Service Operations Case Study The Coconut Tree

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Please note this case study is based on the very real company – The Coconut Tree – and information

regarding their background has been taken from their website, however the scenario we are
presenting to you has been created by Dr Moya Lerigo-Sampson.

Background
The Coconut Tree is more than just a bar and restaurant. We are a family. Take a group of Sri Lankan
friends living in London and Cheltenham, relocate everyone to Cheltenham in 2016, add a couple extra
to complete our team going forward and work to make a dream reality. What simply started off as finding
a place to call home above a pub, we then sought permission to lease the bar and kitchen of 59 St Paul’s
Road, after a renovation project was carried out every night whilst working full time jobs, The Coconut
Tree was born.

We aim to deliver the best Sri Lankan street food, sweet and fiery Cocotails served with warm hospitality,
in a stripped back ‘street style’ interior with great tunes.

We have opened in new territories where we will aspire to serve the very best Sri Lankan Street food
and innovative drinks. ‘Cocotails’ are our signature serve, served in ceramics made by hand in Sri Lanka,
with lashings of our Sri Lankan spirit made from coconut flower nectar.

We think of our customers and everyone working at The Coconut Tree as our extended family, we want
to bring everyone a taste of our warm Sri Lankan hospitality. You’ll often hear that ‘everyone is welcome
to the table’ just like at home.

Source: https://www.thecoconut-tree.com/
Scenario
The Coconut Tree are looking to expand their growing, successful restaurant and bar franchise by
opening a new restaurant in the popular area of Ashton Lane, Glasgow.

Before the restaurant / bar opens, the company are seeking advice on several of the operational aspects
and require input on decisions and recommendations regarding Service Quality and People in
Operations, Capacity and Demand, Service Design and Technology and Supply Chains and Sustainable
Operations. Based on your knowledge and understanding of these topics which you have gained from
studying the Service Operations module, you have been asked to provide some insights on a consultancy
basis.

Please see the Assignment Brief for detailed information on the advice required. Please also read the
below information about The Coconut Tree as it will help with your application and recommendations.

Figure 1 – Floor plan of the new restaurant / bar


Restaurant / Bar Information
The above diagram (Figure 1) shows the general floor plan of the new restaurant and bar. The entire
area is 4000 square feet in size. The restaurant area is approximately 2000 square feet. The restaurant
has 10 small tables which seat two people (20 people), 5 medium tables which seat 4 people (20 people),
and 5 large tables which can seat up to 10 people (50 people). So, their maximum capacity for the
restaurant at any one time is 90 customers. The bar has a maximum capacity of 20 customers.

The restaurants opening hours will be Monday to Sunday between 12 midday and 12 midnight. Across
the working week the staff requirements are:

Kitchen - 7 staff, who work shifts between 10am to 6pm and 1pm to 9pm.
Bar - 5 staff who work shifts between 12 midday to 8pm and 4pm to 12 midnight.
Restaurant - 10 staff who work shifts between 12 midday to 8pm and 4pm to 12 midnight.
General - 2 managers who share the running and operating of the restaurant over the week.

Although the kitchen staff only work in that section, staff who work in the restaurant and bar are
expected to be able to work in both areas as and when required.

Branding
The existing restaurants in the Coconut Tree group have consistent and strong branding. To them the
warm Sri Lankan hospitality and family feel is very important. They pride themselves on the stripped
back ‘street style’ interior, combined with great tunes. The chosen décor, furniture, and crockery, and
glasses etc should therefore be in line with this laid back, family feel. Staff are expected to wear branded
t-shirts. In addition to skills required in their area of work, they are also expected to deliver a friendly,
fun customer service.

Food / Menus
Although the restaurant / bars pride themselves on a relaxed atmosphere, they do not compromise on
quality. This is demonstrated in the ingredients they select through to the customer service provided.
Suppliers for the restaurant tend to be local to each venue. The Coconut Tree aim to keep their carbon
footprint low, by procuring as much as they can locally. This also supports their high-quality menu by
using fresh ingredients and ensures good working relationships with local businesses and communities.
Considering growing consumer trends, The Coconut Tree offer substantial vegan and vegetarian options
alongside their meat dishes. They also offer plenty of alcohol-free beers, spirits, and ‘mocktails’.
Long Term Vision / Goals
The Coconut Tree restaurant group want to continue to expand their business by opening more
restaurants. However, it’s important to them that they don’t loose sight of the traditional Sri Lankan,
family feel, which is at the core of their business. This may prove challenging as the company grows; but
the team are adamant that through strong, consistent branding, an emphasis on high quality food and
customer service, and a clear and well communicated strategy this can be achieved. The company are
also keen to be involved with local communities and charities. Some of their existing restaurants have
already engaged in campaigns such as #endfoodpoverty, which led them to offer free meals for school
children outside of term time. The Coconut Tree want to explore more ways that each restaurant can
help address pressing societal issues relevant to their locations.

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