Yonca, thanks for the great post!
I know this company very well and it seems like they are currently doing a good job with their change management program. They could anticipate the industry trends well and took necessary actions as you pointed out. I have some questions to better understand the situation:
1. Did they have difficulties hiring the right talent in selected geographies, given that the countries in the map are mostly developing countries where talent shortage could be an issue? and we all know having the right talent is a must for the success of the program?
2. I am pretty sure having a change management program across different geographies is very difficult. How did they coordinate it so well?
3. Can you give some examples on their selected KPIs to ensure the success of the program?
Thanks again for sharing this very interesting post.
Unbelievable post dear Hailey!!
I believe you should implement these best practices in your own restaurant in the future. I know how passionate you are about both fine dining and operations management. Combined with your skills and background, this just makes you the right person to open a new steakhouse in Manhattan; I am pretty sure it is going to be a success story!
There are some points we need further clarification though:
1. Do you really think most people would actually wake up at 8 am Friday morning to buy the menu online? Isn’t this against the concept of fine dining experience? I am pretty sure this model would not work for “higher-end” restaurants.
2. You mention that they have actually greater transparency on demand and thanks to that they just buy the necessary quantities. Well, this is actually the case for most Michelin star or popular restaurants that operate with a tasting menu concept. They have historical data and most of them are actually fully booked for 1-2 weeks, if not months, ahead. They absolutely have an idea of what they should expect for a given night. I do not see that as a very clear competitive advantage unless you are an average restaurant that suffers from very fluctuating or low levels of demand.
3. I would agree with Anna Marie that the chef’s reputation plays a bigger role in the success of the restaurant rather than the operating model.
4. Is 100$ a fixed price or they actually have a differentiated pricing model for less popular days and hours? For example does the menu cost the same for Monday and Friday nights? If they want to smooth the demand, the dynamic pricing model can be an untapped opportunity for them.
5. No tips? or tips included? or can you actually select how much you want to tip while booking online? How does this impact the service quality?
6. Finally do you really think that their tasting menu is the best in the world? Even better than El Celler de Can Roca’s? or is this comparison for tasting menus under $100?
Again, thanks for sharing with us this great post. I hope MBA Class of 2023 will write about your restaurant in the future.
Great Post Ziyaad!
I am personally very interested in education and it is a great reading to learn a best practice that actually serves a very good cause.
I also served to Ministry of Education in a developing country and I can totally understand how low the teacher quality is and how teaching is not considered as a prestigious occupation. This model would actually work very well in other countries as well. However, I am pretty sure a big source of revenue for them is donations/subsidies from other institutions.
I have to admit that reading through the post, the question I also had in my mind was “are they really profitable?”, but I guess a more important and relevant question is “How can we spread the model to other developing countries?”.
Thank you again!
Very interesting post Gil! I totally understand and share the reservations mentioned above.
– Although it is a non profit organization, I just wondered how they measure the success of their development related initiatives. It seems like they are investing a lot of money on them, but what about the returns? Do this initiatives/programs really reinforce FIFA’s mission?
– I will also do some research on what measures FIFA is currently taking to fight with corruption, which clearly ruined their reputation all over the world
– I also think there might be an untapped opportunity for them in brand licensing related revenues. The number seems quite low to me. They can actually make more money in this area and invest it in their reputation management related initiatives going forward.
Thank you again!