Hardees vs Fri Chicks Essay Example

Cheese, Santa Fe Chicken, Buffalo Chicken, Chicken Stars and many more. Hardee's outlets retain the family-style enjoyment concept and offer a casual dining environment complimented with other mouth-watering menu items like Natural cut Fries, Crispy Curls, Desserts and Beverages.

All in all the different varieties of Hardees Thick Burgers have found a new peak in their reputation as affordable prices and local popularity make it a hot spot for company lunches and birthday dinners. Founded by MDS Foods: MDS foods are a subsidiary of Super Asia Group and operate its food division. Super Asia Group was founded in 1975 by Mian Muhammad Din at a very small level. Today, it is a conglomerate of companies with diversified range of businesses mainly Home Appliances, Automobiles, Insulation and Packing Materials and Fast Food Burger Chain of “Hardees” (a brand name of CKE Int.USA), serving every sector of society. The first Hardee's restaurant in Pakistan opened at M. M. Alam Road, Lahore in 2009. We have since grown to 3 locations with more than 12 Hardee’s restaurants to be developed over the next three years by MDS Foods Pvt. Ltd. coming soon. Hardee's is known for our Hand-Scooped Ice Cream Shakes and charbroiled 100% Beef Thick burgers. The core strengths of the Hardee’s brand are our premium quality, best-in-class menu, premium service and delivery systems, premium facilities, innovative menu offerings, youthful brand image and edgy, “cut-through” advertising.

Our value proposition for consumers is based on offering authentic, premium quality American Style burgers at a price that consumers are willing to pay for better quality, better service and better hospitality in a premium Quick-Service Restaurant (QSR) environment.

We offer “made fresh to order” products, partial table service, all you can drink beverage bar with free, unlimited refills and the best quality products in our segment. At Hardee's, we concentrate on being the best versus being the biggest, delivering premium products and the ultimate dining experience to guests.

Concept and Format: Supplying the highest quality food to the customers is a core focus for our brand. Our burgers are made with 100% Pure Beef and are charbroiled, cooked on an open flame, sealing in the flavorful charbroiled tastes and delivering juicier burgers. All products are “made fresh to order” using the highest quality ingredients, delivering the freshest, best tasting products imaginable. That is why Hardee’s is known as the ultimate destination for burger enthusiasts, who crave big, unique, delicious burgers and other sandwiches. Performance Objectives: Quality:

This provides the world class facility and taste by importing its main ingredients from Saudia Arabia and U. S. A but other ingredients from local vendors. Hardee’s provides Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed. Gives extra classes to kitchen assistants in order to meet the quality standards set by Hardee’s.

Speed:

• We will aim to provide you with your ordered Products as close as possible to your requested delivery.
• While there cycle of making one burger is only 3. 5 minutes and in 3. 5 minutes your order will be on your table. Requirement of time is same for chicken and beef both verities.

Dependability:

• In excess pressure order depend on supply.

Flexibility:

• People can order sandwiches and burger according to their taste either in chicken or in beef.
• There
  

is flexibility that everyone can enjoy soft drinks according to their taste and need they can enjoy drinks as much as they need.

Cost: To compensate an increased cost, they maintain a local supply chain to reduce the cost like vegetables, tomatoes, fruits, spices, chicken and beef.

Better quality leads to high cost so target market of Hardee’s is also upper middle and upper class. Management structure: In Hardee’s there are 5 departments which are as follow:

1. HR department

2. Marketing department

3. Business development department

4. Operations department

5. Finance department

All these departments cooperate with each other to accomplish the overall goal of the company. The managers of all these departments perform their duties and manage their team’s according to work load. Some important information and role of mangers in these departments are explained below.

Managerial Flow Chart of Orders: Human Resource Department: The Human Resources Department is split into several functions, which aim to support the overall business with a real ‘Passion for People’.

These functions include the following: The Training ; Development Team: This team aims to support and develop team members to their fullest potential, using various programmers such as the Expert training programmed, as well as the Developing Champions training programmed for all levels of restaurant management.

In addition we invest heavily in the further development of our management population through core and fast track management development programmers and specific technical training. The Recruitment Team: The Recruitment Team is split into two separate teams, one recruiting for management positions within the

restaurants and the other recruiting for positions within the Restaurant Support Centre. Both teams work to recruit the right people into the right positions.

The Compensation; Benefits Team: This team aims to provide all Hardee’s employees with a comprehensive and competitive benefits package, including; fair pay, bonus, health care and pension. The team also works to produce HR policies and procedures as well as managing HR information.

The HR Operations Team: This is dedicated generalist HR support for the Managers and Team Members working in the restaurants. This team is separated by regions, and aims to support our employees through manpower planning, district compensation and benefits, employee relations, welfare advice and the further development of Customer Mania.

The Organizational Development and Communications Team: This team focuses on business communication, organizational development and change. It also aims to support and develop team members to their fullest potential within our Restaurant Support Centre.

Structural Strategic Decision: New Product: A key part of Hardee’s success has come from product innovation. The new product Development Team runs focus groups with customers to generate ideas for new products. These ideas are then turned into concepts that are then put in front of a customer panel to see how exciting they are.

The best concepts are then transformed into actual products ready to be tested by customers. If a product proves popular then it will move into the next stage of the marketing process. Service Design: To ensure stringent international bench-marks in the quality of products and services at all its restaurants across the world, Hardee’s has a proper program in which an official visits a

restaurant and evaluates it on certain defined parameters called C. H. A. M. P. S. that stand for Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed.

Based on the report submitted by the official, the restaurants are rated and in the rare case of finding under performers, they are kept under strict vigil. Facility layout: Facility layout is Arrangement of all machines, utilities, employee workstations, customer service areas, material storage areas, restrooms, lunchrooms, internal walls, offices, and for the flow patterns of materials and people around, into, and within buildings Infrastructure services such as the delivery of line communications, energy, and water and the removal of waste water all make up basic utilities.

Internal layout of Hardee’s: Internal layout of Hardee’s Franchise is not most attractive and charming in the Defence Lahore. Good sitting arrangement, trained employees and their proper work division, speedy ; appropriate cooking processed are the chief characteristic of the Hardee’s. Layout Map: Hardee’s use process layouts because of variability in customer processing requirements. The Hardee’s process schematic diagram are presented blow. Design layout: In Hardee’s’ also layout designing is a very important operation.

A proper layout of the equipments in the kitchen is very essential to ensure preparation of quality food in less time. It also designs its layout keeping in mind the health and safety issues. It also designs layout in such a way that needs of supervision is minimised. Another factor that is considered is the cost of production which also depends on the layout. Why is good design so important? Good design is long lasting. Good design is environmentally friendly. Care and accuracy in design

shows respect toward customer. Good design satisfied the customer Good design enhance profitability Designing: Design is created on the base of the product objective. Design is a general shape that we make before making of anything. When we see the design of Hardee’s we find that design is made according to the customer requirement, proper use of space, entry, exit and environment is neat and clean, LED is also provide for customer entertainment and washroom is also in cafe. I think that design is proper made according to customer requirement they do not have to move anywhere for anything all things are available to them under one roof.

Make to stock strategy: This strategy is about forecasting demand to determine how much stock should produce. Staff know the daily demand of customer and produce food according to demand. The big advantage to Hardee’s is their remaining food cannot waste because they supply their food seeing their orders. Infrastructural decisions: Job design: Job designing is also an important operation in Hardee’s. Each employee is designed a particular set of jobs, some team members cook food items in kitchen, some team member work on the counter, while others look after the customers in the sitting area.

Also there are employees who manage all team members and look after overall wellbeing of the Franchise. While designing these jobs the technical, economical and behavioural feasibility is taken into consideration. Process types that are implemented in Hardee’s:

1. Jobbing Process
2. Batch Process
3. Mass Process
4. Process technology

Jobbing process: Jobbing processes are used to make a one-off, or low volume, product

toJobbing process is used to make a one-off or low volume, according to customer requirement. Ingredients are being moved toward transforming esources such as equipment that are converting them into final product. A high variety of products are generally produced, but at a lower volume. In Hardee’s the products are moving in kitchen toward different equipment to make the product according to customer specification. One of the key advantages of jobbing processes is that they lead to product variety. Because resources are allocated to a variety of product at the same time, the end result will be more than one product. Another advantage of using jobbing process is that it’s providing you with great deal of flexibility as to what you can produce.

In Hardee’s the flexibility is high because they have the ability to change according to demand of customer and fulfill their demand in less time. In jobbing process the equipment relies on the knowledge of worker how they use them to produce high variety if the staff is skilled they used it wisely and produce high variety of food just like in Hardee’s the staff is providing variety of product. Batch processes: Batch processes is that which treat batches of products together, and where each batch has its own process route. In Hardee’s they are making standard products according to the standard set.

They are making that dishes which have more demand on daily basis but they make changes in them. To make changes in the dishes there is a need of highly skilled staff to make dishes and Hardee’s has a highly skilled staff. They make changes in their

dishes to create the interest of the customer if they do not do this customer move to other Place and they lose their customers. Mass processes: In kitchen, Hardee’s used process layout so mass process is used in Hardee’s because large quantity products always used process layout.

Hardee’s make food on mass processes because they make food on bulk or in large quantity because their food is not specially for restaurant they also distribute their food in different places of Lahore. Hardee’s used mass process in making food. Quantity is large in number because they have no fair of wastage. They always make food according to orders. So there is no chance for wastage of food. Process Technology: Now a day’s technology is improving so Hardee’s has to keep track with it or else its competitor may take advantage of it and move ahead than Hardee’s.

It makes sure that it uses baking and heating ovens that are new and efficient. They have tie ups with company which provide them cold rooms. This tie up is of exchange of machine after a period of 6 months if new kind of machine is made by them. Not only in machines and equipment but also in marketing they try to be updated. They use internet, billboards advertising for their promotional activities. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making. Planning and Control:

Few of the objectives of supply chain management in fast food industry are mentioned underneath; Supply chain planning: This sets the chain direction and the strategies associated with

all the aspects of supply chain. This is the overall sketch of the supply chain. Procurement: This is the process of selecting a supplier and managing healthy and profitable relation with them. This also helps the organization maintain quality of their products. Inventory management: This process helps the organization maintain right level of stock in the organization and eliminate stock outs with variation in demand for the product.

Packaging: This is a discipline that helps in ensuring right package design and reducing the cost by encouraging the recycling process of packaging. Warehousing: This is the process of storing the raw material, semi – finished and finished goods. Effective storage and correct warehouse design can reduce the overall cost of the product (eliminates transportation cost to a certain extent) and improve the availability of the product. The other factors in this discipline are safety of the product, storage methods and locations of the warehouses.

Transportation: This process refers to transportation management of goods. This includes all the possible modes of transferring goods from one location to another. The records maintenance is also included in this aspect. Logistics: This is referred to the use of technology in maintaining all the disciplines of supply chain effectively. The use of software is a trend in logistics management (CRM software). Inventory: Supply chain manages the entire materials from suppliers (Suppliers of raw materials to the organization) to retailers and distributors to the customers. There are various disciplines involved in this system.

For example the supplier relations management, inventory management, distribution system, retail management, reverse supply chain management. It has been observed that action in one discipline can

influence the performance of the whole chain and similarly the performance of the organization. More and more organizations / industries are identifying the significance of supply chain management. In terms of research there are three most researched issues in the whole supply chain management, they are:

• Information flow through supply chain
• Inventory / warehouse Management
• Operations Management (queuing system)

The fast food industry is one of the most competitive industries. The competition majorly depends upon price, quality and service (which are core aspects of Supply Chain Management). Hence there is immense pressure on all the organizations in the fast food industry to keep the three aspects studied above to their supreme best. As fast food industry is one of the most emerged industries in the recent past, the supply chain has seen huge transformations in this industry. The industry is still emerging so as the transformations in the supply chain management of this industry.

Hence this study helps the learner identify and understand the factors driving change and the factors influencing the supply chain performance. Hardee’s needs to co-ordinate all the suppliers of vegetables, chicken and bread and work in coordination with them. Keeping this aspect efficient is the key success factor of Hardee’s. As we know that if an organization can manage its core competencies effectively they can surely act as competitive advantage for the company. As the ingredients for various products of Hardee’s are acquired through various suppliers from different parts around the globe.

There has to be proper communication to keep the supplies and demand under check. In order to keep this aspect

effective the company has employed Total Quality Management (TQM) process. The strategic policy of Yum! Brands involve the suppliers to understand their role and impact in the overall performance of the organization. This keeps the supplier relations management aspect in place for the organization. Supply chain: Supply chain is the term used to define the parties involved in the process of meeting customer demand. The parties involved in the supply chain are as follow:

• Suppliers Manufacturers / producers
• Distributors
• Retailers

Customers Suppliers: Suppliers are a significant party in the supply chain. The raw materials are supplied / acquired through this resource. In terms of quality of materials / products the suppliers are held responsible. The price of the product depends upon the price of the raw material as well and the supply of raw material will influence the company’s ability to meet the customer demand at the right time. Hence we can say that suppliers have a great impact on the price of the product and company’s ability to meet the customers demand on time.

Manufacturers / Producers: These are the members who convert raw materials / semi-finished goods to finished goods. The production process is significant as the company judges the quality and attributes of the process in this phase; hence manufacturers also influence the quality of the product.

Distributors: These are people who are responsible to make the product reach to the market (retailers). The distributors can be also termed as marketing intermediaries. There are various aspects associated with marketing of a product and choosing the right distributors.

The reach of the distributor will always

be directly proportional to the availability of the product in the market. Retailers: These are people who are at the end of the supply chain. In other words these are the people who sell the product to the customers (supermarkets, stores etc). They are one of the significant members in the supply chain as they are in direct contact with the customers. They represent the product on behalf of manufacturer to the customers. The demand and customer feedback can be analyzed at this level. Customers: These are the end users of the products.

Customers were not considered as a part of supply chain, but the contemporary methods and study has added customers into the supply chain. The significance of these parties in the supply chain varies in context to industries. Supply chain management is a discipline that manages and controls the flow of information throughout the various departments to meet the customer demands. The supply chain starts from the extreme beginning of the manufacturing process i. e. acquiring the raw materials from the suppliers or in other words choosing the suppliers and ends at the extreme end of the production process i. e. he customers.

Inventory Control Management Inventory size: This helps the organization decide the amount (size) of inventory to be ordered. This is one of the significant aspects in the fast food industry as this helps the organization not only order the right quantity but also meet the customer’s needs with minimum resources possible. Replenishment Lead Time: This refers to the time between placing an order and acquiring the raw material. Usually lead time is always considered as an entity that

makes the supply chain ineffective (loss in supply chain). Stock outs: Stock outs are very common in every trade.

This is a situation that arises due to miscommunications in supply chain parties, lack of analysis, bad demand and sales forecasting. Safety stock: This is the excess stock that a firm maintains to manage demand fluctuations. The safety stock is maintained at the lowest levels as most of the firms are efficient in sales forecasting. Reorder Point: This is a point in inventory levels wherein the firm feels the need to order more inventories. Qualifying Our Suppliers Hardee’s suppliers are selected, assessed and rewarded through the Supplier Tracking and Recognition (STAR) system.

It is a rigorous, industry recognized audit system that sets and monitors standards for all of our brands’ key suppliers. All of our restaurants, regardless of their ownership structure or location, must adhere to our strict food quality and safety standards. The guidelines are translated to local market requirements and regulations where appropriate and without compromising the standards. In selecting a supplier we look for key performance indicators around pest control, sanitation, operations and facility management, good manufacturing practices and product protection, recovery and food security.

In addition to measuring and testing food safety and security practices, we look for outstanding performance in quality control, not just of our product formulations, but in suppliers’ management processes as well. Hardee’s suppliers are classified by food safety risk from one to four; Class One is highest risk and Class Four is lowest. The categories are determined by a combination of scientific validation of risk and our experience with the product. Improvement: A key

part of Hardee’s success has come from product innovation. The New Product Development Team runs focus groups with customers to generate ideas for new products.

These ideas are then turned into concepts that are then put in front of a customer panel to see how exciting they are. The best concepts are then transformed into actual products ready to be tested by customers. If a product proves popular then it will move into the next stage of the marketing process. Material Management: Since Hardee’s has most of its inputs (vegetables, cheese, topping sauce, imported vegetables) perishable, it has to be stored at a particular level of temperature. This is done by Restaurant Support System of Restaurants. Whenever the things are taken from their Bills are issued to a particular utlet and these bills are paid monthly. This has reduced loss due to spoilage by a great extent. At the peak hours they prepare themselves few hours before. All team members are prepared before peak hours with vegetables required for toppings. They follow PREP strategy for peak hours.

Quality Management: Quality in Hardee’s is very important because of two reasons. Firstly because of the legal requirements of the quality of food served. Secondly, to keep up the good reputation which McDonalds restaurants have earned over the years.

Quality of food can be very difficult to maintain and therefore Hardee’s carry on a number of practices to make sure that quality food is served. Some of these practices are the visits by the food inspector from the head office, supervisor checks etc. SWOT Analysis of Hardees:

Strengths:

• Differentiated product charbroiled burgers.

• justify;">State of art technology for quality product.

• Youthful and attractive brand image
• Premium five service.
• Extensive hospitality(GRO)

Weaknesses:

• No breakfast option.
• No website for hardee’s Pakistan
• No prize listing on brochures.
• Insufficient parking space
• No home delivery service.

Opportunities:

• Nutrition descriptions with in menus
• Expansion in other areas of Pakistan.
• Diversification.
• Cost leadership
• Product and development expansion

Threats:

• Political legal instability
• Economic slumps
• Force majure
• Burger king arrival
• New entrants with even facilities yet cost effective Fri-chicks Pakistan local food chain.

Introduction Frichicks is a local fast food chain started their work in Lahore from 2003 and they are running their business through six branches in Lahore in the following areas:

1. Allama Iqbal Town

2. Sabzazar

3. Faisal Town (Akbar Chowk)

4. Johar Town (Near G1 Market)

5. Sadar (Cantt)

6. Fortress Stadium Fri-chick is offering take away facility, dine in and home delivery service. They have several deals with the normal price rate.

Major Competitors: The major competitors for Fri-Chicks are:

1. AFC

2. KFC

3. Mc Donalds

4. Pizza Hut Performance

Objectives: Quality: The food quality of Fri-Chicks is good as compared to other fast food chains of Pakistan. If we compare Fri-chicks with the quality International fast food chains like Hardees, KFC, or McDonald then they have to do a lot of work. They try their best to maintain a good environment because every class of people visits Fri-Chicks.

Speed: Because of high rush of orders they have to maintain their speed of work. The running items of Fri-chicks like Karizma Burger and Fried Chicken pieces they make a bulk quantity of their running items so that customer

don’t have to wait for their order. Other items like Pizza, Ragge burger, rice etc they make them on order and customer have to wait 10 min or more. They also do free home delivery they take 45 min to deliver food to your home.

Dependability: They make their own products they are dependent on their supplies of their venders. Flexibility:

• You can check your order confirmation on call You can edit you order within 10 min on call
• You can make your deal upsize
• They offer you dine-in, take away and home delivery services.

Cash on delivery Cost: The costs of their products are very economical. Their target market is upper lower, middle, and upper middle class so that everyone can afford their products.

Management structure:

Support Manager: The Support Manager is part of the management team and will help run our business by either managing shifts or working as a key team member. The key skills required for this role include flexibility, communication, leadership, and teamwork and customer service.

Branch General Manager: The General Manager has a responsibility for the running of the restaurant, managing the business as if it were their own: managing the financial side, product ordering, production, quality monitoring, customer service and training and development of staff. Restaurant General Managers can progress on to become Area Managers who manage ten restaurants or more. They can also work on second mints at the Restaurant Support Centre in IT, Training, Marketing and Human Resources. Supply chain: Supply chain is the term used to define the parties involved in the process of meeting customer demand.

The parties

involved in the supply chain are:

• Suppliers
• Manufacturers / producers
• Distributors
• Retailers
• Customers

They provide quality food and provide with a number of services to make their customers happy. Fri-chicks as a local (Pakistani) food chain also provide good food but not as good as of Hardees. Distribution of Fri-Chicks is better than Hardees as they are local, they have more knowledge of customers as compare to Hardees. They also provide free home delivery while Hardees did not provide any kind of home delivery. Thus both of the food chains have some good and some bad points but both are performing well in the areas of their respective target markets.