Cheesecake Factory Restaurant Case Study Essay
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Cheesecake Factory Restaurant Case Study Essay
Mini Case: Please read the case below and answer all questions listed below the case The Cheesecake Factory restaurant known for its extremely generous portions has one of the most massive and varied menus in the industry. Over 300 dinner items and 20 choices of beverages line the huge menu that will take you awhile to get through. The Cheesecake Factory serves more than 100 million people every year, has over 45,000 total staff, and is listed as one of Fortune ’s 100 “Most Admired Companies.” How can the restaurant manage all these items, people, and customers so effectively? Part of that answer lies in the way in which the company is structured. One reason the restaurant is so popular is its consistency. Chuck Wending, a VP of performance development, says, “We want someone to eat at a Cheesecake Factory in Las Vegas and another somewhere in the world and be able to have the same experience.
On a periodic basis, each restaurant is evaluated by ‘mystery guests’ who are trained to evaluate service, food, and experience based on a standardized format.” The Cheesecake Factory has an efficient, hierarchical (high number of layers) structure that is designed to focus on its products and services. Everything that you see as a customer has likely been double and triple-checked before it ever reaches your table. Kitchen and restaurant managers are constantly giving feedback to cooks and servers anytime they see something that doesn’t seem exactly right.
While you might think this sounds like employees need to be robots to thrive in such a system, Cheesecake Factory employees don’t feel that way, as evidenced by its turnover rate which is 15 percent below the competition. In addition to efficiency, one thing a hierarchical organizational structure can also provide is a clear career path. Something you don’t see as a diner is that many of the restaurant’s managers have been promoted up through the ranks. This not only provides motivation for workers at lower levels (in addition to good salaries, the company gives every manager a new BMW every three years), it also encourages managers to respect that underneath them.
The Cheesecake Factory is one of the fastest-growing restaurants in the world. Over the last 10 years, the company has more than tripled its sales to over $2.5 billion and quadrupled its restaurant locations from 41 to 175, which includes a number of international locations such as Dubai, Kuwait and Saudi Arabia. As it grows so fast, a number of core issues rise to the top—such as how does it maintain the level of service guests have come to appreciate, but yet still control costs? Chuck Wending, VP of performance development, says, “One of our biggest challenges is the notion of how to get big, but remain small.” The restaurant wants to be able to take advantage of all the efficiencies of scale that come with size, but it doesn’t want you to sit down and feel like you are at a McDonald’s.
The Cheesecake Factory has two big costs to control and manage—groceries and labor. The grocery issue is accomplished partly through what it calls call “guest forecasting.” Dan Gordon, the company’s COO, says, “We have forecasting models based on historical data—the trend of the past six weeks and also the trend of the previous year.” The company can predict food needs ahead of time with staggering accuracy based on a number of factors including things like weather and sporting events.
This allows the restaurant to have an average efficiency rating of 97.5 percent. What does that mean exactly? It means that its managers aim to throw away no more than 2.5 percent of the groceries they purchase without running out of the food that customers will want at any given point in time. Labor is not that different. The Cheesecake Factory has worked out a staff-to-customer ratio that keeps everyone working efficiently, but still leaves room for unexpected large groups of customers. Although it is 15 percent below its competition when it comes to turnover, it still runs at about a 90 percent annual rate. Needless to say, this makes training new employees a huge issue.
Like everything else, the restaurant tries to be as efficient as possible and is using what it considers to be the cutting edge of efficiency—creating computer games for training purposes. For instance, the restaurant has built an iPhone app that teaches employees how to make “glam burgers.” To compound the new employee problem, the Cheesecake Factory changes its menu every six months. One recent menu shift resulted in the addition of 13 items. That doesn’t sound like a huge amount until you think how many people have to be trained to cook those items to perfection every time. The restaurant wants the new menu rollout to take no more than seven weeks start-to-finish.
The company starts by bringing in regional managers and kitchen managers for training. These managers not only learn to make the new items, they also learn how to teach others to make the new items. The information is passed down with surprising efficiency. Questions: Part I: 1. A. Based on what you’ve read, would you say the Cheesecake Factory has a centralized or decentralized structure? Give at least one justification to support your choice. (5pt) B. Explain how this made the Cheese cake factory successful? Give at least two justifications to support your explanation. (6pt) 2.
What aspects of the Cheesecake Factory’s business do you think are helped by becoming larger? State and discuss at least two aspects. (10pt) 3. Would a matrix structure suit Cheese cake factory employee? Explain your answer. Give at least two justifications (5pt) Part II 4. A. Explain in which stage of the ‘Five stages model of group formation’ group member can get stuck? Give one suggestion of how to avoid it. (5pt) B. Explain situations where punctuated-equilibrium model is appropriate to use. (4pt) C. Explain the advantages of small groups and large groups? One advantage for each group (4pt) 5. State the behavioral consequences of stress. (5pt) 6. Compare and contrast challenge stressors and hindrance stressors. (6pt) 7. There are various ways in which employees express resistance to change. Is all change resistance negative? Why (5pt)
Cheesecake Factory Restaurant Case Study Essay
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. 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Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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