Operations Management Report: Zumbar Coffee and Tea House Analysis

This report provides a comprehensive analysis of Zumbar Coffee and Tea House's operations management and service excellence. It begins with an overview of the organization, its location in Cardiff, UK, and its reputation as a boutique coffee roaster. The report then explores how operations management processes support the organization, focusing on key areas such as managing quality, process and capacity design, and location and layout strategies. The application of five performance objectives to Zumbar is examined, along with potential improvements. A critical discussion of Zumbar's supply chain is included, followed by a comparison of its quality processes with those of competitors. The report highlights the importance of operational efficiency, customer satisfaction, and strategic planning for the cafe's success in a competitive market. The report also points out the challenges like space constraints and the need for continuous improvement in areas such as menu offerings and customer service to maintain its market position.

Operations Management and
Service Excellence

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Overview of the organisation...................................................................................................1
2. Way in which operations management processes support the organisation............................2
3. Applying five performance objectives to the organisation and improvements that could be
made.............................................................................................................................................5
4. Critically discussing the supply chain of an organization.......................................................6
5. Comparing and contrasting the quality process of selected organization................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operational management can be termed as a set of procedures that a firm addresses to
perform all business activities in a systematic and effectual manner. In today’s era, for the
purpose of gaining smoothness in the flow of operations in the competitive scenario, to properly
define business operations is highly important for the management team of organisation with
analysing the market situation and overall condition of market. In accordance with the specific
structure of organisation, process of functioning must be conducted in such a way that strategic
excellence will be gained by the firm along with attaining the set targets of business in the long
run (Operations management: The input/output transformation model, 2016). In the present
report, there will be discussion on various concepts associated with operational management and
service excellence with reference to Zumbar Coffee and Tea House Café.
1. Overview of the organisation
Situated in Encinitas, Cardiff which is in Wales, UK, Zumbar coffee and Tea house is
known to be one of the best tea and coffee shops there. The café is well known and highly rated
in Encinitas, Cardiff that offers tea and coffee to the customers at a normal range of price that is
reasonable as well as affordable for the people residing there. The shops is known for offering
averagely priced team and coffee among rest of the others that are offering the same but at higher
prices. Zumbar coffee and Tea house usually gets opened early in the morning for clients and
this is one of the main reasons that play a significant role in attracting most of the tourists who
visit the shop. It is known as a boutique coffee roaster in Cardiff among the customers.
ZUMBAR is also having have a retail cafe in Cardiff (ZUMBAR COFFEE & TEA, 2016). As
this café, team and coffee with high quality is offered and this is the reason; the quality of the
beans they source and offers along with artisan approaches lead the shop to craft some of the
finest coffees. The café was found in the year 2003 and currently, among people residing in
Cardiff, it is known as a boutique coffee roaster that is having a retail café as well. The café on
usual basis mainly considers the artisan approach by which the finest coffees can be crafted.
In 111 Chesterfield Dr #115, Cardiff, CA 92007, United States at Cardiff, one of the
main branches of Zumbar Coffee and tea house is there. Main customer base of this shop at cited
place is mainly preferred by most of the teenagers and youngsters. It is because; these are the
people who generally want to spend their quality time with a cup of blend coffee and music.
Blends and single origin coffee are offered by the store for the purpose of preparing same at
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home. It is having a knowledgeable team which is always ready to help the customers. Shop is
having the total capacity of serving 10-15 customers. However, there always seems many people
who waiting in the queues outside the restaurant. By the same, it can be said that the cafe is
extremely popular in that particular area. Although, the café is earning higher profits and it is
well known but, there is one major issue, that is, very less number of people can be seated here
due to shortage of space. The number of services and facilities offered by the café are:
 A rich, buttery-sweet which is a full flavoured blend named Hummingbird - 12 oz.
 A roast that is bold and dark as well as rich and smoky named French Roast.
 For making the day/dream of people alive, café is offering herbal over stones, caramel
edge with spicy finish named Sumatra Manheling - 12 oz.
 Also, in a sweet, nutty and cocoa finish taste, Zumbar is providing Mexico Oaxana Pluma
Real - 12 oz.
 With floral finish as well as peach and sweet body, Ethiopia Amaro Gayo - 12 oz is
provided to the customers.
 Further, a blend of Indonesian & Latin coffees is also offered on the name El Mundo - 12
oz that is having El Mundo stages deep, heavy flavours of nut along with earth and
chocolate.
Zumbar Coffee and tea house is having the main advantage of high customer value and
thus, the restaurant is having high goodwill as well as brand image in the market that prove to be
highly helpful in making the customers attracted towards café. Main reason behind high
customer base is the trained employees and talented staff members by the quality services of
whom, customers are gaining high level of satisfaction as well as great experience. The major
rivalry firms of Zumbar coffee and tea house are Bird Rock Coffee and Living Room Coffee
House that are giving tough competition to the shop as they are also offering high quality coffee
and tea at reasonable cost. Therefore, firm should assess the market information in such a way
that competitive edge over others can be gained.
2. Way in which operations management processes support the organisation
Operations management is a highly important managerial aspect of business. It is
important for Zumbar Coffee and Tea House to assess the information with respect to market
situation. Also, for café, it is crucial to implement the plan of actions in a way that set aim and
objectives can be effectually achieved. In the firm, set of operations refers to the way in which
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business activities are processed in relation with addressing new customers as well as resources
are allocated for the purpose of performing operations. It also includes the ways in which
resources are utilised as the firm aims to make optimum use of the same so that at less cost,
maximum profits can be gained (Khamalah and Lingaraj, 2011). Under the operations
management processes conducted by Zumbar, it is being ensured that customers can be made
satisfied to the highest possible level so that they can be retained in the long run and café would
grow at a fast pace. Therefore, it can be said that the performance of organisational aspects with
references to operational activities are in string relation with the success and achievement of set
targets by café.
In order to grab the attention of target audience, operational management plays a vital
role so that demand of offered products and services can be increased and value in return of what
customers spent can be provided (Wodak and Meyer, 2009). For Zumbar, it is essential that the
management team of organisation can effectually address the best ways by which operational
functions of business can be supported and their execution, feasibility as well as acceptability
would become easy for the employees and other staff members. With the help of this, business
tasks can be performed and completes in a systematic and effective manner by which values and
desired form of objectives can be gained. In addition to this, it can be said that if performance of
team working in Zumbar would not be strategic and professional, achieving greater benefits
would not be possible in the long run (Yeadon-Lee and et.al., 2011).
Zumbar Coffee and tea house, Cardiff can be considered as the combination of restaurant
and café both. Here, the restaurant offers number of coffee and tea related products to the
customers with high quality and as per the tastes and preferences they prefer. For all kinds of
operations, high level of resources along with information and knowledge to use them are
required with an aim to perform the business functions in a way that all set targets for the future
can be effectually attained. It can be seen in Zumbar café that structure of performing operations
in it is effective as well as productive by which the overall profits and market benefits can be
gained (Liang, Chen and Turban, 2009). For the restaurant, it is significant that staff team and
managers that they will assess the market information and requirements of customers effectually
so that actual expectations of the can be determined and accordingly, the action plan can be
implemented. Some of the areas which café should keep in mind while evaluating the approaches
of implementing business operations are:
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 Managing quality – Quality can be termed as the value and certain level of standards
that Zumbar should maintain in its products and services as well as must offer to the
customers. Quality is that aspect which prove to be highly helpful in keeping the
customers satisfied and thus, in earning higher profits for the business (Sampson and
Spring, 2012). Also, with rendering high quality in the market, goodwill of business can
be increased with which firm will be able to gain a high customer base. In the present
scenario, Zumbar coffee and tea house, Cardiff that has established as a coffee bar in now
offering expanded with the food items as well. Around 12% of entire group of café's sales
is gained from merchandise that leads to make surety that in the offered products and
services, firm is maintaining high quality standards (Spector and McCarthy, 2012). The
café has conducted many surveys in which it gained information from customers
regarding quality, food and suppliers. However, they surveys made are generally in
between the scale of 1-7 where the parameter has decided that anything below the rank of
7 is considered as a failure. In accordance with customer’s surveys and feedback, Zumbar
gains a lot of help in updating their menu, music, memorabilia, service and plan of action
so that customer’s expectations can be met in the most effective manner (Kumar, Kim
and Kumar, 2012).
 Process and capacity design – For the purpose of transforming resources into attractive
goods and services, process of developing and implementing a strategy prove to be highly
significant. To create a process strategy, firstly, it is important to build up production
process in a way that requirements of customers can be fulfilled to the utmost level by
offering products and services as per their tastes and services along with at the cost that is
acceptable to them with other managerial constraints. Zumbar Coffee and tea house has
effectively designed their operational strategy with an aim to address the objectives in an
effectual manner as well as it is having high control on the operational functions (La
Rosa and et.al., 2011). It comes under the top restaurants and cafes that are having the
capacity of supplying 2,000 coffee products per year in the UK. It shows that the café is
effectually managing its workforce and thus, the schedules, material, inventory as well as
available resources are effectually managed. Apart from that, it can be said that the
capacity and processing design are also effectually managed in the firm by which
business operations are being conducted in an effectual manner (Anh and Matsui, 2011).
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This is the reason; Zumbar can include some more unique food items in the menu where
it can also give the option of personalised food preparation. Further, facilities like on-
time delivery can also be given with making efforts on rendering better quality in
products through properly cooked items as well as by using fresh ingredients.
 Location and layout strategies – For Zumbar, important factors that are needed to be
considered so as to run overall business activities in an effectual manner are location and
layout strategies. This prove to be highly helpful in improving the overall business
activities and flow of operations in the café. As Zumbar Coffee and tea house is situated
at a perfect location, that is, the main road and the place which is nearby ocean, it is
easily in reach of maximum customers as well as they like to spend their time at such a
beautiful, soothing and relaxing place (Becker, Kugeler and Rosemann, 2013). As per the
ambience of café i.e. interior layout and view of ocean from there, maximum youngsters
and teenagers used to come here on daily basis. However, the fact cannot be ignored that
layout of cafe is quite unattractive from outside and so, proper renovation is required here
to make it eye catching by some experienced architect. Further, it is important for them to
increase their capacity of seating and occupancy in order to increase the scope of business
by enhancing its existing customer base (Spector and McCarthy, 2012).
3. Applying five performance objectives to the organisation and improvements that could be
made
Performance objectives should be structured in a strategic and tactical manner so that
business can attain its set targets effectually in a timely manner. For Zumbar café, it is important
to maintain the perfection over so that attractive profits can be gained as well as ultimate
objectives can be achieved. The performance objectives of any organisation and as that of
Zumbar restaurant are directly linked with its operational management (Wodak and Meyer,
2009). In a collective manner, performance efficiency of organisation is defined through these
objectives which plays a significant role in supporting the firm by which it can maintain better
market position as well as gain a competitive edge over rivalry restaurants and cafes. Number of
facilities are being offered by Zumbar coffee and tea house like coffee, food, entertainment as
well as music under one roof (Yeadon-Lee and et.al., 2011). However, in order to run business
with sustainability in the long run, it is important to consider the following five performance
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based objectives that will help the management in making business operations smooth and
effective:
Speed: It has been seen that in Zumbar café, high profile consumers and corporate clients
expects an effective and advance approach as per which the services should be provided in a
frequent and speedy. However, it can be critically assessed that delay in operational processes
can create severe issues like consumer response may become less. This is the reason; it is
important for addressing new ways by which the process of preparing and delivering food items
and coffee products can be made faster. For the same, advanced techniques of cooking food can
be used.
Cost: It is considered to one of the most significant and complex aspect for an
organization as to gain high satisfaction level of customers, it is vital to set the price in a fair and
reasonable manner depending on the quality being offered (Liang, Chen and Turban, 2009). It
has been determined that cost of production that Zumbar at present is having must be managed in
such a way that even if low prices will be charged, it would lead to incur higher profits. For the
same, factors like speeding up preparation process as well as maintaining quality of products and
services can be considered.
Flexibility: For Zumbar coffee and tea house, flexibility serves as an important aspect as
it justifies the commitment made by firm to offer a wide range of customized services to the
customers. Therefore, under the same, it is essential to provide consumers with exclusive as well
as unique food items and coffee products so that customer’s expectations can be effectually met.
Also, professional services should be rendered by it in order to attain the maximum benefits.
Dependability: As per the present business scenario of Zumbar coffee and tea house,
implementing an efficient set of training programs will be helpful for the cafe so that skills,
knowledge and efficiency of employees can be increased and they would better be able to deal
with the expectations and demands of consumers (Kumar, Kim and Kumar, 2012).
Quality: The management quality is termed as the main key success factor for every firm
that is having partnership or merchandise with other business. It is because; customers always
get merchandise assistance from the firm that is one of the most recognised business with respect
to offer high quality products and services. Therefore, it can be said that Zumbar coffee and tea
house will gain high benefits from implementing and conducting effective plans by which certain
level of quality in the offered products and services can be effectually maintained.
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4. Critically discussing the supply chain of an organization
According to the views of Christopher (2016) supply chain implies for the process that is
highly associated with the production and distribution of products or services. Hence, supply
chain management is highly concerned with providing products or services to the end customers.
There are several aspects on which organization lays high level of emphasis includes quality,
speed, customer satisfaction and market related factors. By keeping all such aspects in mind
business unit can perform activities in an effectual way. All the above mentioned factors help
company in achieving the goals and objectives. However, on the critical note, Stadtler (2015)
stated that along with the quality, satisfaction aspect business entity is required to make effectual
control on supply chain. Hence, by managing the supply chain in the best possible way firm can
enhance productivity and profitability.
In order to build distinct image in the mind of customers Zumbar Coffee and tea house is
positioned itself on the basis of layouts, innovative menu and services. Café house entailed that it
offers high quality services at affordable prices. In addition to this, now people prefer to go to the
restaurant which offers high quality services to the customers such as listening music and other
fun related activities. Moreover, now individuals prefer to go to the restaurant with their friends
with the motive to spend quality time. In accordance with the views of Mohammadi, Soleymani
and Mozafari (2014) supply chain management is highly integrated with the several strategic
activities. Such activities include procurement of material or services, transformation into final
products and delivering the products to end customer.
Zhang, Shah and Papageorgiou (2013) defined in their study that for making control on cost
and profit level business unit is required to make focus on managing supply chain. On the basis
of this aspect, by approaching to the low cost supplier of raw material firm can exert control on
cost and thereby would become able to offer services at highly affordable prices. However, on
the critical note, Simons (2013) depicted that sometimes customers make comparison of price
with the quality of services offered. Usually, people think that lower priced services are
considered as they do not have enough quality. Further, Christopher (2016) stated that quality
and hygiene is one of the main aspects that is considered by the individual while making
selection of restaurant. Hence, by keeping such aspect in mind Zumbar coffee and tea house lays
high level of emphasis on procuring quality coffee beans and raw food product from the supplier
such as fresh chicken, fish, egg etc. This in turn enables firm to meet organizational goals and
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objectives. Further, with the motive to build and strengthen the supply chain Zumbar Coffee and
Tea House has taken resort of Avicon architect. This in turn placed positive impact on the
expertise in relation to logistic aspect which assists in managing the managing the supply chain
more effectually. Through this, promotional aspects increased by 12% and operational cost
reduced by 10% to the significant level. In this way, company has attained high level of benefits
through the means of Avicon architect. There are mainly two ways through which Zumbar Tea
and coffee house can manage its supply chain more effectually.
 Outsourcing: It implies for the procurement of raw food products and services from
outsiders. Such activity enables Zumbar coffee and tea house to offer high quality and
innovative products or services to the customers.
 In-sourcing: This is one of the most effectual aspects which in turn help in facilitating
standardization in the products or services offered. Hence, by preparing food and finding
innovative way to prepares tea as well as coffee firm can attain success.
5. Comparing and contrasting the quality process of selected organization
In the recent times, quality of the products or services have high level of impact on
customer satisfaction as wells as decision making. Moreover, first preference of the customers is
to visit the restaurant which lay high level of emphasis on quality and hygienic aspects. Hence,
quality management is process of involving and following targets which are agreed by the
customers. Hence, quality process is highly significant which turn helps in evolving and
enhancing customer satisfaction which in turns into loyalty in the near future. Zumbar coffee and
tea house also follows quality process with the motive to enhance customer base and thereby
helps in building or sustaining competitive over others (Stadtler, 2015). Along with this, with the
rise in the disposable income of personnel and considering the growing trend several business
entities have started restaurants. Thus, firm is facing stiff competition from several restaurants
such as Starbucks in terms of following aspects:
Basis of difference Zumbar coffee and tea
house
Starbucks
In house process It offers products or services
to the customers by following
specific quality standards and
Starbucks follows its own
rules for the preparation and
serving food.
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process introduced by
government.
Following quality standards With the motive to maintain
high quality services Zumbar
coffee and tea house places
emphasis on designing and
circulating standards.
Starbucks place high level of
creating professionalism
within the firm. Hence, by
placing emphasis on such
aspect firm can deliver high
quality services to the
customers and thereby
enjoying loyal customer base
(Mohammadi, Soleymani and
Mozafari, 2014).
Service Personalized services are not
offered by Zumbar coffee and
tea house to the customers. In
this, customers are required to
select food items from the
various options available to
them.
Unlike competitor, Starbucks
offer personalized services to
the customers, It is one of the
main aspects which in turn
helps firm in attracting the
large number of customers.
Evaluation of process Zumbar coffee and tea house
makes evaluation of process
at every stage in against to
the set standards. This in turn
enables firm to make changes
according to the set standard
and thereby helps in meeting
the expectation level of
customers.
In Starbucks, individual that
is assigned with the
responsibility to check quality
makes evaluation of coffee or
tea at the end before serving
to the customers.
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CONCLUSION
It can be concluded from the above report that for Zumbar, it is important to maintain a
strategic approach of operational management in order to increase the scope of business as well
as to sustain the long run. Operational management and service excellence proves to be highly
useful for the organisation and their management so as to attain the final targets with stipulated
timeframe and gaining more response from the concerned market. It has been assessed from the
above report that if Zumbar wants to stay in market with gaining a competitive edge over others,
to have effective management of operations and excellence in services provided is necessary.
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