Harvard Case - Mongols BBQ
"Mongols BBQ" Harvard business case study is written by Jay Rao. It deals with the challenges in the field of Service Management. The case study is 8 page(s) long and it was first published on : Jan 1, 2000
At Fern Fort University, we recommend Mongols BBQ implement a strategic plan focused on enhancing customer experience, optimizing operations, and building a strong brand identity. This plan will leverage a combination of service management best practices, employee empowerment, and innovative technology solutions to achieve sustainable growth and differentiation in the competitive fast-casual dining market.
2. Background
Mongols BBQ is a fast-casual restaurant chain offering a unique 'build-your-own-bowl' concept. The company faces challenges related to inconsistent service quality, operational inefficiencies, and a lack of brand recognition. The case study highlights the experiences of two customers, one who had a positive experience and another who faced significant service failures. The case study also presents the company's efforts to address these issues, including the implementation of a new point-of-sale system and the introduction of a customer loyalty program.
3. Analysis of the Case Study
Service Quality and Customer Experience:
- SERVQUAL Model: Mongols BBQ struggles to meet customer expectations in areas like tangibles (cleanliness, ambiance), reliability (consistent service), and responsiveness (speed of service). The case study highlights inconsistent service quality, with significant variation between individual locations and employees.
- Customer Journey Mapping: The customer journey at Mongols BBQ is fragmented, with potential touchpoints for service failure occurring at various stages, from ordering to receiving food.
- Moment of Truth: The 'moment of truth' for Mongols BBQ occurs at the point of service, where the customer interacts with employees. The case study highlights the importance of employee training and empowerment in creating a positive customer experience.
Operational Efficiency and Service System Design:
- Service Blueprinting: Mongols BBQ's service blueprint lacks clarity and consistency, leading to operational inefficiencies and inconsistent service delivery.
- Service Capacity Management: The company faces challenges in managing peak demand periods, resulting in long wait times and customer dissatisfaction.
- Service Standardization vs. Customization: Mongols BBQ's 'build-your-own-bowl' concept creates opportunities for customization but also presents challenges in standardizing service processes.
Branding and Competitive Advantage:
- Brand Identity: Mongols BBQ lacks a strong brand identity, making it difficult to differentiate itself from competitors in the crowded fast-casual dining market.
- Competitive Advantage: The company's unique 'build-your-own-bowl' concept offers a potential competitive advantage, but it needs to be leveraged more effectively through branding and marketing efforts.
4. Recommendations
1. Enhance Customer Experience:
- Service Quality Improvement: Implement a comprehensive service quality improvement program, focusing on training employees on service standards, customer service skills, and the SERVQUAL model.
- Customer Experience Management: Implement a customer experience management system to collect and analyze customer feedback, identify areas for improvement, and track progress over time.
- Service Recovery: Develop a robust service recovery program to address customer complaints and service failures effectively, aiming to turn dissatisfied customers into loyal patrons.
2. Optimize Operations:
- Service System Design: Redesign the service system to streamline operations, reduce wait times, and improve efficiency. This includes optimizing the flow of customers through the restaurant, implementing technology solutions like self-service kiosks, and improving kitchen efficiency.
- Service Capacity Management: Develop a strategy for managing peak demand periods, including adjusting staffing levels, implementing online ordering and reservation systems, and exploring alternative service delivery models like off-site catering.
- Service Standardization: Develop clear service standards and procedures to ensure consistency across all locations and employees. This includes standardizing the 'build-your-own-bowl' experience, providing consistent training, and implementing quality control measures.
3. Build a Strong Brand Identity:
- Branding Strategy: Develop a comprehensive branding strategy that clearly articulates Mongols BBQ's unique value proposition, target audience, and brand personality.
- Marketing Campaign: Launch a multi-channel marketing campaign to raise brand awareness, promote the 'build-your-own-bowl' concept, and drive customer acquisition.
- Customer Loyalty Program: Enhance the existing customer loyalty program to increase customer engagement, drive repeat business, and foster brand loyalty.
4. Empower Employees:
- Employee Empowerment: Implement employee empowerment programs to encourage employee initiative, problem-solving, and customer service excellence.
- Employee Incentives: Develop an incentive system that rewards employees for achieving service quality goals, exceeding customer expectations, and contributing to operational efficiency.
- Employee Performance Management: Implement a performance management system that provides regular feedback, recognizes employee contributions, and supports employee development.
5. Leverage Technology:
- Technology-Enabled Services: Explore and implement technology solutions to enhance customer experience, improve operational efficiency, and build a stronger brand presence. This includes online ordering, mobile payments, self-service kiosks, customer relationship management (CRM) systems, and data analytics tools.
- Service Innovation: Embrace service innovation to create new and exciting customer experiences, differentiate the brand, and stay ahead of the competition. This includes exploring new menu options, developing unique service experiences, and leveraging emerging technologies.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Mongols BBQ's current situation, considering the following factors:
- Core Competencies and Consistency with Mission: The recommendations align with Mongols BBQ's core competencies in providing a unique dining experience and focus on enhancing customer satisfaction, which is consistent with the company's mission.
- External Customers and Internal Clients: The recommendations prioritize the needs of external customers while also considering the needs and well-being of internal clients, including employees.
- Competitors: The recommendations address the competitive landscape in the fast-casual dining market by focusing on differentiation, service quality, and brand building.
- Attractiveness: The recommendations are expected to improve customer satisfaction, increase revenue, and enhance profitability.
6. Conclusion
Mongols BBQ has the potential to become a leading player in the fast-casual dining market by focusing on enhancing customer experience, optimizing operations, and building a strong brand identity. By implementing the recommendations outlined in this case study solution, the company can achieve sustainable growth, differentiation, and long-term success.
7. Discussion
Alternatives:
- Outsourcing Service Operations: Mongols BBQ could consider outsourcing certain service operations, such as customer service or food preparation, to focus on core competencies.
- Franchise Model: The company could explore a franchise model to expand its reach and accelerate growth.
Risks:
- Implementation Challenges: Implementing the recommendations requires significant investment and effort, and there is a risk of encountering implementation challenges.
- Customer Resistance: Some customers may resist changes to the service system or menu.
- Competitive Response: Competitors may respond to Mongols BBQ's initiatives with their own strategies.
Key Assumptions:
- The recommendations assume that Mongols BBQ has the resources and commitment to implement the necessary changes.
- The recommendations also assume that the company can effectively manage the risks associated with implementation.
8. Next Steps
- Develop a Detailed Implementation Plan: Create a detailed implementation plan with specific timelines, resources, and responsibilities.
- Pilot Test Recommendations: Pilot test key recommendations in selected locations before rolling them out company-wide.
- Monitor Progress and Adjust: Continuously monitor progress, gather feedback, and adjust the implementation plan as needed.
By taking these steps, Mongols BBQ can transform its business, enhance customer experience, and achieve sustainable growth in the competitive fast-casual dining market.
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Case Description
This case describes the operations of a limited-menu restaurant to illustrate the following topics: restaurant as an operating system; cost structure in a limited-menu restaurant; areas of competitive advantage; basic process analysis in a service situation; and the development of a formula for a multisite concept.
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