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Sunset Grill Case

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Background –
Sunset Grill at Blue Mountain (Sunset-at-Blue) located in the Village at Blue Mountain in Toronto is an all-day “fresh to order” breakfast restaurant owned by Bruce Melhuish and his partner. Unlike most diners in the location, Sunset Grill at Blue operates only one shift per day with the hours of operation from 7am to 4pm all year round. The franchise philosophy is to maintain a friendly environment serving made to order fresh and healthy food. To retain this image, Sunset Grill selectively approves the owners. It is one of two Sunset Grill franchises located in Toronto’s tourist destinations. This location has contributed to both the success and some challenges to the franchise owners. For example, due to being located in a tourist area, many customizations with the layout, floor finishing, and inventory management added to the initial investment costs. However, in the first year of operations, Sunset Grill at Blue broke even financially. Although Bruce has made this success in the first year, the business currently faces some operational issues which hinder the potential for Sunset-at-Blue to generate more sales.
Bruce has noticed several problems with the restaurant operation which create constraints to their sales generation potential. Several of the problems Bruce noticed are as follows: 1. Queues on weekends could take up to 25 minutes of wait time to be seated by host. 2. Usually 40 to 50 chits/orders waiting in the kitchen to be cooked. Bruce estimates the cooks to spend on average 5 minutes per breakfast items. 3. The average turn time is 32 minutes. This is the time patrons receive their food order to the time they leave. Currently the restaurant has 24 tables indoors, 13 outside which are only in use June through August. The daily sales cycle is dependent on the guest dining time and the frequency of turning tables, moving

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