Hardrock

Introduction
The instructions indicate that, in its 30 years of existence, Hard Rock has grown
from a modest London pub into a global power managing 110 cafes, three hotels,
casinos, live music venues, a rock museum, and a huge annual Rockfest concert. This
puts Hard Rock firmly in the service industry—a sector that employs over 75% of the
people in the U.S. The purpose of this paper is to identify how each of the 10 decisions of
operations management is applied at Hard Rock Café and note how the productivity of
the kitchen staff and wait staff at Hard Rock would be determined.
Question 1
The 10 critical decisions of operations management and how they would be
applied at Hard Rock are as follows:
1. Service and Product Design: Goods and services that should be sold in their
restaurant and merchandise stores; how those products and services should be
designed
2. Quality Management: How they define quality as far as their goods and services
are concerned and who is responsible for it
3. Process and Capacity Design: What processes it will take to prepare their food or
sell their merchandise; what equipment and technology is necessary to make that
happen
4. Location: Where their restaurants/stores are located and what criteria they should
base those decisions on

5. Layout Design: How their restaurants and stores should look on both the inside
and outside; how the kitchen and behind-the-scenes should be laid out for
maximum efficiency; how large the facility must be to accommodate their goals
6. Human Resources and Job Design: How to provide a good work environment for
their employees; what they can expect of their employees
7. Supply Chain Management: Should products be made in-store or ordered; what
suppliers should be used
8. Inventory, Material Requirements Planning, and JIT: How much inventory they
should keep in stock; when do they reorder that inventory
9. Intermediate and Short-Term Scheduling: Is it in their best interest to keep people
on the clock when it is slow; what jobs are coming up next
10. Maintenance: Who is responsible for restaurant and store maintenance and when
it should be done
(Scribd 2008)
Question 2
Besides just observation, there are a number of calculations that can be performed
in order to measure the productivity of the kitchen staff and wait staff at Hard Rock.
These include Wage Cost % (of sales), Total Labor Cost % (wages, insurance, retirement,
superannuation, payroll taxes), Total Labor Hours (hours worked in each section
measured against sales), Function Labour Charge-Out (need consistent mark-up on
charge-out to service staff that caterers offer), Sick Days Taken (measure of morale and
management skills), Labor Turnover (number of new staff in a time period—should be

low), Average Length of Employment (success of keeping staff), and Average Hourly
Pay (total payroll divided by all staff’s work hours). (Profitable Hospitality 2008)
Conclusion
The purpose of this paper has been to identify how each of the 10 decisions of
operations management is applied at Hard Rock Café and note how the productivity of
the kitchen staff and wait staff at Hard Rock would be determined. According to the
resources accessed, the above describes how each of these tasks should be accomplished.
References
“Operations and Productivity.” PowerPoint Presentation. Scribd. 2008. Online.
http://www.scribd.com/doc/2168650/Lec1Operations-and-Productivity
“Key Performance Indicators for Restaurants, Cafes, Catering, Clubs & Hotels.” 2008.
Profitable Hospitality. Online. http://209.85.165.104/search?
q=cache:h35dnlZY4eIJ:www.profitablehospitality.com/public/88.cfm+
%22measure+kitchen+productivity%22&hl=en&ct=clnk&cd=1&gl=usReferences
“Operations and Productivity.” PowerPoint Presentation. 2008. Online.
http://www.scribd.com/doc/2168650/Lec1Operations-and-Productivity
“Key Performance Indicators for Restaurants, Cafes, Catering, Clubs & Hotels.” 2008.
Profitable Hospitality. Online. http://209.85.165.104/search?
q=cache:h35dnlZY4eIJ:www.profitablehospitality.com/public/88.cfm+
%22measure+kitchen+productivity%22&hl=en&ct=clnk&cd=1&gl=us

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Introduction

The 10 critical decisions of operations management and how they would be

applied at Hard Rock are as follows:

are concerned and who is responsible for it

base those decisions on

their employees; what they can expect of their employees

7. Supply Chain Management: Should products be made in-store or ordered; what

suppliers should be used

should keep in stock; when do they reorder that inventory

9. Intermediate and Short-Term Scheduling: Is it in their best interest to keep people

on the clock when it is slow; what jobs are coming up next

measured against sales), Function Labour Charge-Out (need consistent mark-up on

management skills), Labor Turnover (number of new staff in a time period—should be

“Operations and Productivity.” PowerPoint Presentation. Scribd. 2008. Online.

Profitable Hospitality. Online. http://209.85.165.104/search?

“Operations and Productivity.” PowerPoint Presentation. 2008. Online.

Profitable Hospitality. Online. http://209.85.165.104/search?

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