Ten Years After Bar & Restaurant: A strategic management plan

Date of Publication

2001

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

The past years for the restaurant industry has been marked with the emergence of many players vying for the same market base resulting to intense competition in the dining restaurant industry. Several factors such as the scarcity of good location, increasing price of raw food and beverage products, increasing cost of labor, and limited access to capital have all contributed to the creation of a dynamic and complex business environment. Today, the challenge is greater than ever. The modern-day customer demands more and is gaining increasing power, which in turn results to greater expectations for quality and value. They will have to see and experience added value to remain loyal to the restaurant.

Ten Years After Phils., Inc. is a family-owned corporation that owns and operates Ten Years After, Bar and Restaurant. The first bar and restaurant, Ten Years After - Malate, was opened in October 1994 on M. Adriatico Street, Manila. Consequently, it has managed to operate two restaurants, Ten Years After - QC on Sgt. Esguerra St. and Ten Years After - Ortigas on St. Francis Square, Mandaluyong. Ten Years After has managed to establish itself in the casual upscale dining restaurant industry by combining the concept of entertainment and dining. Each restaurant offers a different theme: TYA-Malate exudes a Victorian ambiance, TYA-QC is Art-deco, and TYA-Ortigas has a Gothic-inspired concept. Combined with each concept are top-of-the-line audio and visual equipment, good-quality food and beverage and a dedication to excellent service.

The current strategies for Ten Years After are: market concentration, merchandising, market development, product development, and quality service. Market concentration is done through activities such as buy one take one promos and sales discounts. Merchandising efforts are in the form of tent cards and promotional efforts in cooperation with beverage companies. These promotional activities are aimed at promoting new products and generating sales for the restaurant. Market development aimed at attracting a younger crowd is done by giving discounts to members of school organizations and sponsoring youth-oriented films. Ten Years After has a variety of product offerings and seek ways to add new menu items to address changing customer preferences.

For Ten Years After, current strategies have been basically anchored on the development of products, and marketing and promotional efforts. However, the core ideology of the organization, which centers on customer service, should be used as the basis for a strategy to gain competitive sustainable advantage for the organization. The importance of the effective management of the delivery of quality service is evident in the restaurant industry. For Ten Years After to be able to manage its quality of service, the following aspects should be carefully addressed by management: a definition of quality and what it means in the organization and establishing quality as part of the organization. The basic component of this strategy is the core ideology of the company - customer satisfaction.

Managing service delivery services involves a dramatic shift in strategic thinking for the management of Ten Years After: (1) from an all consuming attention to marketing and promotional efforts (product) to attention to results of good quality service (total guest experience) (2) from a focus of making jobs employee centered to a focus of both the employee and the guest as part of the process and (3) to understanding and integrating the roles of operation, marketing, and human resources in the delivery of service.

Other recommended strategies for Ten Years After include franchising operations, cost and inventory control measures, intensifying marketing and promotional efforts and a waste management program.

Franchising can provide several advantages for Ten Years After such as capital investment by the franchisee, direct financial returns in the form of royalties on franchise sales and setting-up/management fee, rapid expansion of corporate image, and contribution to central advertising and promotion.

Another area that the company should make improvements on is the cost and inventory control. Because of the rising cost of operations, the company should initiate cost-saving mechanism in order to cut down on costs. The key here is a careful review of operation to find places where waste can be reduced without loss of quality. Reduced costs which come from improved efficiency (rather than cheapening of quality product) will have a great impact on profit for the organization. More sophisticated inventory control measures should also be done by the company by investing on a computerized point-of-sales (POS) system.

The company should also intensify its marketing effort by using the radio and the Internet as a medium for advertising. Engaging in this type of advertising medium could strengthen the restaurant's presence in the industry. The company should also intensify promotional merchandising efforts by selling novelty items bearing the distinct logo of the bar and restaurant. There is also a need to establish a division to handle promotional and marketing efforts of the organization to complement quality service.

They should also be a program initiated by the company on how to address the issue on solid waste disposal. For urban areas where Ten Years After operates, landfill availability is literally disappearing and the cost of disposing garbage is rising. A committed recycling program should be done in order to address environmental issues that are aimed at the business sector.

The recommended strategies are aimed at improving the over-all financial and operational performance of the company. Ten Years After is establishing itself as a restaurant that can provide entertainment through high-quality food and beverage, excellent service and great music.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE1110

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

73 leaves ; ill. (some col.) ; 28 cm.

Keywords

Bars (Drinking establishments)--Philippines; Restaurants--Philippines; Hospitality industry--Philippines; Ten Years After Bar & Restaurant

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