Value chain analysis case study of a restaurant

3. Value chain analysis
 The value chain is concentrating on the activities
starting with raw materials till the conversion
into final goods or services.
 A value chain is a chain of activities that a firm
operating in a specific industry performs in
order to deliver a valuable product or service for
the market. The concept comes from business
management and was first described and
popularized by Michael Porter in his 1985
 Value chain analysis is basically familiarizing
yourself with the business and making
improvisations in the business

4. History
It was formed in the year 2010 .The owner is
Mr. Mohan Nawani along with the 2 partners Mr.
Rajesh Nawani and Mr. Kumar Nawani.T3 i.e. is
Tasty Tangy Twisty is basically restaurant & it
provides catering service as well. It was Mr. Mohan
Nawani’s childhood ambition to be an hotelier as he
grew up reading books of Mr. Vittal Kamat, the great
tycoon in the hotel industry
T3 will soon transform itself from a small
scale restaurant to a boarding lodging hotel industry,
it will be the first one in Pimpri locality

5. Raw Materials NAME OF SUPPLIERS
1. Food grains
Spices
Nandlal Asanand
2. Grocery
Fruits and Vegetables
Star Bazaar
3. Diary Products
Milk, Butter, Cheese, Ghee
(Amul Products)
Basant Agency
4. Bakery
Bread, Pizza base, Burgerbuns,
Monginis and Star Bazaar
5. Water and Soft Drinks India Sales and Basant Agency
These are the permanent suppliers of the restaurant and they are selected because of personal
relations, good quality, products at reasonable rates.

6. Inventory Storage
1-2 Months Daily Basis
2 Weeks
3 Months Daily Basis

7. Number of employees
 Cooks – 4 main cooks with 3 helpers and
utility people
 The customers are served by 3 waiters
 The management staff comprises of 2
managers -1 working at the top and other at
the middle level. The top level handles the
cash counter and maintains the accounts for
sale

8. Problems faced by T3 & solutions to it
Problems
Consistent in
Nature
Fights among
staff
Demand for
long leaves
Demand for
advance salary
Rare in Nature
Inventory
Management

9. Consistent Problems
1. Fight among the staff
Solution – the problem should be communicated
with the top level manager
2. Demand for long leaves
Solution-Allot them fixed leaves .In case of
extension of leave they will be charged penalties
3. Salaries in advance
Solution-Salary should not be provided in advance
for a greater than a period of 2 months

10. Rare Problems
1. Inventory Problem: At time it so happens that the cook
realizes that he is running short of certain raw material.
That needs to be served to the customer immediately. At
such times the raw materials are bought are high prices
Solution-the cook should keep a record of inventory at a
personal level. He should be more careful and intimate
well in advance about storage of raw material
2. Management Problems: The manager sometimes receives
late delivery of raw materials from certain suppliers
Solution-There should be alternate suppliers for such
emergency

11. Reasons Why Customers Visit The
Restaurant?
The customers visit the restaurant because of:
 affordable prices,
 good quality food,
 taste,
 good ambience,
 spontaneous service,
 hygiene,
 cordial customer relations
 cleanliness

12. What Is Done To Achieve The Required
Targets?
 Attractive advertisements,
 discounts,
 attractive offers & combos,
 free home delivery,
 complementaries,
 happy hours.

14. T3’s Value Chain

15. •Management issues

16. T3 Vs Competitors
I. JRRS ERP Software for Hotels & Restaurants
 Safe Inventory, theft
 EOQ
 ROL
 MIN
 MAX
 Material consumption
 Automated PO Schedules
II. Seating Arrangement
III. Availability of parking
IV. Mobile Service

17. Our Suggestions To T3
 CCTV
 Enhance skills so as to reduce wastages
 Account for idle time
 Exclusive variety
 New branches