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˜ Labor intensive, low risk and low technology operations
˜ Wait time of 105 seconds
˜ Primary operation focus on product preparation and consistency
˜ Footprint of restaurant : 70% kitchen & 30% dining
˜ No drive through windows for car owners
˜ Single line assembly organization
˜ Great deal of restaurant management time focused on product preparation and
consistency
˜ No drive through windows
˜ No time with RM and ARM for Customers
˜ High Pressure Workplace
˜ Operations Responsibility not with crew
 
 
  
u Crew
u Received task specific Training
u Used Simple Production Systems which were Boring
u High Crew Turnover
u Regional Manager
u Responsible for meeting company standards regarding
restaurant and crew cleanliness, timely delivery of food,
food quality, cost of food and labor
u RM turnover also high
 
 
  
u àistrict Manager
u Played the role of policeman
u Little time spent on coaching or developing RMǯs
u Each district manager had an average of six RMǯs
u High basic pay with a small variable component
u Area Manager
u Each area manager had an average of five district manager
u Zone àirector, Operations
u Vice President Operations
u Vice President General Manager
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˜ àrive through windows, consumer rather than
product focus, increased seating capacity, new
signage introduced
˜ Penetration into new markets throughout USA
˜ Electronic point of sale systems
˜ Perpendicular double line assembly line
˜ Reduction in employee turnover by increasing
takeaways, better training and job satisfaction
˜ Introduction of management information systems
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u Innovative products cause reductions in kitchen
efficiency
u Increasing labor and real estate costs in market cause
large spending in expansion
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u Focus on value: Quality and Price
u Move towards FACT
u F : fast food FAST
u A: fast food orders ACCURATE
u C: clean restaurant
u T: fast food at appropriate temperature
u New pricing strategy
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u New space config : 70% seating area & 30% kitchen
u It allowed
u Managers to focus more on sales and services
u Consistent food product all across
u Reduced size of kitchen
u àecrease in labour costs
  

u SOS intended to reduce waiting time and reformulate
certain recipes
u Reformulated certain recipes
u àeveloped heat holding area ( staging)
u Able to inventory 60% of its menu items ready for
immediate sales
u Led to
u increased peak hour capacity by 54%
u decreased customer waiting time by 71%
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˜ Total Automation of Company Operations
˜ MIS project : computer in each store
˜ Reduced paper work
˜ provided support and communications function
˜ Provided reports on
˜ Food cost, labour cost, inventory, perishable items and
period to date costs with variances
˜ 46 relevant data on store operations
˜ Helped labour scheduling and production planning
˜ Tracking sales info and forwarding to central computer
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˜ Intends to make restaurants self sufficient
˜ Successful ARGMs identified, trained and passed
through testing , interviews etc to get selected to
RGM
˜ Training focused on management as well as
production skills
˜ Supposed to apprentice in restaurants to learn all
aspects of food preparation and hands on knowledge
of management
˜ Newer and better compensation package
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u Responsible for 20 restaurants
u Highly talented people recruited for the post
u Main job to recruit candidates for RGM
u High compensation package
u TACO made work easier and faster with highly customized data giving
snapshot of financial condition
u Responsibility increased Ȃ 20 RGMs under a market manager
u Management style : Management by exception
u Role :
u Working with individual RGMs on solving problems or building sales
u Selecting the kind of person they want to be RGM
u Skills Needed : Fortune 50 Company experience
u High variable component in compensation
  

u Toll free numbers for customers to comment on
restaurants
u Mystery shoppers to rate specific quality issues
u Market surveys or customer intercept programs. This
was later stopped
u Toll free numbers for employees to call anonymously
 
 

u Increased profitability
u Increased sales
u àecreased turnover
u Cost variances declined
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u To have 10, 000 RGMs
u Increasing sales and returns by developing POàS
u àecrease cost of goods sold to 25%
u Create alternate distribution sites