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Case Study: Managing Large Restaurant Venues

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Our latest case study takes a look at La Cuadra de Salvador , an exclusive American-style steakhouse restaurant, that recently opened a new location in the San Isidro district, located on Calle Santa Luisa con Tradiciones. The restaurant is well-known for using very high-quality meat imported from the United States as its main ingredient, attracting visitors from around the world.

We spoke to the General Manager, Pedro Pablo Pazos to find out more about the restaurant's success, their transition from pen and paper as well as their upcoming expansion with a third location in Lima, Peru. 

Introduction

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Up until today, the restaurant managed to attract international and local visitors alike due to their incredible imported meat and unforgettable dining experience. “What makes our location unique is, first of all, the quality of the meat we import is the highest quality possible. The second quality is that we have very big locations . For example, one of our locations is about 1000 meters, so approximately 10,000 square feet,” the general manager, Pedro says. “The second location is almost the same because we have such big locations. We probably have 200 seats now in each one,” he adds. 

So, with much larger locations, how do Pedro and his team manage to streamline their operations, turn tables faster and provide an easy booking experience for their guests? Let’s take a look at the challenges they face as a steakhouse restaurant and how they managed to overcome them using a table management system like Eat App.

The problem

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Before using a system like Eat App, organizing tables and planning for the night ahead was a very manual process. “What we did before was we did all the reservations on Monday. So basically, if you want to make a reservation you will have to call us. And there was a person writing your name, the time, the number of guests. And at a certain point we would just make notes,” he says.

To improve the reservation process Pedro then realized they needed to make a shift from pen and paper to help streamline their operations more effectively. And most importantly, help their staff save time. “We saw that there were a lot of reservations and we said, OK, let's close it. But we didn't know if there was a space or if we counted more people,” Pedro explains. “We didn't have the data. And we did it all manually. For example, it was a Saturday evening around 4 p.m. and you had the people that take the reservation calls, the people that were in charge of closing the website at 4 p.m. and sometimes that person didn't answer the phone. So we would have an internal crash because more people would come in than we were in a position to take in,” he says. 

So how did Pedro and his team overcome this obstacle?

The solution 

To help them improve their reservation process and work more sufficiently, they needed a table management system. “When we started using Eat App, we solved these problems because we were able to select the table and the day (available for reservations) and we were able to put the duration that we wanted each reservation to last. So, for example, we saw on our soft days, we don't have much of the public coming in. We have a certain type of reservation for the tables that work,” Pedro says. 

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What's next for La Cuadra de Salvador?

Today, the popular steakhouse has seen massive improvements when it comes to its booking process and of course, an increase in revenue. This has led to staff members having a lot more time to rather focus on the guest experience, as well as the restaurant's future expansion to yet another location. “We have two [locations], and one more location coming in the next month,” Pedro says. “I think with the third one, we're going to stop, because Lima, where we are based, is a very small city, and not as big as other places. So maybe we are looking to expand the brand and go out to other continents to expand,” the General Manager of La Cuadra de Salvador says.

Why they recommend Eat to other restaurants

Collecting valuable information about their restaurant and guests has become extremely important for Pedro and the team. Luckily, with Eat App restaurant operators can easily view and digest the data to make informed business decisions. “What I like the most is the visualization and how easy it is to understand the data and the graphs of customers,” he says. “What I liked the most is how Eat App shows the information to you. I mean, it's super easy, super simple. It’s user-friendly and not hard to understand,” Pedro adds. Eat App also offers restaurant owners the opportunity to customize the system to suit their internal needs.

“And another thing is also the automation processes that you have are super easy to create and they are really easy to use. And also obviously all the support you get from the [support] team. Although they are not locally based, the support team is always available to assist via email regardless of the time, someone will always respond to you. This also helps me a lot,” he says.

Another benefit - Eat’s advanced CRM system

To help increase guest loyalty and get VIP visitors to come back, Pedro and his team have set up automated emails by using Eat App’s advanced built-in CRM system. “The email messaging is working very well. And we find it very useful because we send all types of information [to our guests],” Pedro says. “And it also helps us, for example, when you made a reservation three months ago and you haven't come back, then we send you another one just to let you know that we're still open and we want you to come back to your restaurant. And we have like maybe four or five types of automation messages and they're working very well,” he adds. 

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Elana Kroon

Elana Kroon used to work in restaurants before becoming a journalist and expert restaurant industry content creator at Eat App.

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Case Study: Which Customers Should This Restaurant Listen To?

  • Sandeep Puri,
  • Kirti Khanzode,
  • Alison Beard

Half want something new, but half don’t want it to change.

Rohit was juggling eggs. Smooth, brown ovals—in one hand or the other for a split second, and then up, up, up in the air. First there were three, then four, then five— Where are they coming from? he wondered—but he kept his arms moving and the loops going, and the crowd in front of him cheered. Where am I? Who are these people? He wanted to look around but knew he couldn’t take his eyes off the eggs. Then, suddenly, they changed into different things: a chicken leg, a courgette, a tomato, a potato, and a bag of lentils. He tried to keep juggling, but his fingers slipped on the slick chicken skin, he tossed the lentils too low and the potato too high, and everything came crashing to the ground. He looked down, but the mess wasn’t what he expected. All around him were broken eggs—dozens of them—whites and yolks oozing out through splintered shells.

yaseer restaurant case study solution

  • SP Sandeep Puri is an associate professor at the Asian Institute of Management, in the Philippines.
  • Kirti Khanzode is an associate professor at the Institute of Management Technology in Dubai.
  • Alison Beard is an executive editor at Harvard Business Review and previously worked as a reporter and editor at the Financial Times. A mom of two, she tries—and sometimes succeeds—to apply management best practices to her household. alisonwbeard

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Home » Management Case Studies » Case Study on MIS: Information System in Restaurant

Case Study on MIS: Information System in Restaurant

Case Summary:

A waiter takes an order at a table, and then enters it online via one of the six terminals located in the restaurant dining room. The order is routed to a printer in the appropriate preparation area: the cold item printer if it is a salad , the hot-item printer if it is a hot sandwich or the bar printer if it is a drink . A customer’s meal check-listing (bill) the items ordered and the respective prices are automatically generated. This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiter’s handwriting. When the kitchen runs out of a food item, the cooks send out an ‘out of stock’ message, which will be displayed on the dining room terminals when waiters try to order that item. This gives the waiters faster feedback, enabling them to give better service to the customers. Other system features aid management in the planning and control of their restaurant business. The system provides up-to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales. This helps management plan menus according to customers’ tastes. The system also compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. In addition, whenever an order is voided, the reasons for the void are keyed in. This may help later in management decisions, especially if the voids consistently related to food or service. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen.

Management Information System in Restaurant Case Study

  • In the light of the system, describe the decisions to be made in the area of strategic planning , managerial control and operational control? What information would you require to make such decisions?
  • What would make the system a more complete MIS rather than just doing transaction processing?
  • Explain the probable effects that making the system more formal would have on the customers and the management.

Solution of Management Information System in Restaurant Case Study:

1. A management information system (MIS) is an organized combination of people, hardware, communication networks and data sources that collects, transforms and distributes information in an organization. An MIS helps decision making by providing timely, relevant and accurate information to managers. The physical components of an MIS include hardware, software, database, personnel and procedures.

Management information is an important input for efficient performance of various managerial functions at different organization levels. The information system facilitates decision making. Management functions include planning, controlling and decision making. Decision making is the core of management and aims at selecting the best alternative to achieve an objective. The decisions may be strategic, tactical or technical. Strategic decisions are characterized by uncertainty. They are future oriented and relate directly to planning activity. Tactical decisions cover both planning and controlling. Technical decisions pertain to implementation of specific tasks through appropriate technology. Sales region analysis, cost analysis, annual budgeting, and relocation analysis are examples of decision-support systems and management information systems.

There are 3 areas in the organization. They are strategic, managerial and operational control.

Strategic decisions are characterized by uncertainty. The decisions to be made in the area of strategic planning are future oriented and relate directly to planning activity. Here basically planning for future that is budgets, target markets, policies, objectives etc. is done. This is basically a top level where up-to-the minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales is provided. The top level where strategic planning is done compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. Executive support systems function at the strategic level, support unstructured decision making, and use advanced graphics and communications. Examples of executive support systems include sales trend forecasting, operating plan development, budget forecasting , profit planning , and manpower planning .

The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers. It is basically a middle level where planning of menus is done and whenever an order is voided, the reasons for the void are keyed in which later helps in management decisions, especially if the voids are related to food or service. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction.

The decisions to be made in the area of operational control pertain to implementation of specific tasks through appropriate technology. This is basically a lower level where the waiter takes the order and enters it online via one of the six terminals located in the restaurant dining room and the order is routed to a printer in the appropriate preparation area. The item’s ordered list and the respective prices are automatically generated. The cooks send ‘out of stock’ message when the kitchen runs out of a food item, which is basically displayed on the dining room terminals when waiter tries to order that item. This basically gives the waiters faster feedback, enabling them to give better service to the customers. Transaction processing systems function at the operational level of the organization. Examples of transaction processing systems include order tracking, order processing, machine control, plant scheduling, compensation, and securities trading.

The information required to make such decision must be such that it highlights the trouble spots and shows the interconnections with the other functions. It must summarize all information relating to the span of control of the manager. The information required to make these decisions can be strategic, tactical or operational information.

Advantages of an online computer system:

  • Eliminates carbon copies
  • Waiters’ handwriting issues
  • Out-of-stock message
  • Faster feedback, helps waiters to service the customers

Advantages to management:

  • Sales figures and percentages item-wise
  • Helps in planning the menu
  • Cost accounting details

2. If the management provides sufficient incentive for efficiency and results to their customers, it would make the system a more complete MIS and so the MIS should support this culture by providing such information which will aid the promotion of efficiency in the management services and operational system. It is also necessary to study the keys to successful Executive Information System (EIS) development and operation. Decision support systems would also make the system a complete MIS as it constitutes a class of computer-based information systems including knowledge-based systems that support decision-making activities. DSSs serve the management level of the organization and help to take decisions, which may be rapidly changing and not easily specified in advance.

Improving personal efficiency, expediting problem solving (speed up the progress of problems solving in an organization), facilitating interpersonal communication, promoting learning and training, increasing organizational control, generating new evidence in support of a decision, creating a competitive advantage over competition, encouraging exploration and discovery on the part of the decision maker, revealing new approaches to thinking about the problem space and helping automate the managerial processes would make the system a complete MIS rather than just doing transaction processing.

3.   The management system should be an open system and MIS should be so designed that it highlights the critical business, operational, technological and environmental changes to the concerned level in the management, so that the action can be taken to correct the situation. To make the system a success, knowledge will have to be formalized so that machines worldwide have a shared and common understanding of the information provided. The systems developed will have to be able to handle enormous amounts of information very fast.

An organization operates in an ever-increasing competitive, global environment. Operating in a global environment requires an organization to focus on the efficient execution of its processes, customer service, and speed to market. To accomplish these goals, the organization must exchange valuable information across different functions, levels, and business units. By making the system more formal, the organization can more efficiently exchange information among its functional areas, business units, suppliers, and customers.

As the transactions are taking place every day, the system stores all the data which can be used later on when the hotel is in need of some financial help from financial institutes or banks. As the inventory is always entered into the system, any frauds can be easily taken care of and if anything goes missing then it can be detected through the system.

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5 thoughts on “ Case Study on MIS: Information System in Restaurant ”

please give me solution of case study urgent.

Just read the post thoroughly, you’ll find the solution there.

Please I have a similar case study. Can you help me with the solutions

A small company has for some years being using a manual system for processing of billing, payment of creditors and payroll system. The company is considering purchasing a computer on which it will run these application and others that it will develop in the near future. You have been asked to prepare a report on the implication of this proposed course of action.

1. Identify and describe six major issues which would be considered in an investigation of the feasibility of the proposal. 2. Suggest the outline structure of the report.

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Managing Restaurant Congestion Case Solution & Answer

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Managing Restaurant Congestion Case Solution

Introduction.

A restaurant named Kazu was opened in 2010 in Montreal, Quebec a province of Canada, by a couple, migrated from Japan. The owner of the restaurant Kazu Akutsu asked a Master of Science (M.Sc.) candidate at the John Molson School of Business, Mr. Ken Ling to look into the problem of long waiting lines, as the restaurant was facing the issue of overcrowded area with long waiting lines of customers. Mr. Ling and his assistant closely monitored the situation one evening and give the data to Mr. Akutsu about their findings.

This paper is based on critical analysis of all the problems faced by Mr. Akutsu. Initially, the main problems are identified and thoroughly studied to provide the alternatives solutions for the problems. One alternative is being suggested with a complete implementation plan.

Problem Statement

Kazu restaurant is a family owned small business, being in a populated area along with its impressive menu and price it is quite popular among customers. It Was operating in its full capacity in 2018, in its normal working days it remains crowded having long waiting lines of customers and in its peak working time of tourism season that is late June to August.This issue becomes worse and the crowd of customers blocks the road. The owner is wondering about the problem and thinking how to tackle the issue as its peak operations time is coming near after just two weeks in 2018. Mr. Kazu does not have the plan to extend his restaurant area or change the location, he wants some other solution. He has to take the decision as quick as possible. What steps should he take to handle the situation and retain the customers in its peak time?(Huang, 2019)

Current State Analysis

Qualitative analysis.

In Quebec the restaurant industry is well growing and dynamic one and the full-service restaurants earns 40- 50 percent more than the quick service restaurants. Therefore, the full- service restaurant, Kazu has a quite good opportunity to grow in Quebec and its neighborhood. The restaurant has the best location as it was placed in the middle of the densely populated area having universities, schools, museums and hospitals around it.

Mr.Akutsu Kazu was the leading Chef assisted by three helpers of which only two works during lunch while remaining one helper remains free at that time. Mrs. Kazu was the cashier and have six servers at weekdays and one more server in weekends.

The restaurant remains full day close on Tuesdays, Wednesdays and Saturdays which is a longer closure time of the restaurant as compared to the others. It is because Mr. Kazu, the only chef, does purchases of raw materials for preparing food and pre-processed the ingredients during this closing time of restaurant.

Quantitative Analysis

The layout of restaurant is quitecramped, a narrow space has been rented for the restaurant consisting on 65 square meters which has 6 square tables and 10 bars tools in which 27 customers can be seated while the restaurant can serve up to 30 customers.

The restaurant has a quite good menu in terms of dishes as well as their prices, having a mix of appetizers, main course, deserts and drinks. It has offerings for business customers like $39 tuna belly and it also maintains the student’s offerings like a $9 pork bowl. It also sells home-made dressing for $6 per bottle and it has a quite good demand for it.

Because the restaurant has very tiny area for serving it has to face a crowd of customers having long waiting lines that also discourage the customers coming it have food. According to the data collected by Ling on Saturday night, the restaurant has served 159 customers with 5 times customer turnover and 46 customers left the restaurant without getting served that means the restaurant is losing customers at the ratio of 1:3 that is quite serious issue for the business which needs to be solve.

Quantitative analysis has been performed in order to analyze the company’s current systemand its procedure for facilitating customers.

Little’s Law

Little’s law only used in OR operations to determine the effectiveness of the queuing system. This law was first introduced by John Little and specially design for small business operations. As Mr. Akutsu’s restaurant is a small business serving limited number of customers, this law is very effective to analyze the current situation of the Kazu restaurant. (JDC Little, SC Graves, 2012)

The results indicate a positive outcome and shows the effective use of the limited resources. It states that customer’s average waiting time is almost 0:04 with the per hour number of 205 customers which resulting in 7:28. There are some areas which needs to improve for generating more revenues. (See appendix 2)

The gathered data are used to analyze some of the basic calculations. The utilization rate has been calculated with the help of utilization rate formula, it provides 240% utilization rate. This indicate that all available servers were utilizing their full capacity to serve more customers. The rate is more than 100%, indication double of it, this means that number of servers are minimum as compared to number of customers being served. So, there is a need it increase the trained staff for satisfying available customers. Fill rate is 99% that means customers are being served according to order placed by 99%. The average queuing length is 7:28. (See appendix 3)

Critical Success Factors

The main strategy of the company is to keep the cost as low as possible and keep the customers happy as well as emphasizing on the density in the restaurant.The core strength of the restaurant is the low-cost strategy gained by the procurement abilities of Mr.Akutsu. (KS Chin, BL Chan, PK Lam, 2010)

To keep the solution cost effective, Kazu should utilize its full capacity as the serving area has some space to adjust one more table with three seats.The helper who remains free during the preparation of lunch should be trained for food preparation that results in fast delivery or procurement process for time cost and time saving for Mr.Akutsu or he could also work as a server during lunch time.

One more success factor is the best location of the restaurant, Kazu should utilize its space with full capacity, it can make the seating arrangement in its pavement area.The servers should ensure that no table remain free during the time of lunch or dinner and promptly get filled by the customers, customers should be informed for free area.

Make an effective inventory management system. Monitor the inventory and reduce wastage as we’ll as utilization of seasonal items is quite for offerings something different for the customers. Use first in first out for(FIFO) for inventory utilization…………..

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Oliver's diner description.

The owner of Oliver's Diner in Grand Bend, Ontario, was confident that his new venture would be a success. His diner had become an instant hit with local cottagers and tourists, often leading to long waiting lines at peak periods. However, the popularity of the restaurant had led to some "growing pains," and the owner wanted to improve his operation. In particular, he was concerned the high volume of customers had placed a strain on his staff, particularly on weekends. He was also discouraged to hear customer complaints about the long queues to get a table, and longer than expected wait times for meals. It was early July 2016, and the owner was reviewing data from his first two months of operation. He needed to identify opportunities to improve operations and customer service.

Case Description Oliver's Diner

Strategic managment tools used in case study analysis of oliver's diner, step 1. problem identification in oliver's diner case study, step 2. external environment analysis - pestel / pest / step analysis of oliver's diner case study, step 3. industry specific / porter five forces analysis of oliver's diner case study, step 4. evaluating alternatives / swot analysis of oliver's diner case study, step 5. porter value chain analysis / vrio / vrin analysis oliver's diner case study, step 6. recommendations oliver's diner case study, step 7. basis of recommendations for oliver's diner case study, quality & on time delivery.

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Case Analysis of Oliver's Diner

Oliver's Diner is a Harvard Business (HBR) Case Study on Technology & Operations , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Oliver's Diner is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Oliver's Diner case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Oliver's Diner will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Oliver's Diner case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Technology & Operations, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Oliver's Diner, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Oliver's Diner case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Technology & Operations Solutions

In the Texas Business School, Oliver's Diner case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Oliver's Diner

Step 1 – Problem Identification of Oliver's Diner - Harvard Business School Case Study

The first step to solve HBR Oliver's Diner case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Diner Oliver's is facing right now. Even though the problem statement is essentially – “Technology & Operations” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Diner Oliver's, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Oliver's Diner. The external environment analysis of Oliver's Diner will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Oliver's Diner case study. PESTEL analysis of " Oliver's Diner" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Oliver's Diner macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Oliver's Diner

To do comprehensive PESTEL analysis of case study – Oliver's Diner , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Oliver's Diner

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Oliver's Diner ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Diner Oliver's is operating, firms are required to store customer data within the premises of the country. Diner Oliver's needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Oliver's Diner has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Diner Oliver's in case study Oliver's Diner" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Diner Oliver's in case study “ Oliver's Diner ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Diner Oliver's in case study “ Oliver's Diner ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Oliver's Diner ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Diner Oliver's can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Oliver's Diner case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Diner Oliver's needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Oliver's Diner

Social factors that impact oliver's diner, technological factors that impact oliver's diner, environmental factors that impact oliver's diner, legal factors that impact oliver's diner, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: oliver's diner case study solution.

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Posted on Mar 30, 2023

Problem solving with SQL: Case Study #1 — Danny’s Diner

Thank you Danny Ma for the excellent case study! You can find it here and try it yourself. While at it, you should give Danny Ma a follow on LinkedIn and support his posts if you aren’t already doing so!

I’ve posted the solution to this case study as a raw SQL script file on GitHub too.

Introduction

Danny seriously loves Japanese food so at the beginning of 2021, he decides to embark upon a risky venture and opens up a cute little restaurant that sells his 3 favourite foods: sushi, curry and ramen.

Danny’s Diner needs your assistance to help the restaurant stay afloat — the restaurant has captured some very basic data from its few months of operation but has no idea how to use its data to help them run the business.

Problem Statement

Danny wants to use the data to answer a few simple questions about his customers, especially about their

  • visiting patterns,
  • how much money they’ve spent, and
  • which menu items are their favourite. Having this deeper connection with his customers will help him deliver a better and more personalised experience for his loyal customers.

He plans on using these insights to help him decide whether he should expand the existing customer loyalty program — additionally, he needs help to generate some basic datasets so his team can easily inspect the data without needing to use SQL.

The data set contains the following 3 tables which you may refer to the relationship diagram below to understand the connection.

sales members menu

Relational model

Image description

Case Study Questions

  • What is the total amount each customer spent at the restaurant?
  • How many days has each customer visited the restaurant?
  • What was the first item from the menu purchased by each customer?
  • What is the most purchased item on the menu and how many times was it purchased by all customers?
  • Which item was the most popular for each customer?
  • Which item was purchased first by the customer after they became a member?
  • Which item was purchased just before the customer became a member?
  • What are the total items and amount spent for each member before they became a member?
  • If each $1 spent equates to 10 points and sushi has a 2x points multiplier — how many points would each customer have?
  • In the first week after a customer joins the program (including their join date) they earn 2x points on all items, not just sushi — how many points do customers A and B have at the end of January?

I used MySQL Workbench and these are the particular functions I employed:

  • Aggregate functions — SUM, COUNT
  • Joins — Inner join, left join
  • Temp tables (CTE)
  • Window function

Before attempting the questions I used the Entity Relationship Diagram as a guide to determine the logical structure of this database. I then went ahead to create a schema and tables to which tables I inserted the respective values

Image description

Questions deep dive

Q1. What is the total amount each customer spent at the restaurant? I use the SUM and GROUP BY functions to find out the total amount spent for each customer. I added the JOIN function because customer_id is from sales table and price is from menu table.

Image description

  • Customer A spent $76.
  • Customer B spent $74.
  • Customer C spent $36.

Q2. How many days has each customer visited the restaurant? I wrapped the COUNT function around the DISTINCT function to find out the number of days each customer visited the restaurant.

If I did not use DISTINCT for order_date , the number of days could be repeated. For example, if customer A visited the restaurant twice on ‘2021–01–07’, then the number of days may have counted as 2 instead of 1 day.

Image description

  • Customer A visited 4 times.
  • Customer B visited 6 times.
  • Customer C visited 2 times.

Q3. What was the first item from the menu purchased by each customer? I first ran a query to find out the earliest order_date and used the answer to filter for only purchases on that date.

Image description

  • Customer A’s first order was sushi.
  • Customer B’s first order was curry.
  • Customer C’s first order was ramen.

Q4. What is the most purchased item on the menu and how many times was it purchased by all customers?

Image description

Q5. Which item was the most popular for each customer?

Image description

  • Customer A and C’s favourite item was ramen.
  • Customer B equally enjoyed all items on the menu.

Q6. Which item was purchased first by the customer after they became a member? Only two customers were members. I ran independent queries to find out the first item they purchased.

Image description

Q7. Which item was purchased just before the customer became a member? I also did the same here. I ran independent queries to find out the first item they purchased because only two customers were members.

Image description

Q8. What are the total items and amount spent for each member before they became a member?

Image description

Q9. If each $1 spent equates to 10 points and sushi has a 2x points multiplier — how many points would each customer have?

Let’s break down the question.

Each $1 spent = 10 points. But, sushi (product_id 1) gets 2x points, meaning each $1 spent = 20 points So, we use CASE WHEN to create conditional statements

If product_id = 1, then every $1 price multiply by 20 points All other product_id that is not 1, multiply $1 by 10 points So, you can see the table below with the new column, total_points.

Image description

Q10. If the first week after a customer joins the program (including their join date ) they earn 2x points on all items, not just sushi — how many points do customers A and B have at the end of January?

The build up to my final query

  • Found out the customer’s validity date (which is 6 days after join_date and inclusive of join_date ) and the last day of Jan 2021 (‘2021–01–21’). I made the result of this query a CTE because I was going to query further from this result in the following CASE WHEN statement .
  • Used CASE WHEN to allocate points by dates and product_name .
  • Filtered by the first day of February to get only points that apply to January.
  • Wrapped the CASE WHEN statement into the SUM function to add up the points for each customer. It’s at this point I dropped all the columns that were originally present in my CTE except for the customer_id column. This is because retaining those other columns was not going to display their actual 'group' representation while I grouped by the customer_id only which I was interested in. And also I had retained them previously to help me check if my query results were right.

Image description

Bonus Questions

Join All The Things Recreate the table with : customer_id , order_date , product_name , price , member (Y/N)

Image description

Rank All The Things Danny also requires further information about the ranking of customer products, but he purposely does not need the ranking for non-member purchases so he expects null ranking values for the records when customers are not yet part of the loyalty program.

Image description

Summary of insights

From the analysis, I discovered a few interesting insights that would be certainly useful for Danny.

  • Customer B is the most frequent visitor with 6 visits in Jan 2021.
  • Danny’s Diner’s most popular item is ramen.
  • Customer A and C loves ramen whereas Customer B seems to enjoy sushi, curry and ramen equally.
  • Customer A is the 1st member of Danny’s Diner and his first order is curry.
  • Before they became members, Customer A and Customer B spent $25 and $40 respectively.
  • Throughout Jan 2021, Customer A, Customer B and Customer C had 860 points, 940 points and Customer C: 360 points respectively.
  • Assuming that members can earn 2x points a week from the day they became a member — not just sushi, Customer A has 1370 points and Customer B has 820 points by the end of Jan 2021.

It’s a wrap!

Feel free to share your opinion about my analysis in the comments. Suggestions on how to optimize my SQL code for performance are also welcome.

Happy querying folks 👋

Top comments (2)

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  • Joined May 9, 2023

In the schema for Danny diner on the official website, Why is there no primary key in the sales table?

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  • Email [email protected]
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  • Education Cloud Computing
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  • Joined Mar 24, 2023

This is great, Well done Bro

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  15. Quick Serve Restaurant Case Studies

    Quick Serve Restaurants. A well-known popular fast-food giant was exploring a cost-effective formulation change for a key menu item that drives 30% of their business. Using the Curion Score™, the client armed themselves with higher confidence to make a high-impact cost savings decision on a key product on their menu, allowing them to retain ...

  16. Managing Restaurant Congestion Case Study Solution for Harvard HBR Case

    According to the data collected by Ling on Saturday night, the restaurant has served 159 customers with 5 times customer turnover and 46 customers left the restaurant without getting served that means the restaurant is losing customers at the ratio of 1:3 that is quite serious issue for the business which needs to be solve.

  17. Oliver's Diner Case Study Solution [7 Steps]

    Strategic Managment Tools Used in Case Study Analysis of Oliver's Diner. STEP 1. Problem Identification in Oliver's Diner case study. STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Oliver's Diner case study. STEP 3. Industry Specific / Porter Five Forces Analysis of Oliver's Diner case study. STEP 4.

  18. Problem solving with SQL: Case Study #1

    Posted on Mar 29, 2023 Problem solving with SQL: Case Study #1 — Danny's Diner # sql # mysql # database # 8weeksqlchallenge Thank you Danny Ma for the excellent case study! You can find it here and try it yourself. While at it, you should give Danny Ma a follow on LinkedIn and support his posts if you aren't already doing so!

  19. 8 Weeks SQL Challenge: Case Study Week 1

    Nov 3, 2021. 2. This is my solution to Danny Ma's 8 Week SQL Challenge Case Study #1 — Danny's Diner using MySQL. You can access the full 8-week challenge here, or just this challenge from ...

  20. Danny's Diner SQL Case Study

    Gautam Behera · Follow 6 min read · Apr 9, 2023 In this article, I'll be sharing my solutions to Danny's 8-Week SQL Challenge Case Study #1, and I'll walk you through how I tackled each...

  21. Solving Danny Ma's SQL Case Study #1

    Case Study Questions What is the total amount each customer spent at the restaurant? The menu table contains the price for each product. We would have to join the sales and menu tables then sum the prices for the orders made by each customer after grouping by the customer_id . SELECT customer_id, SUM(price) AS total_amount FROM sales JOIN menu

  22. Restaurants Case Study Examples That Really Inspire

    Restaurants Case Studies Samples For Students 76 samples of this type WowEssays.com paper writer service proudly presents to you an open-access collection of Restaurants Case Studies designed to help struggling students deal with their writing challenges.

  23. 8 Week SQL Challenge: Case Study #1 Danny's Diner

    Here are some alternative solutions:- you can use the LIMIT clause to limit the number of rows returned by a query in Microsoft SQL Server. SELECT COUNT(s.product_id) AS most_purch, m.product_name