Roy Rogers Restaurants

1323 Words Apr 13th, 2004 6 Pages
What should Frank Martinez do about the salad bar issue?

Objectives

1. To introduce the Inputs ~ Process ~ Outputs model

2. To illustrate the tension between standardisation and innovation

Case Synopsis

Roy Rogers Restaurants is a fast food franchise business owned by Marriott Corporation. Roy Rogers is pursuing a strategy of aggressive growth through the licensing of independent franchisees (ie., independent owners) to operate its restaurant outlets. The case describes the nature of the franchise industry and provides statistics on the major franchise organisations.

The decision in the case focuses on a request by a large and powerful franchisee to eliminate the salad bar in a downtown Roy Rogers location. This decision seems
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Although there is some monitoring of outputs through financial statements, the primary focus is on the standardisation of inputs and processes.

Inputs: Roy Rogers controls carefully who can become a franchisee, and the case provides details of the financial and managerial qualifications that are necessary to be accepted as a franchisee. Roy Rogers also controls tightly the design and construction criteria for new restaurants.

Process: All processes are controlled very tightly through the franchise agreement. Key processes relate to menu, cooking procedures, training, uniforms, signage, etc. The franchise agreement provides information relating to the extent to which Roy Rogers exercises control over key inputs and processes.

The benefits of standardisation, as well as the risks should be understood. A top down standardisation of concept precludes the bottom up learning that is necessary to adapt to dynamic markets. Moreover, it is the franchisees - who are close to customers, markets, and employees - who have the most intimate information about changes in demographics, markets, and customer tastes that are most likely to affect the future direction of the business. Yet, these people are precluded from innovating or customizing the concept to experiment or take account of local and/or changing market conditions.

Long hours, highly standardised

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