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OPEP: Improving the quality and efficiency of fast food restaurants

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MAY 20, 2011

Improving the quality and efficiency of fast food restaurants

Fast food restaurants are unique operational
systems designed to provide customers with
efficient and responsive services. Such systems
consist of three interdependent subsystems: input,
processing and output. The success of the
operational system of a fast food restaurant is
directly related to the degree of co-operation and
co-ordination among these three subsystems. Any
attempt to improve the efficiency, quality and
responsiveness of the operational system must
focus on these subsystems and their interactions.

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The fast food service industry is becoming increasingly multifaceted and extremely competitive. In
such an environment, restaurant owners and managers are finding themselves hard to face a two faced
problem. On one hand, sales are slowing down and operating costs are increasing. On the other hand,
customers are becoming more demanding and increasingly selective of the types of services they
receive. These two factors combined with others are presenting restaurant managers with a special
challenge, how to maintain profitability in a shrinking market while providing the sophisticated
customers with high quality and efficient services. In achieving this seemingly impossible objective,
fast food restaurants can pursue two strategic avenues. First, they can focus on means to improve
operational efficiency of the system. Second, they can take actions to enhance the operational quality of
the operational system.
Specific tactics geared to the first strategic option include improving inventory systems to reduce the
cost of materials handling and waste, measures to reduce food service costs through better menu
management, and ways to increase labor efficiency by cutting labor costs through better scheduling.
The second strategic option that stresses means to
enhance the operational quality of the input,
processing and output subsystems includes use of
quality control measures to monitor the quality of
incoming material, work-in-progress and the
output. It also underscores the importance of
understanding the needs and attitudes of customers
and the adoption of technological and marketing
innovations to provide customers with high quality
services.
These two strategic orientations are not mutually
exclusive. However, in the fast food industry there is a misconception that high quality compromises
efficiency and that, from a bottom-line point of view, a quality orientation cannot be justified. This
misconception can be attributed to a lack of understanding of the interdependency among the three
http://opepiimraipur.blogspot.in/2011/05/improving-quality-and-efficiency-of.html

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2/19/2015

OPEP: Improving the quality and efficiency of fast food restaurants

subsystems of the operational system in relation to operational efficiency and quality. This lack of
understanding coupled with the myth that quality costs money impede measures to enhance quality and
efficiency of the operational systems of fast food restaurants.
Aniket Choudhary is a PGP student of Indian Institute of Management, Raipur. He has done his B.E. in
Mechanical Engineering from College of Technology and Engineering, Udaipur. Aniket can be reached at
aniketchoudhary87 at gmail . com
Posted by OPEP IIMRaipur at 5/20/2011 09:25:00 pm

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Labels: Aniket Choudhary, Fast Food, Fast Food Restaurant, high quality, IIM Raipur, inventory costs, Inventory

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3B 27 October 2012 at 14:12

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Fast food franchises focus on low cost,high volume and high speed product.Fast food industry is large
and diverse industry with plenty of opportunity.new creative ideas and innovative recipes helps for
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consumers back in,Because consumer always look out for new ways to eat fast and healthy..very nice
information shared in this blog.I appreciate for this great writing Industry Analysis

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QUALITY SERVICES 7 November 2013 at 14:46

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Rossy 20 February 2014 at 10:26

Thanks for share the blog!!!interesting and informative blog!!!i liked your blog!!! Indian Fast Food
Restaurant
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guinegag 31 October 2014 at 15:39
Nice blog! Actually one of my friends is also involved in business of Las Vegas restaurants. And I think
your ideas can greatly help him for the enhancement of his business. Thank you so much for sharing
this blog here.
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