Mini$-$Case Study: Streamlining Service Operations at Old Crown Coffee Roasters, Fort Wayne

Background:

Old Crown Coffee Roasters, a beloved coffee shop and caf$$ located in the vibrant neighborhood of Fort

Wayne, Indiana, has established itself as a community staple known for its artisan coffee and locally

sourced menu. Despite its popularity and loyal customer base, Old Crown has encountered challenges

related to increased wait times and variable service quality, particularly during peak hours $(7$:$30$ AM $-$

$9$:$30$ AM on weekdays and $10$:$00$ AM $-12$:$00$ PM on weekends$).$ The management team is eager to

address these issues to maintain its reputation and ensure customer satisfaction.

Company Profile:

$-$ Location: Fort Wayne, Indiana

$-$ Employees: $15$ employees, including:

$-2$ Managers

$-8$ Baristas $(4$ full$-$time, $4$ part$-$time$)$

$-5$ Kitchen Staff $(2$ full$-$time, $3$ part$-$time$)$

$-$ Customer Footfall: Average of $200$ customers per day, with peaks of up to $350$ customers on weekends

$-$ Seating Capacity: $50$ seats indoors and $20$ outdoor seasonal seats

$-$ Current Average Wait Time: $12$ minutes during peak hours, with a goal to reduce it to under $5$ minutes

$-$ Customer Satisfaction Rate: $85\%,$ with recent feedback pointing to wait times and order accuracy as

areas for improvement

Problem Statement:

As MBA students consulting for Old Crown Coffee Roasters, your task is to analyze the caf$\text{'}$s current

service operations and develop a strategic plan to enhance efficiency, reduce wait times, and improve

service quality, thereby boosting customer satisfaction and loyalty.

Objectives:

$1.$ Detailed Process Analysis: Examine the current service flow from order placement to fulfillment.

Identify bottlenecks contributing to increased wait times and inconsistencies in service delivery.

$2.$ Workforce Optimization: Assess staffing levels and schedules against customer traffic patterns.

Recommend adjustments to ensure optimal staffing during peak times.

$3.$ Layout and Space Utilization Review: Evaluate the caf$\text{'}$s layout and seating arrangement for potential

improvements to facilitate smoother customer flow and increase comfort.

$4.$ Technology Utilization: Explore the adoption of technological solutions such as a mobile ordering

system, digital menu boards, and an efficient point$-$of$-$sale $($POS$)$ system to speed up transactions and

reduce wait times.

$5.$ Quality Assurance Measures: Propose methods to enhance service consistency and accuracy, including

staff training and customer feedback mechanisms.

Data for Analysis:

$1.$ Detailed Hourly Footfall Data for a Typical Week:

$$ Weekdays $($Monday to Friday$)$

$$ Morning Peak $(7$:$30$ AM $-9$:$30$ AM$)$: $70-90$ customers.

$$ Lunch Peak $(12$:$00$ PM $-2$:$00$ PM$)$: $50-70$ customers.

$$ Afternoon $(2$:$00$ PM $-5$:$00$ PM$)$: $20-30$ customers per hour.

$$ Evening $(5$:$00$ PM $-8$:$00$ PM$)$: $30-50$ customers.

$$ Weekends $($Saturday and Sunday$)$

$$ Morning $(8$:$00$ AM $-10$:$00$ AM$)$: $60-80$ customers.

$$ Midday Peak $(10$:$00$ AM $-12$:$00$ PM$)$: $100-120$ customers.

$$ Afternoon $(12$:$00$ PM $-5$:$00$ PM$)$: $40-60$ customers per hour.

$2.$ Breakdown of Transaction Types:

$$ Dine$-$In: $60\%$

$$ Takeaway: $30\%$

$$ Online Orders: $10\%$

$3.$ Current Staff Shift Patterns and Labor Costs:

$$ Managers: $2(1$ per shift, opening and closing$)$

$$ Baristas: $8$ total; $4$ per peak shift $(7$:$00$ AM $-1$:$00$ PM and $1$:$00$ PM $-7$:$00$ PM$)$

$$ Kitchen Staff: $5$ total; $2-3$ per shift depending on expected footfall.

$$ Labor Costs: Approximately $$18,000$ per month

$4.$ Layout Schematics of the Caf$$:

$$ Seating Capacity: $50$ indoors, $20$ outdoors

$$ Order Counter: Located near the entrance, causing some congestion.

$$ Pick$-$up Area: Adjacent to the order counter, limited space for waiting customers.

$$ Kitchen and Barista Station: Efficiently located but with limited visibility to customers.

$5.$ Recent Customer Feedback and Satisfaction Survey Results:

$$ Overall Satisfaction: $85\%$

$$ Areas for Improvement:

$$ Wait times during peak hours.

$$ Congestion at the order counter

$$ Limited seating availability and space during peak hours

$$ Positive Feedback:

$$ Quality of coffee and food

$$ Friendly staff

$$ Ambiance and location

Assumptions $($please consider further assumptions to give logic to your answers, where you think data is

missing or not provided, make sure your assumed data has face validity; these assumptions are provided

in order to guide your thinking about the problem$)$:

$$ Each barista can handle $30$ orders per hour.

$$ Kitchen staff can prepare $40$ orders per hour.

$$ The goal is to reduce wait times to under $5$ minutes during peak periods.

$$ The current layout contributes to a $2-$minute additional wait due to congestion.

$10\%$ of current orders move to mobile ordering, reducing physical queue by $10\%.$

$$ Average transaction time at the counter is $2$ minutes.

Deliverables $($combine these two reports together and submit a single pdf file at the Brightspace

link$)$: