, decision made to choose table of 4 to 8 was based on thought of excessive
crowd which prefers to visit restaurants and other eating places with their family and friends. In
addition to this, chosen timing for dining was also not effective for Benihana restaurant. These
decision impacted negatively as a result this strategy resulted in loss. Because combination of
overall operational activities of the restaurant should minimise the impact of all bad wrong
chosen factors but due to mismatch combination of chosen time for dining and non suitable
option of table number have increased loss ratio (Bradford and et. al., 2014).
What decisions produced your highest profit?
Over my experience I have evaluated that usage one strategy which was successful in
gaining profit might not work in future. In the initial stage I have used no batching which states
that customers will be seated at dining area according to their strength that means total number of
people. Further in this I have chosen runs at the left hand side of the test, while choosing it my
main strategy was to select maximum number of profit without loosing much customers.
Though, my starting strategy was effective and shown that I will be profit but my other chosen
option related to dining time, number of seats for the bar and dining area, budget for advertising
campaigns, opening time of restaurant etc. have created the scenario of loss for
restaurant(Spisák, 2012).
According to my experience of online stimulation test, I have analysed that my decision
of choosing the number to table for dining that is tables of 4 to 8 was not somewhat wrong
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instead of this if I would have chosen Table of 8 would have been best according to the timings.
As my personal evaluation it can be said that my peak timing of footfall is between 8pm to
10:30pm that is family time. In this most of the people prefers to visit restaurant and other eating
places. If I had selected table of 8 people then it will be helpful for me to sustain more visitor as
they will be able to sit together with family members. As a result, it will be helpful in increasing
profitability of restaurant.
Question 2
How did one set of decisions influence the others?
It has been evaluated by me that my chosen decision related to opening time for batching
type was correct but my strategy for selecting number appropriate number of seats for dining was
not effective as a result it was not sufficient according to the dining time (Pantielieieva and et.
al., 2018). I have observed that if I would have selected more number dining seats for customers
then there were probable chances of positive result that is profit instead of loss. Along with this,
it can be said that it was important for me to extend the time of dining hours for customers as it
will be helpful in enhancing interest of customers over restaurant. As customers will be able to
spend more time with belonging ones can also enjoy their outing (Zhu and Huang, 2013). It will
be fruitful in retaining customers with the help of their pleasurable experience.
In addition to this, it was required by me to extend budget of advertisement as in order to
opt good medium of advertisement practices it is important to have high amount of available
funds which can be used in choosing best suitable advertisement practices (MAIXÉ-ALTÉS,
2018). As a result customers will be more aware of about services and variety of food product
which are offered by restaurant. I have also analysed that time is also considered as main factor
in the growth as well as profitability of restaurant. In order to make restaurant profitable it is
important to increase maximise time limit for customers. So that they can spend more time while
their visit and can also enjoy their outing with family. Enhancement of dining time is also helpful
in retaining customer for longer duration as they can remember the time which they have spent in
the visit.
What theory underpinned your optimum strategy?
According to overall experience of mine, I have understood that operation management is
not simple thing which can be learned in single attempt. In order to understand the concept
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deeply, it is essential to practice more and more (Losonci and Demeter, 2013). I will enhance my
knowledge on same concept through more attempts of online stimulation test so that desired
result can be achieved by me that is profit of the restaurant.
It can be said that my overall strategy that is opting profitability at the initial phase as I
was focusing on maximising my profitability by observing that minimum number of customers
must be loosen so that restaurant do not go with loss phase. I can also grab my knowledge on the
real operation management by taking some training session from external institute. This will be
helpful in enhancing experience which can be further in used in future (Van den Berg and
Pietersma, 2015). In relation to this, I can also learn through some other sources that secondary
data and some books which shares real life experiences of people who have gone through same
kind of phase.
Result of online test
Run Profit Lost Cust. Scenario Name Nightly Profit Total Revenue Revenue Bar
Revenue DinnerBar SizeDining Time (Open to 7pm) Dining Time (7pm to 8pm) Dining
Time (8pm to 10:30pm) Advertising Budget Advertising Campaign Restaurant Opening Time
Batching Type (Open to 7pm) Batching Type (7pm to 8pm) Batching Type (8pm to
10:30pm)
Scenario 5 -$397.20 $1,787.15 $40.65 $1,746.50 15 60 minutes 48
minutes 60 minutes 1 Happy Hour 7:00 pm None 4 share a table Tables
of 4 to 8
Scenario 4 -$298.71 $2,430.82 $76.82 $2,354.00 15 60 minutes 46
minutes 60 minutes 1 Awareness 6:00 pm None 4 share a table Tables
of 4 to 8
Scenario 3 -$298.71 $2,430.82 $76.82 $2,354.00 15 60 minutes 46
minutes 60 minutes 1 Awareness 6:00 pm None 4 share a table Tables
of 4 to 8
Scenario 2 -$298.71 $2,430.82 $76.82 $2,354.00 15 60 minutes 46
minutes 60 minutes 1 Awareness 6:00 pm None 4 share a table Tables
of 4 to 8
Scenario 1 -$109.17 $2,927.33 $639.83 $2,287.50 55 60 minutes
60 minutes 60 minutes 1 Awareness 6:00 pm None 4 share a table
Tables of 4 to 8
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REFERENCES
Books and journals
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Service.
Hartley, R. F. and Claycomb, C., 2013. Marketing mistakes and successes. Wiley.
Lantos, G. P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. Routledge.
Losonci, D. and Demeter, K., 2013. Lean production and business performance: international
empirical results. Competitiveness Review: An International Business Journal. 23(3).
pp.218-233.
MAIXÉ-ALTÉS, J. C., 2018. The Digitalization of Banking: A New Perspective from the
European Savings Banks Industry before the Internet. Enterprise & Society, pp.1-40.
Mowday, R. T., Porter, L. W. and Steers, R. M., 2013. Employee—organization linkages: The
psychology of commitment, absenteeism, and turnover. Academic press.
Pantielieieva, N and et. al., 2018, May. Digitization of the economy of Ukraine: Strategic
challenges and implementation technologies. In 2018 IEEE 9th International
Conference on Dependable Systems, Services and Technologies (DESSERT)(pp. 508-
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Rose, R. and Pulizzi, J., 2011. Managing Content Marketing: The Real-World Guide for
Creating Passionate Subscribers to Your Brand. BookBaby.
Spisák, J., 2012. TRANSFORMING THE RAW MATERIAL INDUSTRY THROUGH
DIGITALIZATION AND INFORMATIZATION. International Multidisciplinary
Scientific GeoConference: SGEM: Surveying Geology & mining Ecology Management.
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Van den Berg, G. and Pietersma, P., 2015. Key management models: the 75+ models every
manager needs to know. FT Press.
Zhu, Y. and Huang, Z. F., 2013. Application of virtual reality technology on digital scenic spot.
In Applied Mechanics and Materials (Vol. 333, pp. 702-706). Trans Tech Publications.
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