A service launched by Applebee’s restaurant with its label on it can be serviced by using technologies such as touch screen, order by phone and internet. Until recently, the physical operating layer in logistics operated in disconnected isolation from the information. The movement of service within Applebee’s Restaurant facility was nearly invisible. Of course, the product service information, (Applebee’s product and service in this case) could show that they were somewhere in the facility, and possibly the designated restaurant location, but little beyond that—particularly if the products were in transit. The same was even true of outside facilities. Goods that were shipped to a retail store were “on the road, boat, or air,” but little more was known other than possibly when they were received at their destinations.
Successfully managing a product service operation requires several metrics. For example, Applebee’s restaurants often track service measures such as product-order fill rates, order-to-delivery cycle time, and order defects (wrong product shipped). On the other hand, we also must measure the costs of providing the services—for example, food cost and served to customers. In addition to these tactical measures, Applebee’s restaurant needs a general way to access aggregate performance—something that quickly indicates the overall performance of the supply-chain. A qualitative way to represent performance appears in (Figure 2-2). By combining two metrics—one for service and one for product—we satisfy two constituencies.
- Customers—Service measures (e.g., reliable delivery to a customer’s desired delivery time) represent the customer’s view. Better service, we assume, means happier customers.
- Financial analysts— quantifying the product investment, from materials to served goods, serve the needs of the financial analysts. All else being equal, Applebee’s restaurant would rather hold fewer products.
With this view of service and product investment, we have an indication of whether we are making effective use of assets. If we are performing in quadrant A, we suffer from both too much product and poor customer service. Everything is going wrong—despite substantial investment in product, we are losing sales because of inadequate service. This problem could result from holding too much stock of unpopular products or components while stocking out of those in great demand. Another explanation might be that the order processing systems cannot turn stock around quickly enough to meet customer demand—or other operational difficulties.
In quadrant B, we see that it should be easy to provide good service by holding lots of product. Likewise, if you hold too little product (quadrant C), product availability will drop and customer service will suffer. However, this simple matrix does not capture all aspects of the service performance problem. While the poor service indicated by quadrant C might be explained by insufficient stocks, other factors might contribute. More specific measures of performance might help to reveal the underlying cause of the imbalance between product and service.
Quadrant D is where most firms hope to operate. Here we are able to achieve high levels of customer service with relatively low product investment—so product assets are being put to highly productive use. Of course, many operational factors could contribute to this success including fast cycle times, good customer information, or uniformly accurate forecasts.
Products & Services
Birthday (free dessert)
Continuous Quality Improvement
Work Practices(Major Activities or Processes)
Apologize for bad
Help in order
Best possible service/ products.
Some stuff in kitchen
Big LCD TV screen
The manager 🙁 MAX FICEK)
- What message the make (Applebee) delivery to customers? Services or products?
First restaurant for Applebee’s opened in –in Atlanta in November 1980 and named TJ Applebee’s. Applebee’s deliver both services and products.
- What do you expect customers to acquire from Applebee’s?
Customers are looking for best possible services and products.
- Does the survey work? What feedback Applebee’s obtain from the survey? Doe Applebee’s have other methods to communicate with customers?
Customers are cooperating to fill out a survey that Applebee’s provide. However, it could be by e-mail, phone, webpage or even when they come to the restaurant. Applebee’s provide this survey to improve their services. They do it approximately three to four times a year.
- What customers’ response to promotions or discounts and the to-go service (offered since2004)? Do they increase the sales?
Customers response to promotion or discount very successfully and sales are increased since 2004. The discount may go up to 10%. Applebee’s is offered promotion to seniors, military, hotels, motels, school and free dessert in birthday.
- What things you can do to improve the whole services in the restaurant?
Applebee’s improve their services by guest services. They train their employees and how they talk and help customers to get their needs.
- What is the procedure for food ordering? How long does it take for per meal or order? (averagely)
Customers come in and everything is checked. Then there is a touch screen between the employee and the kitchen. So, the order goes through it. The order probably takes 42 to 48 minutes for one table.
- Do you order ingredients from the headquarters or local food suppliers?
Applebee’s order ingredients from local distributors like Food Services of America and others. They do that two to three times a week.
- What is the most popular food in this Applebee’s?
There are of food in Applebee’s. However, different customers like different food. Applebee’s has variety of food in our menu. In fact, the most popular food is order two by twenty.
- How do you deal with the customers’ complaints about food and services
Complain happens some time, but we deal with it. We try to fix the problem and in some situation we give gift card or we apologize. We have to fix it even if whatever it takes.
- Do you have any interesting story?
There was a person who was coming every day with himself sometimes or with his family. Then he didn’t show up again. Later Applebee’s staff found out that he is in the hospital. However, the manager signed a card with his name and his employee’s names and went to visit that person in the hospital. So, the customer become happy and thanked the manger. When that person left the hospital, he had a big party and invited his friends and family in Applebee’s.