Case Analysis Of A Restaurant

Submitted By simransahota
Words: 679
Pages: 3
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I. PROBLEM STATEMENT
Who: (names and positions)
Jamie Kennedy
What: (key issues)
Jamie Kennedy is faced with the dilemma of meeting increasing consumer demands while still maintaining his core beliefs of sustainable, local food sources and fair supply chain management (Sourcing)

Why(Root causes):
Growth needed to reduce unsustainable consumption patterns
Commitment to sourcing local, seasonal items
Social advocacy is hard to reconcile with high cuisine
Cannot balance image of high class restaurant while remaining icon for social responsibility

When: (Timeline)
Within the year (When he wants to open farm restaurant)

II. ANALYSIS
Application of course concepts, models, theories:
a. Performance :
- JK Gross margin is larger than traditional restaurant demonstrating the potential for growth in this niche market
- Customers waiting up to two hours for a seat at the wine room indicates high brand loyalty
- Creation of many socially responsible organizations
- Some controversial stances on issues (pasturized eggs) this could result in consumers viewing JK as a rebel/trouble maker and result in decreased demand

b. Strategy - Kennedy is seeking to differentiate himself from imitators who source sustainable/organic foods through (Porter’s ) He does this by not only sourcing sustainable foods but also by having a seasonal menu that consists of in-season ingredients sourced locally. He also provides knowledge to consumers about which foods are unsustainable and why (Endangered fish alliance)
- Kennedy trying to close the supply chain loop by controlling his resources by growing them himself. This raises questions over the effects on stakeholders and if his farm can support the growing demand/expansion

- Jamie is a leader and Pioneer within the sustainable
Restaurant business. As well, he strives to have
Educated employees who are capable of passing
Their knowledge onto the patrons of the restaurant
(Value based Leadership)

III. DECISION CRITERIA
Maintains socially responsible corporate image
Supply chain (Other stakeholders) not negatively affected
Fosters growth

Alternatives:
1) Focus energy on creating farm (Closed loop supply chain)
2) Move production kitchen off site
3) Expand Wine Bar
4) Do not expand

EVALUATION OF ALTERNATIVES: 1) By focusing energy on creating a your own closed loop resource independence, you are essentially removing local suppliers from your supply chain and not promoting sustainable resources since you are not supporting local farmers. You will still be able to stay true to your organic goals but the large demand calls into question the ability to meet customer needs from one field. Growth is improbable. The increased time commitment also calls into question the ability to remain involved with charities
2) Moving the production kitchen off site to increase seating capacity allowing growth and allow JK to cut his environmental footprint by using
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