A systems study on Max's Restaurant - San Pablo, Laguna branch

• Main Authors: Chua, Jade Christian T., Estrellado, Kristina P., Salting, Erika
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Max's Restaurant; Restaurant management; Food service > Labor productivity; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11146
• Institution: De La Salle University

Maxs Restaurant has been in the operations since 1945. Presently, it already has built more than 114 branches all around the Philippines including company owned and franchise stores. It also has franchises in USA as well. One of its branches is in San Pablo City Laguna where the system study was conducted. Data gathering was done on the different parts of the system namely placements, persons, raw materials, information, method, equipment, utilities, environment and performance. After documenting and discussing the present system, the strengths, weakness, opportunities and threats (SWOT) were identified. Through WOT-SURG analysis the main problem was determined. It was found out that the restaurant is facing a problem with regards to the speed of service delivery. According to the Quality Assurance audit, the restaurant received a grade of 90.35% which deviates from the standard grade of 92%. Customer satisfaction was also taken into consideration through conducting surveys which also turned out to be low or far from the expected value. In the Problem Analysis part, the initial why-why diagram was constructed for the speed of service delivery problem. Causes were identified and validated through captured videos and observations of the restaurant operations. Here listed are the final causes of the problem which were identified through Pareto Analysis: No assigned personnel/equipment to signal the waiters Low stove capacity Lack of training of workers No motivation program implemented in the restaurant for the workers Layout design Different solution were made to further improve the speed of service, customer perspective and employee performance. Here listed are the proposed solutions for the root causes identified. The following solutions were selected through Kepner-Tregoe Decision Analysis: Assign workers to bring cook foods closer to the kitchen, transfer bar to the Ruby Room, and install a buzz system Andon System. Have one (1) additional stove installed in the kitchen Proposed solutions for customer perception were also made namely: Putting up fish tanks/aquariums. Put televisions in the other two dining areas that would features movies. Provide interesting things to do (i.e through the use of paper placemats) •Provide free light appetizers. Put up memorabilia that could be viewed by the customers For employees to be motivated to provide excellent service to customers, an employee of the month award will also be implemented. They would be given certificated and their pictures would be posted in the restaurant. The proposed solutions for improving the speed of service delivery and increase customer satisfaction will have an investment cost of Php 13,263.00 and are expected to generate an annual savings of Php 85,824.00. The total annual cost will amount to Php 46,000.68, which results to annual net benefit of Php 39,823.32. The payback period was computed to be four (4) months. The Net Present Value 9NPV) of the proposed solutions was also computed which equaled to Php. 145,113.34. The proposed solution for the perception of the customers will have an investment cost of Php108,000.00 and an annual cost of Php37,500. This will generate an intangible benefit for the company which would not only affect its profits but increase customer satisfaction as well. Based on the literature, increase in customer satisfaction will result to a 5% increase in customer loyalty which will increase profits by 25% to 85%.