Hard Rock Cafe And The Service Industry Tourism Essay

During its 39 old ages of being, Hard Rock Cafe ( HRC ) has made its enormous grade as one of the most successful concern in service industry line by turning from one saloon in London in 1971 to planetary graduated table of 129 coffeehouse, 12 hotels/ casino, unrecorded music locales, and a immense one-year Rockfest concert. Serving over 3,500 repasts each twenty-four hours at Orlando-based ( which has been the location of Hard Rock ‘s universe central office since 1988 ) and 100,000 repasts each twenty-four hours over more than 40 expanded locations throughout the U.S, Hard Rock is so demoing the universe what they are made of.

The service mission is to distribute the Sprit of Rock n ‘ Roll by presenting an exceeding amusement and dining experience. The chief characteristics of HRC concern line are retail store ( roll uping closely to 48 % of gross ) and eating houses which provide you glorious menu with qualified providers and production procedure that is designed and maintained to give quality repasts. The bill of fare is besides being modified from authoritative American – Burgers and poulet wings – to include high-end points like lobster dress suits and stuffed veau chops. Another hallmark characteristic of HRC is rock music memorabilia that has started when Eric Clapton hung his guitar on the wall in a London cafe to tag his favourite saloon stool. Ever since so, HRC has become the universe ‘s prima aggregator and exhibitioner of stone N ‘ axial rotation memorabilia with a aggregation of about 1,000 pieces, valued at $ 40 million.

HRC is using a combination of distinction, low cost ( cost leading ) and response schemes to derive competitory advantage. In order to accomplish the competitory advantage and implement schemes the director has to do effectual determinations in the 10 countries of operations direction ( OM ) or operations determinations. These 10 operations determinations are 1 ) Goods and service design, 2 ) Quality, 3 ) Procedure and capacity design, 4 ) Location selection,5 ) Layout design, 6 ) Human resources and occupation design, 7 ) Supply-chain direction, 8 ) Inventory, 9 ) Scheduling, 10 ) Care. Except for those determinations of supply concatenation direction, stock list and care ( some of these determinations are included the goods and service design which has already been mentioned above ) , others can be considered as critical elements for this typical service concern whose merchandises are normally non touchable.

At HRC studies are carried out on a regular footing as a subjective quality criterion to measure quality of nutrient and service at the cafe . With all the pride and repute of HRC, a mark of 7 out of evaluation graduated table from 1 to 7 can be considered as a dissatisfactory consequence and director decidedly has to quickly respond to this. Besides HRC ‘s trade name acknowledgment, at 92 % , which is one of the highest in the universe, can be a good index for quality of service. HRC besides designs it capacity to increase its productiveness by scheduling cafe staff down to 15-minute intervals to run into seasonal and day-to-day demand alterations, for blink of an eye at some tourer location such as Orlando. This is a mark that the response scheme is being good implemented at HRC.

Location is one of the most important factors for a typical service of amusement and dining like HRC. Basically it should hold easy entree to clients, particularly those who want to bask their lives and see new things. Therefore, 70 % of HRC ‘s invitees are tourist, and locations tend to be at tourist finishs. Furthermore, it should besides be located at those exciting topographic points where nightlife tends to concentrate like metropolis centres. However, there are still a figure of other of import classs to see when picking up a HRC cafe location such as transit, political hazard, existent estate marketaˆ¦

Most of HRC are theme eating houses which mean the nutrient normally takes a backseat to the presentation of the subject, and these eating houses attract clients entirely on the premiss or the installation layout of the subject itself. This is where HRC clearly demonstrates its application of the distinction scheme, another beginning of competitory advantage. One of the characteristics that differentiate them from other eating houses is memorabilia which HRC has invested 1000000s of dollars in. The layout characteristic will besides hold to be distinguishable and consistent throughout all the HRC locations and have to guarantee non merely attraction but besides the efficiency of the flow of people.

Human resource section plays a critical function in any service organisation particularly in the eating house industry with the typical employee turnover rate of 80 % to 100 % per twelvemonth. HRC has identified several chief things that anyone will look for when they go to work: cognition, money, work environment and comfortable calling every bit good as regard. HRC organize many preparation classs for everyone – from directors to employees – which all start with the class Rock 101, an initial preparation category. By making this, everyone at HRC is non merely good prepared for their occupations but besides exposed to a new cognition that they may hold ne’er experienced before. At HRC, people are non merely offered a occupation with a good payroll check but besides a comfortable calling in a professional on the job civilization. A starting benefit and regard for a part-timer is the demand to work merely at least 19 hours per hebdomad ( compared to 35 hours per hebdomad at others ) . After that comes go oning developing along with high degree of internal publicities. The grounds of this promising calling is that 60 % of directors are promoted from hourly employee ranks. At the application showing phase, human resource section enlarge the pool of applications by credence of significant diverseness and individualism. These applications are screened on their involvement in their ability to state narrative. The chief hiring standards are bright, positive – attitude, self – motivated. This procedure is to do certain that they will non lose out any suited campaigner that will subsequently on have great part to HRC civilization. HRC is successful in presenting the experience of layout, memorabilia, music, and picture to clients but they are even more successful in addition competitory advantage by developing a good human resource scheme to do the experience become alive with servers and waitresses.

The low cost scheme that aims to utilize human resources ( organisation ‘s plus ) more efficaciously every bit good as presenting service by functioning clients quickly and expeditiously is besides being pursued by HRC in order to derive competitory advantage. The first thing to see about utilizing human resources efficaciously is to safeguard against the high rate of employee turnover in the eating house service industry. The chief ground behind the mounting figure of this employee turnover rate is the equity in the intervention to employee, for illustration, some may hold to often work hard in the busy tiffin clip but earn less than those who work comfortably at dining clip and have more income from tips. Furthermore, forming a good combination of staffs with different degree of accomplishment to bringing an optimum service quality at a low cost of payroll check or staff use is another of import issue. These issues have urged HRC to follow a professional programming system. The procedure of implementing this system is reasonably consecutive forward: they begin with the prognosis work utilizing many different drivers ( such as last twelvemonth gross revenues, tenancy of nearby hotelsaˆ¦ ) to see how many clients would come at peculiar times and so continue with the computation of how many people needed to hold on responsibility each twenty-four hours for kitchen, the saloon, as hosts, and for table service. Once the figure of staff needed is determined, it will be submitted to the additive scheduling package which will bring forth the end product of figure of staffs with different precedence degree needed ( staffs ‘ precedence level/ ranking of between 1 to 9, based on the senior status and importance ) . This end product agenda is the key to do both employees and general director satisfied which consequences from the fact that gross revenues per labor-hour are lifting and turnover is dropping.

Other facet of the prognosis tools is that it plays a cardinal function in accomplishing the response scheme. The application of gross revenues calculating system at HRC is non merely limited within the range of human resources but besides broaden to other operations determinations of such as supply concatenation direction, director fillip and alterations on bill of fare points. Rockfest, another added service value of HRC, is a good grounds of response scheme by utilizing undertaking planning. If some unexpected things happen like traffic jams and a set non being able to acquire to venue, the director can easy turn it in to an “ awaited ” surprise by utilizing a chopper on stand-by ready to wing the set in. By holding a good prediction analysis and planning, HRC is able to react rapidly in doing these operations determination that will assist them derive competitory advantage.

Rock n ‘ Roll may hold already been dead a long clip ago. Many other subject eating houses have come and gone. But HRC with its hallmark of legendary favourite music memorabilia is still there wholly along, disputing the clip and extremely competitory concern universe. With all the good operations determinations and right strategic attacks to competitory advantage, it is really likely that history will still witness HRC turning strong and hit the market “ difficult ” in the old ages to come.

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Prospect of Hard Rock Cafe in Hanoi

HRC has been using planetary scheme in which those operating determinations above are centralized and Orlando based headquarter coordinates the standardisation and acquisition between installations. The standardisation in this context implies the construct of alone “ experience ” of amusement and dining that can non be duplicated anyplace else in the universe. Successful with this stratgey, HRC continued to spread out from a first coffeehouse in London in 1971 to more than 40 US locations, approximately twelve in Europe, and the remainder scattered throughout the universe, from Bangkok and Beijing late to Ho Chi Minh metropolis last twelvemonth and there is a rumour that it is be aftering a move to Hanoi as the following finish.

Hanoi is an ancient metropolis which had been established and developed for over 1,000 old ages since 1010. There are many relics of the past, well-known landscape in Hanoi such as Literature Temple Quoc Tu Giam, One Pillar Pagoda, Sword Lake, and West Lake. History Museum, Flag Pole, Ancient metropolis… Therefore, it can be considered as a “ finish ” city/capital which open a clear chance to work like most of the HRC ‘s favourite “ finish ” location. However, this will besides intend that it will be vunearable to economic fluctuation which hit tourer hardest. There have been some marks of success for Hard Rock Cafe in HCM metropolis but there re still some inquiries about how it will travel in Hanoi.

Despite the fact that Hanoi and HCM metropolis are the two chief biggest metropoliss in Vietnam but the nature of the concern evironment is wholly different. In HCM metropolis, a South part of Vietnam, people ‘s life manner is to populate unfastened and travel out alot at dark. Peoples in Hanoi on the other manus are reasonably conservative and do non be given to research or seek new things that they do non cognize and non lament in take parting in this type of societal activities. That is why you can easy state if a concern will of all time be successful in Hanoi after merely one twelvemonth of operation. Another facet of societal is that the attitude of Hanoi employees toward their service occupations in general is non every bit good as in HCM metropolis. Therefore, if HRC can guarantee the quality of human resources in Hanoi like at other HRC, they will be able to organize a truly strong competitory advantage at that place. Furthermore, since HRC is using planetary scheme which is non recommended when demand for local reactivity is high, they have to be really careful in instance of dramatic things like a large autumn in gross revenues do go on. However, in term of the economic systems of graduated table, HRC will happen no job with the initial set up cost which is a major setoff for any concern. The conditions in Hanoi besides plays an of import function in the service concern as it tends to be truly cold in the winter and truly hot in the summer and often rainy, which is a disheartenment for people to travel out. On top of that if HRC of all time plans on constructing a exclusive subject eating house in Hanoi so they will hold to take into history the typical high humidness which is likely to destroy and degrade any building edifice.

Another factor to see when puting up a HRC in Hanoi is political issue. Since Hanoi is a capital of a communist state, it can besides be called metropolis of political activities and the local authorization has been strict on sensitive amusement activities like dark nines and eating houses ( such as gap and shutting clip or concern licence ) . Furthermore, there is traveling to be a large alteration of members of parliement in the authorities shortly, get downing from 2010. This will ensue in many alterations in corporate and concern jurisprudence that takes topographic point. In order to cut down this short period of political hazard, HRC should prorogue the program to the 2nd one-fourth in 2011 when all the political issues are settled down.

From the operation direction position, there will ever be chances every bit good as challenges to confront when consiering an enlargement to Hanoi or anyplace else in universe. But from the point of position of people in Hanoi, with all the cordial reception, regard and passion for music, they are certain to welcome a large opportunity of holding HRC as portion of Hanoi history, civilization and societal life.


Heizer. J. , and Render. B. , ( 2010 ) . “ Principles of Operations Management ” ( 8th ed. ) . New Jersey: Prentice Hall, USA: p.g 56, 73, 83, 180, 369, 445, 647.

Hard Rock in HCM:

hypertext transfer protocol: //www.hardrock.com/locations/cafes3/cafe.aspx? LocationID=269 & A ; MIBenumID=3

Life in Hanoi:

hypertext transfer protocol: //unishanoi.org/pages/community/comm_lifehan.html

Overview of Hanoi:

hypertext transfer protocol: //www.hanoitravel.com.vn/Tours/pc21-pi7/Hanoi-Cyclo-Tour- % 281-day % 29