Case study on:

The Mint
Café

Submitted by;
MBA SEM-II: 07_ARBAB ASRAF
MBA SEM-II: 09_ASEA SHARAF QUIDWAI
MBA SEM-II: 24_MOHD. FAIZ
MBA SEM-II: 27_MOHD. IMTIYAZ
MBA SEM-II: 43_SHAFOORA HABIB
MBA SEM-II: 47_SHAHNAWAZ AHMED
MBA SEM-II: 51_SHIVEEN ANSARI
CASE HIGHLIGHTS
• Mr. Raj Malhotra took over a family owned restaurant from his father in 2001.

• Key points about restaurant__

1.Opened in year 1960 .
2.Situated at key shopping area in Bangalore and a landmark.
3.Cheap n Best & has nostalgic appeal.

• Mr. Raj wanted new customers and thus opens up a new fast food restaurant at
same premises.

• Around Fifty percent of people who come at fast food section asked for parcels

Contd……
Contd……
• Mr. Malhotra emphasized a lot on quality of food by ensuring that the
ingredients were fresh.

• Expecting that there may arise problem of unavailability of material, Mr.

Malhotra opts for more than one supplier, not sticking to advice of his
father i.e. the relationship between and commitment of buyer and supplier
is essential for the growth and survival of the business.

• There was problem of quality and delaying of items with new supplier.

• Malhotra was unhappy with new supplier and decides to go back to

previous supplier
::::QUESTIONS ::::

1. Which would be a better option for Malhotra – opening

the fast food section at a new location or at the same
location as given in this case ?

2. Which operational factor plays a major role in

establishing and running a restaurant ?

3. Should the selection of the supplier be totally based on the

least price offered ?
1:Which would have been a better option for
Mr.Malhotra – opening the fast food section at a
new location or at the same location as given in
this case? Justify your answer.

• Mr. Raj Malhotra should go for the first option

opening a new fast food joint at a new location than
the later option which is opening a Fast Food section
as an extension of the old restaurant.
JUSTIFICATIONS
• Regular customers/old loyal customers may face
inconvenience and due to space crunch.
• Service may suffer .
• Congestion at the restaurant.
• Core service failure:
service mistake
willing errors
service catastrophe (long wait for
service)
• Customer unsatisfaction leading to customer
switching behavior.
• A new fast food joint at a new location will
be consistent with the idea of attracting new
customers.
• Key to survival and growth.
• Generation of new revenue streams through
customers segmentation.
• Better handling of both restaurant can be
achieved.
• Different offerings at different convenient
locations will serve the customers well.
• Cost cutting measures like
 self service
 stand and eat
can be properly handled
• Old customers can be given undivided
attention.
• New location will lead to customers
moving in and moving out quickly.
• The old one will continue to sustain
through its nostalgic value.
• Old regular customers will not
compromised for the new one.
2:Which operational factor plays major role in
establishing and running a restaurant?

There are a number of factors that are responsible

for efficient running of a restaurant…..

• Demand forecasting
• Process design and layout
• Waiting lines
• Quality management
• Inventory control
Demand forecasting

• Good decisions begins with good forecasts.

• Forecasting is the art and science of predicting future
events.
• Demand forecasts drive many aspects of an
organization, from planning facilities, personnel,
production, and materials acquisition to market &
distribution.
• Inaccurate demand forecasts can lead to over or
understaffing of operations, product shortages, excess
inventories and late deliveries.
Process layout

Functional layout
1.Job shop process
2.Cellular process

Job-shop and cellular production processes must be

designed for flexibility to accommodate a variety of
movement patterns.
Waiting lines….nobody likes to wait.

• Waiting lines are a common and important

component of most service & manufacturing system.
• If customer at a fast-food restaurant have to wait too
long for service, the customer base will disappear.
• Queues form when short-term demand for a service
exceeds the capacity of the system to serve.
• Normally service systems are designed so that on
average the service capacity is greater than the long
term expected demand.
• But what make queuing system so interesting to
study, however is that the exact moment that
customers will demand service and the amount of
time it will take to serve them can both be random.
Thus, although the average service capability may
exceed the average demand rate, over a shoot time
interval the demand rate may exceed the service
capacity.
Quality management system

• Good product quality does not occur by accident. To

achieve it, an organization must know what
constitutes good quality and must be able to measure
and monitor it in some way…
• How to achieve quality?
1. Incoming Material Inspection.
2. In-Process Inspection and Testing.
3. Evaluation of Final product.
• Total Quality Management
Inventory Planning

• Inventories are expensive; they tie up financial

resources that could be used for other purposes and
they incur ongoing costs of storage, handling, taxes,
and spoilage.
• Excessive inventories are frequently a symptom of
more fundamental problems with the production
system, such as poor quality, slow setups, poor
scheduling, and poor process design.
• Reduction of lead time by incorporation of just-in-
time techniques.
3: Should the selection of the supplier be
totally based on the least price offered?

• Current Hindrance

Occasional problem with quality of item

supplied and delivery dates.
Justification:

• Every financial/investment decision of

the firm should lead to the possible best
output, not only in the short run but also
in the long run:
• Cost and Quality not always go hand in
hand.
Compromising with quality of the
product/services leads to dissatisfaction
of customers that further leads to negative
advertising of the firm.
Expectation after shifting to new supplier:

1. Competition between suppliers that would

lead to lowering of prices of raw materials.
2. At least better quality is expected from the
new supplier.
3. Delivery time should be according to the
requirement .
Reasons for shifting to new supplier:

1.Best possible quality of product and

services.
2.Reasonable cost.
3. Maintaining cordial relationship with
customers as well as suppliers.
• Preference to apply Marketing concept
rather than Selling concept.
* Instead of selling more stuff to more
people more often in order to make more
profit is not the motive behind this
decision but satisfying the customers is
more important.
• Instead of make and sell its all about
sense and respond. Instead of hunting it is
gardening.
• Providing best product/services, being
more customer sensitive is required.
• Minimizing cost should be there but not
at the cost of quality of their product.
Last Word:

Marketers who don’t learn the language of

quality improvement , manufacturing,
and operations will become as obsolete as
a buggy whip.
We have to think of ourselves as
customer satisfiers.
 THANK YOU:

Feedback and suggestions are welcome at:

safurahabeeb@gmail.com
shiveen_capricorn@yahoo.co.in