Read case study on pages 100-103, do only the second discussion question on pages 103. O Case StudyThe Perils of Menu Planningthriving 300-unit casual-Until six months ago, the Madison Avenue Grill was a2.9 percent.dining chain with restaurants stretching from Seattle, Washington, to London,for the chain, has discovered that customer counts are falling off, with sales downEngland. But lately the news has not been so good. Karen Seaton, financial officerAll signs pointed to the menu. Although Madison Avenue Grill has established a strong reputation as a quality restaurant serving upscale burgers, ribs,and fish, the novelty of their offerings has faded. In many markets, fresher, trend-ier concepts have taken hold. If the Grill is to withstand the competition, the menuhas to change. And the sooner the better.After consulting with COO and company cofounder Marcus Turner, Karenhas gained the opportunity to test a new menu concept. To help develop thatconcept, she has called a 9:00 A.M. meeting with Marcus and three other com-pany leaders: Jorge Estrada, director of marketing; Anne Hudson, directorof operations/service; and Chef Charles Gustafsen. Her instructions to each:Come prepared to suggest one new menu item that can be launched immedi-ately to turn the situation around-and be prepared to offer a rationale for therecommendation.The five met around a large conference table in Marcus Turner's office. Karenmade certain there were financial reports at each place.the preliminar-"Since you're all aware of why we're meeting today, I'llies brief. In a nutshell, our current numbers do not look good," she said. "Thebottom line's in jeopardy, people, and if we don't do something fast, it's going tolook even worse. Since the problems all seem to point to our menu, that's whereI suggest we look for solutions. You're all here because I think we'll be able tocome to some creative solutions if we work together. Input from each of you isimportant, because any change we make to the menu affects a number of keycontrol points-purchasing, receiving, storing, issuing, production, service, andof course, guest satisfaction. We need the one solution that will work best foreveryone in the operation.""So what's your new menu idea?" Anne Hudson asked, looking up from hernotepad.margin, and brings people through the doors," Karen said. "A profitable conve"I think we need something that takes relatively little prep time, offers a highnience food, if you will."At the words convenience food, Chef Gustafsen's jaw tightened. "And yourrecommendation?""Prime rib."out?""Done to death," Jorge Estrada sighed. "And haven't you heard that beef isinconvenient cut. It's too easy to overcook. Of course, with the proper slow-cooking"If you want convenience," the chef interjected, "you couldn't pick a moreequipment, it can be managed, but-"The Menu: The Foundation for Control 101Karen held up her hands. "Okay, okay. Given the current financials, I'm cer-tainly not going to recommend new equipment in every unit. I know I like primeCOO Marcus Turner leaned forward, rubbing his hands. "You know what Irib and I thought it would be a big hit."like? I think-""If you want to bring people through the door, you have to give them whatthey want," Jorge interrupted. "All of my market research is pointing to one thing:pita wraps. They're very hot right now. They capture people's fondness for lighter,healthier food; you can make them any way you want-Tex-Mex, Greek, stir-fry,whatever; and they are guaranteed to pull people into our operations. If you wanteven more reasons, they're fast and easy to prepare, so we can turn more tables atlunch and dinner.""Wraps have a very low margin, Jorge," Karen said, frowning."But we'll make it up through increased traffic.""I'm not so sure," Anne said. "I can tell you right now that my servers arenot going to be happy pushing $4 or $5 wraps all the time. To bring their tips up,they're going to be recommending higher-priced items. And frankly, wraps can bemessy. That may mean my bussers have to spend a little more time cleaning up ateach table, and that may cut into your fast-turning tables theory.""Not to mention the additional prep time," Charles said. "Suddenly we'redoing a lot of cutting and chopping we didn't need to do before." He pausedbefore adding, "And for what? So we can jump on the latest sandwich bandwagon.Where's the creativity in that?""Speaking of creativity-" Marcus began.Karen cleared her throat and turned to Anne Hudson. "What's your menusolution?"Anne flipped through her notepad, searching for her notes. "To be honest,I'm not all that particular about what we decide. I just need something my peoplecan sell easily, that generates a good-sized check, and that guests will enjoy. I,uh-" at last she found her notes-"I'm recommending some kind of dessert spe-cial, offered either nightly or weekly. I think people will come out to see what thespecials are that addresses your traffic concerns, Jorge-and $4 and $5 dessertsrepresent a good profit for the company while boosting the check average nicelyfor our servers," she said, nodding at Karen. "We could even make our kitchenstaff happy by purchasing brand-name desserts that require minimal preppingand can be easily stored, garnished, and served."Chef Charles, who had been looking increasingly hopeful as Anne describedher idea, suddenly reddened. "Why does the Grill even pay me a salary! Here Iam, a classically trained chef who could help turn things around for us, and yourecommend that we throw something on a plate that our guests could just as easilypick up at thetohow to prepare food? Oh, I forgot. We get to decide which side of the cheesecaketo place our little sprig of mint on.""Chef-""Why not let me do what I am trained to do? Give me the freedom to cre-ate true culinary specialties, not serve up some store-bought concoctions. I cancreate one for every day of the week, signature dishes of the Madison Avenue 102 Chapter 3Grill, and guests will come back day after day to experience them. Besides, if weprepare it ourselves, we can take advantage of special buys and seasonal specialsand increase value. I am certain that with my unique creations on the menu, allit would take is a little marketing expertise to bring people through the door andkeep them coming back.""I know what keeps people coming back," Marcus ventured."What about quality, Chef?" Anne asked. "How are our hundreds of cooksservers be able to develop strong product knowledge? And how do we justifygoing to maintain quality for a recipe they prepare only once a week? How willpurchasing and storing specialized ingredients in all of our locations for sevenone-of-a-kind dishes?""You talk about marketing like it's some kind of cure-all," Jorge added, feel-ing his own temper rising. "Even if every one of your recipes was incredible, thefact is, that's not what people are saying they want. What's wrong with givingguests what they want?""I have to admit I have some concerns about profitability issues, as well,"Karen said.Then, no longer able to put him off, she glanced up at her boss. Marcus Turnerwas poised on the edge of his seat, looking suspiciously as if he had somethingto add."Mr. Tumer?"Marcus smiled broadly. "Finally, someone wants to hear my idea." He leanedback in his chair, a faraway look filling his eyes. "As some of you may know, Irecently spent a couple weeks fly-fishing in Maine."Jorge leaned over to Anne. "While we were up to our necks in extra work,"he whispered.Marcus ignored him. "You know what they love in Maine?" he asked the ceil-ing. "Fresh Maine lobster. Now, I know I've been out of operations for a while, butI can recognize a hit when I see one."Karen buried her head in her hands. "Fresh Maine lobster."instincts are telling me-""Exactly. Now, I hate to just jump in and give you the answer like this, but my"How do you suggest we get fresh Maine lobster to our units in Montana?"Anne asked. "Or, say, North Dakota?""Airplanes.""And do you know what air delivery adds to the final price? We'd be talking25 to 35 dollars for a lobster-""Well, the servers would love it," Marcus interjected.Who's going to buy them?""-in restaurants with a check average of $6 for lunch and $12 for dinner."Well, now, if marketing just did their job," Marcus said, his voice trailing off.people want, and it isn't Maine lobster. Not in Las Vegas, not in Louisiana, and"Marketing?" Jorge said, incredulous. "Marketing's been telling you whatcertainly not in London.""And what about storage? We'd need lobster tanks in every store.""We'd have to buy bibs, cookers, crackers...""We'd need to establish receiving procedures to process live animals."The Menu: The Foundation for Control 103"Okay, okay," Marcus said, his smile fading fast. "But if lobster's definitelyable ideas already on the table, how do we determine which is the right one forout of the question, where does that leave us? Assuming we have some truly work-Madison Avenue Grill?"Discussion Questions1. What rationale did each member of the management team present in supportof the menu item he or she recommended?2. What are some of the advantages and disadvantages of each suggested menuitem based on the control points of purchasing, receiving/storing/issuing,production, and service?3. Use the information you gathered in answering Discussion Question #2 tocomplete the following decision matrix. Place a "+" in the appropriate col-umn/row intersection if the advantages seem to outweigh the disadvantages,place a "-" if the disadvantages seem to outweigh the advantages, and placea "?" if you cannot decide which outweighs the other.Purchasing Receiving/Storing/Issuing Production ServiceMenu ItemPrime RibPita WrapsDessert SpecialsSignature ItemsMaine LobsterOther4. Of all the suggested menu items, which would you choose as the best solutionto the Madison Avenue Grill's declining customer base? Why?5. Keeping in mind the chain's desire for a new high-profit, popular, convenientmenu item, what item would you suggest? What would be the advantagesand disadvantages of your suggested item in terms of the control points ofpurchasing, receiving/storing/issuing, production, and service? Add yoursuggested menu item to the decision matrix you completed above, and, of allthe suggested menu items, which would you now choose as the best solutionto the chain's declining customer base? Why?Case Number: 4655CAHelping to generate and develop this case study were industry experts Timothy J.Pugh, East Lansing, Michigan, and Lawrence E. Ross, Professor, Florida SouthernCollege.

Question

Read case study on pages 100-103, do only the second discussion question on pages 103. O Case StudyThe Perils of Menu Planningthriving 300-unit casual-Until six months ago, the Madison Avenue Grill was a2.9 percent.dining chain with restaurants stretching from Seattle, Washington, to London,for the chain, has discovered that customer counts are falling off, with sales downEngland. But lately the news has not been so good. Karen Seaton, financial officerAll signs pointed to the menu. Although Madison Avenue Grill has established a strong reputation as a quality restaurant serving upscale burgers, ribs,and fish, the novelty of their offerings has faded. In many markets, fresher, trend-ier concepts have taken hold. If the Grill is to withstand the competition, the menuhas to change. And the sooner the better.After consulting with COO and company cofounder Marcus Turner, Karenhas gained the opportunity to test a new menu concept. To help develop thatconcept, she has called a 9:00 A.M. meeting with Marcus and three other com-pany leaders: Jorge Estrada, director of marketing; Anne Hudson, directorof operations/service; and Chef Charles Gustafsen. Her instructions to each:Come prepared to suggest one new menu item that can be launched immedi-ately to turn the situation around-and be prepared to offer a rationale for therecommendation.The five met around a large conference table in Marcus Turner's office. Karenmade certain there were financial reports at each place.the preliminar-&#34;Since you're all aware of why we're meeting today, I'llies brief. In a nutshell, our current numbers do not look good,&#34; she said. &#34;Thebottom line's in jeopardy, people, and if we don't do something fast, it's going tolook even worse. Since the problems all seem to point to our menu, that's whereI suggest we look for solutions. You're all here because I think we'll be able tocome to some creative solutions if we work together. Input from each of you isimportant, because any change we make to the menu affects a number of keycontrol points-purchasing, receiving, storing, issuing, production, service, andof course, guest satisfaction. We need the one solution that will work best foreveryone in the operation.&#34;&#34;So what's your new menu idea?&#34; Anne Hudson asked, looking up from hernotepad.margin, and brings people through the doors,&#34; Karen said. &#34;A profitable conve&#34;I think we need something that takes relatively little prep time, offers a highnience food, if you will.&#34;At the words convenience food, Chef Gustafsen's jaw tightened. &#34;And yourrecommendation?&#34;&#34;Prime rib.&#34;out?&#34;&#34;Done to death,&#34; Jorge Estrada sighed. &#34;And haven't you heard that beef isinconvenient cut. It's too easy to overcook. Of course, with the proper slow-cooking&#34;If you want convenience,&#34; the chef interjected, &#34;you couldn't pick a moreequipment, it can be managed, but-&#34;The Menu: The Foundation for Control 101Karen held up her hands. &#34;Okay, okay. Given the current financials, I'm cer-tainly not going to recommend new equipment in every unit. I know I like primeCOO Marcus Turner leaned forward, rubbing his hands. &#34;You know what Irib and I thought it would be a big hit.&#34;like? I think-&#34;&#34;If you want to bring people through the door, you have to give them whatthey want,&#34; Jorge interrupted. &#34;All of my market research is pointing to one thing:pita wraps. They're very hot right now. They capture people's fondness for lighter,healthier food; you can make them any way you want-Tex-Mex, Greek, stir-fry,whatever; and they are guaranteed to pull people into our operations. If you wanteven more reasons, they're fast and easy to prepare, so we can turn more tables atlunch and dinner.&#34;&#34;Wraps have a very low margin, Jorge,&#34; Karen said, frowning.&#34;But we'll make it up through increased traffic.&#34;&#34;I'm not so sure,&#34; Anne said. &#34;I can tell you right now that my servers arenot going to be happy pushing $4 or $5 wraps all the time. To bring their tips up,they're going to be recommending higher-priced items. And frankly, wraps can bemessy. That may mean my bussers have to spend a little more time cleaning up ateach table, and that may cut into your fast-turning tables theory.&#34;&#34;Not to mention the additional prep time,&#34; Charles said. &#34;Suddenly we'redoing a lot of cutting and chopping we didn't need to do before.&#34; He pausedbefore adding, &#34;And for what? So we can jump on the latest sandwich bandwagon.Where's the creativity in that?&#34;&#34;Speaking of creativity-&#34; Marcus began.Karen cleared her throat and turned to Anne Hudson. &#34;What's your menusolution?&#34;Anne flipped through her notepad, searching for her notes. &#34;To be honest,I'm not all that particular about what we decide. I just need something my peoplecan sell easily, that generates a good-sized check, and that guests will enjoy. I,uh-&#34; at last she found her notes-&#34;I'm recommending some kind of dessert spe-cial, offered either nightly or weekly. I think people will come out to see what thespecials are that addresses your traffic concerns, Jorge-and $4 and $5 dessertsrepresent a good profit for the company while boosting the check average nicelyfor our servers,&#34; she said, nodding at Karen. &#34;We could even make our kitchenstaff happy by purchasing brand-name desserts that require minimal preppingand can be easily stored, garnished, and served.&#34;Chef Charles, who had been looking increasingly hopeful as Anne describedher idea, suddenly reddened. &#34;Why does the Grill even pay me a salary! Here Iam, a classically trained chef who could help turn things around for us, and yourecommend that we throw something on a plate that our guests could just as easilypick up at thetohow to prepare food? Oh, I forgot. We get to decide which side of the cheesecaketo place our little sprig of mint on.&#34;&#34;Chef-&#34;&#34;Why not let me do what I am trained to do? Give me the freedom to cre-ate true culinary specialties, not serve up some store-bought concoctions. I cancreate one for every day of the week, signature dishes of the Madison Avenue 102 Chapter 3Grill, and guests will come back day after day to experience them. Besides, if weprepare it ourselves, we can take advantage of special buys and seasonal specialsand increase value. I am certain that with my unique creations on the menu, allit would take is a little marketing expertise to bring people through the door andkeep them coming back.&#34;&#34;I know what keeps people coming back,&#34; Marcus ventured.&#34;What about quality, Chef?&#34; Anne asked. &#34;How are our hundreds of cooksservers be able to develop strong product knowledge? And how do we justifygoing to maintain quality for a recipe they prepare only once a week? How willpurchasing and storing specialized ingredients in all of our locations for sevenone-of-a-kind dishes?&#34;&#34;You talk about marketing like it's some kind of cure-all,&#34; Jorge added, feel-ing his own temper rising. &#34;Even if every one of your recipes was incredible, thefact is, that's not what people are saying they want. What's wrong with givingguests what they want?&#34;&#34;I have to admit I have some concerns about profitability issues, as well,&#34;Karen said.Then, no longer able to put him off, she glanced up at her boss. Marcus Turnerwas poised on the edge of his seat, looking suspiciously as if he had somethingto add.&#34;Mr. Tumer?&#34;Marcus smiled broadly. &#34;Finally, someone wants to hear my idea.&#34; He leanedback in his chair, a faraway look filling his eyes. &#34;As some of you may know, Irecently spent a couple weeks fly-fishing in Maine.&#34;Jorge leaned over to Anne. &#34;While we were up to our necks in extra work,&#34;he whispered.Marcus ignored him. &#34;You know what they love in Maine?&#34; he asked the ceil-ing. &#34;Fresh Maine lobster. Now, I know I've been out of operations for a while, butI can recognize a hit when I see one.&#34;Karen buried her head in her hands. &#34;Fresh Maine lobster.&#34;instincts are telling me-&#34;&#34;Exactly. Now, I hate to just jump in and give you the answer like this, but my&#34;How do you suggest we get fresh Maine lobster to our units in Montana?&#34;Anne asked. &#34;Or, say, North Dakota?&#34;&#34;Airplanes.&#34;&#34;And do you know what air delivery adds to the final price? We'd be talking25 to 35 dollars for a lobster-&#34;&#34;Well, the servers would love it,&#34; Marcus interjected.Who's going to buy them?&#34;&#34;-in restaurants with a check average of $6 for lunch and $12 for dinner.&#34;Well, now, if marketing just did their job,&#34; Marcus said, his voice trailing off.people want, and it isn't Maine lobster. Not in Las Vegas, not in Louisiana, and&#34;Marketing?&#34; Jorge said, incredulous. &#34;Marketing's been telling you whatcertainly not in London.&#34;&#34;And what about storage? We'd need lobster tanks in every store.&#34;&#34;We'd have to buy bibs, cookers, crackers...&#34;&#34;We'd need to establish receiving procedures to process live animals.&#34;The Menu: The Foundation for Control 103&#34;Okay, okay,&#34; Marcus said, his smile fading fast. &#34;But if lobster's definitelyable ideas already on the table, how do we determine which is the right one forout of the question, where does that leave us? Assuming we have some truly work-Madison Avenue Grill?&#34;Discussion Questions1. What rationale did each member of the management team present in supportof the menu item he or she recommended?2. What are some of the advantages and disadvantages of each suggested menuitem based on the control points of purchasing, receiving/storing/issuing,production, and service?3. Use the information you gathered in answering Discussion Question #2 tocomplete the following decision matrix. Place a &#34;+&#34; in the appropriate col-umn/row intersection if the advantages seem to outweigh the disadvantages,place a &#34;-&#34; if the disadvantages seem to outweigh the advantages, and placea &#34;?&#34; if you cannot decide which outweighs the other.Purchasing Receiving/Storing/Issuing Production ServiceMenu ItemPrime RibPita WrapsDessert SpecialsSignature ItemsMaine LobsterOther4. Of all the suggested menu items, which would you choose as the best solutionto the Madison Avenue Grill's declining customer base? Why?5. Keeping in mind the chain's desire for a new high-profit, popular, convenientmenu item, what item would you suggest? What would be the advantagesand disadvantages of your suggested item in terms of the control points ofpurchasing, receiving/storing/issuing, production, and service? Add yoursuggested menu item to the decision matrix you completed above, and, of allthe suggested menu items, which would you now choose as the best solutionto the chain's declining customer base? Why?Case Number: 4655CAHelping to generate and develop this case study were industry experts Timothy J.Pugh, East Lansing, Michigan, and Lawrence E. Ross, Professor, Florida SouthernCollege.

Accepted Answer

As requested in the caption, here is the solution to only the 2nd discussion of the given case…

2. What are some of the advantages and disadvantages of each suggested menu item based on the control points of purchasing, receiving/storing/issuing, production, and service?