Mogolos BBQ
Mongols BBQ Case Analysis
Name: Abayomi Ashimi
Zoila Castillo
Yue Qi
Date: 09/10/2014
Course Number: CBM 639A
Mongols BBQ Case Analysis
Introduction
This case describes the operations of a limited menu restaurant, Mongols BBQ to illustrate the operating system, cost structure, areas of competitive advantage, basic process analysis in a service situation (peak and non-peak hours) and recommendations for future developments. After reviewing the Restaurant Industry Dollar for Mongols BBQ, we found that they have a positive 7.9% net income before taxes which is pretty good as a buffet kind restaurant. More specifically, 97.3% of its revenue comes from food sales, 2.2% come from beverage sales and 0.5% come from other income. In cost field, the two majority costs are cost of food sold and payroll, they are 31.6% and 24.1% relatively. The key factors for making Mongols BBQ successful are:
1. Location. It is located in the busy business and theater district in California, within walking distance of the University of Los Angeles campus. The location is one key element for business to attract more customers to come into the restaurant.
2. Capacity. The restaurant can holds up to 50 people. It is a relatively good size restaurant so customers don’t have to wait too long. Customers go in and could be done in 30 minutes when seated by the tables and less time when seated by the bar.
3. Affordable labor. The restaurant's operational hours are from 11am-2pm and 5pm-10 pm, making it able to limit payroll to 15% of its revenue.
4. Good Customer Service. The Mongols employee charged with maintaining the buffet bar also helped customers choose seasonings since a poor choice could ruin the meal. Therefore, wastage is reduced and customers get the value for their money. Customers tend to come in more often if the restaurant has good customer services.
5. Great food quality. It could be deduced that Mongol
Name: Abayomi Ashimi
Zoila Castillo
Yue Qi
Date: 09/10/2014
Course Number: CBM 639A
Mongols BBQ Case Analysis
Introduction
This case describes the operations of a limited menu restaurant, Mongols BBQ to illustrate the operating system, cost structure, areas of competitive advantage, basic process analysis in a service situation (peak and non-peak hours) and recommendations for future developments. After reviewing the Restaurant Industry Dollar for Mongols BBQ, we found that they have a positive 7.9% net income before taxes which is pretty good as a buffet kind restaurant. More specifically, 97.3% of its revenue comes from food sales, 2.2% come from beverage sales and 0.5% come from other income. In cost field, the two majority costs are cost of food sold and payroll, they are 31.6% and 24.1% relatively. The key factors for making Mongols BBQ successful are:
1. Location. It is located in the busy business and theater district in California, within walking distance of the University of Los Angeles campus. The location is one key element for business to attract more customers to come into the restaurant.
2. Capacity. The restaurant can holds up to 50 people. It is a relatively good size restaurant so customers don’t have to wait too long. Customers go in and could be done in 30 minutes when seated by the tables and less time when seated by the bar.
3. Affordable labor. The restaurant's operational hours are from 11am-2pm and 5pm-10 pm, making it able to limit payroll to 15% of its revenue.
4. Good Customer Service. The Mongols employee charged with maintaining the buffet bar also helped customers choose seasonings since a poor choice could ruin the meal. Therefore, wastage is reduced and customers get the value for their money. Customers tend to come in more often if the restaurant has good customer services.
5. Great food quality. It could be deduced that Mongol