Hansen's Restaurant Case Study

Hansen’s Restaurant

Module 2 – Session 5 – Written Case Report

Santhosh Sivamoorthy

Member #: 10047570

February 17, 2017

Table of Contents

Executive Summary        3

Issue Identification        3

Environmental and Root Cause Analysis        5

Alternatives and/or Options        6

Recommendation        7

Implementation        8

Monitor and Control        9

Executive Summary

Kathryn McGarry, chef and co-owner of Hansen’s hideaway must decide how the restaurant should purchase their beef for the new dinner service.  She had to decide if she should buy ready-to-cook, proportioned cuts of beef or fabricate portions in-house from larger cuts. She wanted to base the make or buy decision on the lowest total cost of ownership. She needs to analyse her research and present to her co-workers.

Issue Identification

The following issues must be addressed:

1. Beef Quality – Cut and grade of beef largely determined quality.
2. Food Safety – Meet was highly perishable therefore, safe handling and storage is critical
3. Meet Suppliers
4. Ordering and Receiving Processes
5. The Meat Fabrication process

Environmental and Root Cause Analysis

Meat was the highest cost item in the kitchen. Therefore meat, especially beef, was on one of the greatest potential areas for profit as well as loss. The main challenge Kathryn faces is determining which meat fabrication process works best at the current stage of their restaurant dinner venture.

Issue Identification

Beef Quality – Cut and grade of beef is very important to determine the quality of beef. This also affected the cost of beef as various cuts and grades were priced differently. In order to maintain and deliver a high quality of beef to the customer, it was important that Kathryn places the orders for beef with the intention of using it immediately.  Any excess meat will need to be kept frozen, however this will impact taste, juiciness and tenderness of the product and in order to prevent this a quick-freeze refrigeration machinery is required.

Food Safety – Meat needs to be stored and handled in a highly efficient manner in order to reduce or eliminate cross contamination, spoilage, and spreading of pathogens. In-house fabrication of meat would require a purchase of a vacuum-packer that can cost between $1,500 and $2,000.

Meat Suppliers – There are three types of meat suppliers: general foodservice purveyors, meat purveyors and local cattle farmers. Kathryn has access to all and can decide to pick and choose her suppliers.  

Ordering and Receiving Processes – Introducing dinner and particularly beef into the menu can cause disruptions to the already well established process and procedures for receiving and storing. Flexiblity with beef portion sizes would reduce the risk associated with demand uncertainty without adversely affecting customers.