Group 2Nikki Frey

GarretRosa Mendoza

Nicole Montanaro

T.G.I Fridays is a casual dining chain that serves American cuisine and alcoholic beverages. They are in the market to provide a service of food and drinks to their consumers. T.G.I Fridays was founded in 1965 and has grown to over 920 restaurants worldwide. Carlson INC owns T.G.I. Fridays and has their national headquarters in Carlton, Texas. There are 4 T.G.I Fridays within 50 miles of Florida Gulf Coast University. T.G.I Fridays has a sales volume exceeding 2.5 billion with restaurant locations in over 99 nations and has approximately 20,000 employees world wide. TGI Fridays also gives back to the community by having many different community service event as well as a Daughter-Mother philanthropy.

What is T.G.I Fridays?

T.G.I Fridays has a credo and a promise. The credo states that “A culture of inclusion through respect, caring, fairness, and understanding by Leadership that deserves responsible, committed, positive, and trustworthy Team Members.” And their promise states, “Every Guest Leaves Happy. Each of us base all decisions on what is best for the Guest, first. We operate as One Brand with uncompromising Standards of Excellence around our Credo, our guiding Principles, and our Culture of Fun. We deliver on our financial commitments, but never at the expense of the safety and security of our Guest, Team Members and the Brand.”  

Fridays Mission and

Values

Strength: Convenience- not having to cook and just sitting back and having

it delivered to your table. Service- they have very friendly and assertive servers.

Location- they are always located in central places.Pricing- very affordable and competitive prices.

Customer- devoted customers who trust the brand Brand- the brand itself is very well know and is dependable for

many populations. Weaknesses: Time/cost- it may take too long to make certain plates and the

cost of some might be higher when compared to competitor’s prices.

Training- if not enough or adequate training is done for the employees then they might not be aware of certain policies and/or etiquette.

Expansion- whether they don’t have the funding or the space, expansion of the chain might be limited leaving them far away from hot-spots.

SWOT Anaylsis

Opportunities: Evaluate operations- check to see if there are parts within the food-making system,

delivery system, or service as a whole that need to be updated or revamped. Training- assessments can be made in order to better train the employees; leadership, service, Demand/Innovative and updated ideas- they can think about new web trends (ordering online/ road-side pick-up), new location for restaurants, updated menu based on health/portion awareness.

Reputation- it would be good for them to take advantage of the demand change and incrase their reputation within many other customer markets.

Resources- these can cause threats and opportunities for T.G.I. They might find a cheaper or better food for an existing one within their menu that can cause them to replace it and gain an economic advantage. As need for resources change, T.G.I. gets the opportunity to change their industry also; changing certain options on their menus and platters they serve.

Threats: Population Change- as the population changes so does the target audience for the

restaurant chain so they need to make sure to appease all types of people within their population.

Demand- this can be seen as an opportunity if the organization molds to the change in demand, if not they can be left behind and their reputation could diminish if they do not stay up to date.

Resources- resources for certain food might be minimal bringing a rise to the prices and maybe a change in their menu.

Competition- there are many other chains of restaurants; like Applebee’s and Ruby Tuesday’s, that attract the same line of customers that T.G.I. does. They have to keep up with demand so that their chain is not replaced by others while at the same time keeping their integrity to their mission at hand.

SWOT continued

Forecasting- With goods at Fridays, it involves inventory that can be stored for weeks such as food or beverages, with inventory than can be stored for months, such as utensils, napkins, plates, etc. With services, forecast horizons are shorter and are more variable and must be done on an hourly or daily basis. Fridays services involves the demand of employees needed that day or hourly.

Facility layout- With Friday’s goods, their distributors are located in the same city area so delivery time is faster and more efficient. With Services All Fridays are located in a tourist areas or shopping plazas.

Facility layout and design- For goods, Friday’s food is produced in the kitchen where there is only a limited amount of employees allowed. With services, the facility must be designed for customer interaction and Fridays service area has a many space due to customers and employees need space for delivering food, making orders, customers using restrooms, etc.

Technology- At Fridays most of the goods and inventory is package by distributors or suppliers. With services, this requires technology used in Fridays that machines produce would be food tickets needed to tell the cooks what to cook.

Quality- Fridays, goods are measured by how much ingredients are used in each dish. Services quality measurement is determined by the customer’s perspective of customer service and is gathered through surveys or direct contact from Fridays.

Inventory- Inventory goods at Fridays would be their ingredients, supplies needed for both customers and employees, uniforms, office supplies, etc. In services, service capacity, the environment and its employees, is the substitute for physical inventory at Fridays.

Process design- At Fridays, the process of goods is mechanistic and controllable because customers do not participate in the goods producing process. When dealing with a customer at Fridays, customers always participate in service creation and delivery.

Job/Service encounter design- Goods producing employees require strong technical and production skills at Fridays. This includes people fixing technologies and computers, or cooks producing meals at Fridays. With Service employees need more behavioral and service management skills such as servers, managers, hostesses or bussers.

Scheduling- With goods at Fridays, scheduling involves cooks getting meals on time and efficient to the customer to increase customer satisfaction. With Friday services, scheduling focuses on when to assign employees and equipment to accomplish the work efficiently with the benefit of physical inventory.

Supply chain management- Fridays meals are produced at a timely manner and at highest quality to maximize customer satisfaction and profit, and to minimize delivery time, cost, and environmental impact. For Friday’s services, it focuses on the flow of people being served at the restaurant, trying to maximize customer satisfaction, profit, and minimizes delivery time, cost, and environmental impact.

Ten OM Decsions

Fridays process strategy deals with a flow shop process that deals with the moment the mangers orders the inventory needed, server getting an order, to the preparation of the food, then delivered to the customer containing the bill. Fridays meets the requirements of being in a flow shop process because: Little or no setup changeover time. Fridays already has the

supplies and ingredients to make the food and use the same routine when preparing meals to a customer.

Dedicated to a small range of goods or services that are highly similar. At Fridays they use the same in ingredients for similar meals, such as using the same chicken, burgers, filets for different menu options. Also finding different methods of preparing a meal.

Similar sequence of process steps. At Fridays this includes when a server takes an order, the food is cooked and delivered, and then handed the bill. There is a continuous sequence Fridays performs in order to maintain the same quality of customer service and food taste.

Moderate to high volumes. Fridays create well organized process when making orders from customers to decrease the amount of wait

Process Strategy

Service technology:1. Speed of the food orders getting to the kitchen staff.

2. Touch screen computers to input food orders

3. Phone orders for car side to-go.

Production or service qualities

Social Strategies: 1. Consumer safety in the store and consumption of the food 2. Safe and clean work environment 3. Meet legal requirements for a business 4. Use local producers for products   Economical Strategies: 1.Utilize financial plans to stay in business 2.Use and manage resources effectively 3.Emergency plans for business   Environmental: 1.Reduce wasting food

Paying attention to portion sizes and the demand that customers have on them.

2. Recycle “Sustainable energy firm Convert2Green and food service company

3663 have secured a contract with restaurant chain TGI Friday’s to collect and turn waste cooking oil from around 50 branches in the UK into carbon savings. Recycling their cooking oil to high quality bio-fuel can help TGI Friday’s to reduce carbon emissions by up to 90%.”

https://motoren.wordpress.com/2011/04/07/tgi-fridays-reducing-carbon-footprint/

Fridays sustainability strategies

T.G.I. Friday’s is a restaurant and has numerous franchises globally, they are considered to have a forward integration process. They buy the raw food from different producers, yet they are the ones to assemble the food and also distribute it. They make sure that their goods are sold in their owned stores; making the process more synchronized and accessible by the consumers. The sauces, meats, vegetables and desserts are pre-made and transferred to the local T.G.I. stores to be assembled into the finished plate and then provided to the customer at the restaurant. There are some types of backward integrations for T.G.I. Friday’s; their Coca Cola drinks are arrive to their restaurants ready, all that T.G.I. does is distribute it. When it comes to outsourcing TGI Friday’s does it to a minimal extent. The company relies on multiple suppliers for the resources needed to produce their food. They rely on Coca Cola for their drinks, companies like Lawler Foods and Oneida for their produces and materials, yet they themselves assemble it into the finishing product they sell. They do outsource part of their hiring; they count on online websites like job-applications.com and hiring companies to help with the hiring of employees all throughout the world. They also outsource their graphic designs for their menus and website to other companies that specialize on it.

Fridays Value Chain

There are currently over 355 restaurants in 59 international countries. Therefore

TGI Fridays does have global supply chain. They use American suppliers and distributors that also distribute globally. Oneida distributes all of the silverware

to the local restaurants and the international restaurants as well. Coke is their drink supplier. Mission foods are

their main food supplier who also distribute internationally. Lawler foods

are TGI’s main dessert supplier

Fridays Supply Chain

TGI Fridays uses the ecommerce, which is the buying and selling of products and services over the phone and Internet. Many of their food and supply orders are handled electronically or by the telephone. However, they do not use ecommerce for the public to purchase their food.

TGI Fridays uses e-procurement to maintain all of the activities and tasks that go along with outsourcing, purchasing, and liabilities including payable can be automated across their supplier network with their supply chain software. By using e-procurement this helps them build stronger relationships with vendors and they are able to have better assess and manage their performance.

Fridays Global Supply Chain

Global supply chain characteristics include Inventory management, logistics, forecasting, and planning.

Inventory management making sure you have enough raw materials (food) to continue operations. This means keeping inventory levels not too high (creating the bullwhip effect) and not too low.

Logistics include transportations of the raw goods and materials to the appropriate restaurant. This is important because the food needs to stay fresh and be at the restaurant in a reasonable amount of time.

Forecasting and planning is important to global supply chain because organizations can more accurately anticipate customer demand and can plan their procurement and production processes accordingly.

Global Supply Chain continued

T.G.I. Friday’s uses all of the stated metric categories to measure the supply chain performance. They focus more of their performance improvements on responsiveness and customer satisfaction though. Since they are a service provider, they work on multiple ways of minimizing the wait-time for their customers and providing a satisfying results for them too. They also work on their delivery reliability; by minimizing the number wrong orders they have they optimized the success of the branch and the overall brand.

The inventory turnover for TGI Friday’s is very small since what they produce can go bad after a minimal amount of time, the inventory turnover for them can be estimated to be 6 since their competitors are around this also (Applebees 6 and Ruby Tuesday’s is 7). They; therefore, have to focus on making their products work with the demand of their customers. Noticing this, they have a Just-in-Time approach to their production so that food is made once the customer orders it, making it as easy and fast as possible.

How Fridays measures SC performance

TGI Fridays uses various inventory policies involving just in time principals and lean incentives. With just in time systems, TGI Fridays uses both the push and pull system. With the push method, this deals with the demand of employees and the amount of food to be prepared depending of the future forecast of that day. With the pull method involves having enough supplies available to the employees such as napkins, utensils, cooking supplies, enough check presenters and menus, etc. TGI Fridays carries numerous attributes of Just in time systems and there practices such as:

· Fast processing time of orders ·Clean and uncluttered work environment · Small inventory go increase efficiency and food quality · Reuse the cooking Oil for gas for their transportation

trucks · Facility layout that supports continuous or single-

paced flow · Little lead time with minimize distance for traveling

and handling · Employees trained in quality management concepts

and tools · Employee cross’ training and reward programs

Inventory Policies

Alyson Scot, head of supply chain states, “our aim is to totally eradicate all landfill by 2012 and reduce our energy consumption by 15% by the same time- and we’re well on track to achieving both of those targets.”

reduce their carbon emissions by 90% is having Convert2Green collect all of their waste oil and turning it into bio-diesel. The waste oil that is converted into fuel is then used to power the trucking company that TGI Friday’s uses. This transformation of waste oil to fuel saves the company money on gas and reduces the usage of fossil fuels.

TGI Friday’s has begun making frozen dinners for customers who aren’t able to go out to eat and who need a quick meal. The trays are also composed eco friendly and contain 40% less plastic than traditional frozen meal trays.

Fridays environmental sustainability efforts

Mission Foods, one of Friday’s vendors has also decided to “go green”. Mission Foods has done this by placing all of their packaged products into returnable plastic containers (RPCs) by using RFID technology. After Mission Foods implemented the RFID technology they could now keep track of their RPCs and reuse them.

Mission foods had then reduced its carbon foot print by being able to reuse their plastic containers.

Heinz is another one of Friday’s vendors that is very proactive in sustainability practices. They have many goals such as increasing renewable energy by 15% by 2015 that help them to become more sustainable

Fridays environmental sustainability efforts

continued

Fridays is a family restaurant that has a main service process design that develops a sequence of activities to satisfy both internal and external customer requirements.  Managers need to follow this service process  to ensure that orders are done right the first time and their is a friendly relationship between the employees and customers

Fridays improve its process for better service and food quality followed by a fast, pleasant experience. Fridays support this process by having to install more computers for quicker access available for servers, hire a food expo to make sure orders are made correctly and set-up properly, and extra staff on busy predicted nights to ensure high service quality.

Administrative processes are office tasks that keep the company running. This includes human resources, marketing and accounting. Specifically, Management information Systems (MIS), and budgets. MIS provides information that is needed to manage organizations efficiently. Examples of these for TGI Fridays are:

*Decision support systems (DDS)- which supports business decisions by compiling data, documents, personal knowledge, and business models.

*Expert systems- which is a type of Artificial Intelligence (AI) designed to solve problems by reasoning about knowledge.

*Executive information systems (EIS)- which is a type of MIS that helps those executives control data by seeing the trends, audits, calculating totals, etc.

Fridays main, support and administrative processes

Fridays Current Flow

Fridays Revised Flow

1. Customer requirements are what the customer wants from TGI Fridays.

The categories that we thought were most important to the consumer are: Affordability, Atmosphere, and Appetizing.

Within the Appetizing category there were 4 subcategories: Looks appealing, tastes good, healthy alternatives, and fulfilling.

Atmosphere’s four subcategories are: Entertaining, Fun, Relaxing, and hanging out.

Affordable subcategories are: Promotions, Drink Prices, Rewards Program, and Reasonable Food Prices.

Also a questionnaire was distributed and the results showed that the majority of the people polled preferred great tasting food at a higher price was most important to them then the atmosphere was second important, then happy hour, rewards program, and the least important was not as good tasting food at a lower price.

Fridays House of Quality

2. Competitive Assessment We selected two competitors and evaluated whether they meet

these customer needs compared to TGI Friday’s. TGI Fridays was letter A, Ruby Tuesday was letter B, and Applebee’s was letter X. The assessment was based on a scale of 1-5 (5 meaning fully met needs).

This competitive assessment showed that based on customer needs, Applebee’s is TGI Friday’s biggest competitor. The line follows the entire letter A’s. This is how you determine where your competitors stand compared to TGI Fridays.

3. Determine design characteristics How we meet customer wants. These are located above the

relationship matrix. These characteristics include: close to home/school/work, music

playing or live music, drink menu variety, booths or tables, happy hour, preparation time, size proportions, variety, and dessert. We believe these things will help meet the customer’s wants.

Fridays House of Quality continued

4. Technical attributes of the design characteristics. The technical attributes are Estimated impact (Sales), Estimated cost, Target

Values, and Design Changes. We took a look at each design characteristic and evaluated it based on those 4 measures.

5.Competitive analysis of the technical attributes (technical attributes of the competitors product or service). Each design characteristic we concluded the following: Close to home and close to school and/or work impacts sales based on mileage. The live music aspect doesn’t highly effect the sales, it could be costly, and it is

not a target value of TGI Fridays Drink Menu Variety won’t necessarily impact sales as much, because most

restaurants can make all of the most common drinks that people want. It is also a target value of the company, and should not be subject to any changes.

Booths vs tables can be costly but it is an important characteristic of TGI Fridays.

Happy Hour can greatly impact sales and generate customer loyalty. It could be costly at the beginning, however bringing in profit in the future.

The preparation time is a huge characteristic when it comes to restaurants. No one wants to wait more than 15 minutes for their food. This will positively impact sales if the wait time can be at or less than 15 minutes.

The size proportions also goes hand in hand with wait time. The food the customer ordered should be the appropriate size, not to big and not to small.

Variety of the menu is not a main concern, same as the dessert menu. The menu the way it is currently fits TGI Fridays theme and it could be costly to change it and potentially loose customers.

Fridays House of Quality continued

5. New product or change suggestions This is located in the Technical Attributes section. We took

a look at how far away each restaurant was from campus and from our homes. TGI Friday’s was the farthest away. This could change to be closer to get more business from the college students. Here are the following suggestions:

Change location to be on or near a campus where there is campus housing or campus hang out area (such as Gulf Coast Town Center). This brings more business during all hours.

Live music once every two weeks would bring a crowd into the restaurant.

Have more high tops, and bar area for the evening crowds.

Happy hour or a ladies day or night with cheap drinks and food for everyone. ($1 burgers or $1 tacos for example.)

Fridays House of Quality continued

Summary of process flow and HOQ findings.

I would would do different in he project is

What I would change