The portfolio activity for this chapter is Developing Your Planning Skills.
Read the following highlight
about Darden Restaurants, and answer the questions that follow. Darden Restaurants Inc., which
operates chains such as Red Lobster, Olive Garden, and Bahama Breeze, is one of the largest casual
dining restaurant companies in the world. Darden is exploring potential opportunities for growth,
and you have been hired to develop a new restaurant concept for the company. Executives at Darden
are particularly interested in concepts that are consistent with the company’s mission, which is “To
nourish and delight everyone we serve.” Darden has committed the funds necessary to test your new
concept restaurant in an area around your school. If the new concept works well in your area,
Darden may seek to expand the concept in a larger geographical area. Your mission involves
establishing a plan to introduce this new concept restaurant. After deciding on your new concept
restaurant, Darden wants you to work through the first five steps of the planning process: (1) state
organizational objectives; (2) list alternative ways of reaching objectives; (3) develop premises on
which to base each alternative; (4) choose the best alternative for reaching objectives; and (5)
develop plans to pursue the chosen alternative. In the space provided here, respond to the following
inquiries regarding the first five steps of the planning process.
Q1) Briefly describe the most important characteristics of your new concept for Darden.
Ans: Concept Name: Fresh Fusion
Fresh Fusion is a modern, casual dining restaurant blending global flavours with healthy, sustainable
and variety of ingredients. The most important characteristics would be the cuisine, menu,
ambiance, target audience, unique features and target location.
Cuisine: Internationally-inspired dishes with nutritious twists (e.g., Korean BBQ bowls,
Indian-inspired vegan curries, Italian pastas, and Mexican-Japanese Fusion)
Menu: Seasonal, locally sourced ingredients, organic options, and transparent nutritional
information.
Ambiance: Vibrant colours, eco-friendly design with recycled materials, living green walls,
digital menu (through the online menu scanning) and cozy.
Target Audience: Health-conscious professionals, families, students seeking flavourful,
wholesome meals, young adults finding trendy food.
Unique Features: Build-your-own bowls and wraps, seasonal menu changes, online ordering
and delivery integration and community events and wellness workshops.
Target Location: Near universities or colleges, health-conscious communities, upscale
shopping centres or famous food streets.
Q2) Develop three organizational objectives for your new restaurant.
Ans: Based on the Fresh Fusion concept, the three organizational objectives can be customer
satisfaction and Loyalty, revenue growth and profitability and brand awareness and community
engagement.
The customer satisfaction and loyalty objective can be achieved through average customer
satisfaction rating reaching 92% within the first six months of operation, with a maintenance rate of
75% among repeat customers. The key performance indicators (KPIs) can be conducted through
regular customer survey, online reviews, and tracking of the most ordered menu.
The revenue growth and profitability targets can be to set annual revenue within the first two years
while maintaining a profit margin of 20% or more. It can be monitored through monthly sales
growth, analyse menu item profitability and adjust pricing and promotions strategically.
Brand awareness and community engagement can be established by showing Fresh Fusion as a
leader in healthy, sustainable dining, by partnering with local organizations and hosting community
events within the first year. It can be monitored through the track of social media engagement and
follower growth, monitor local press and media coverage and evaluate partnership outcomes and
community event attendance.
Q3) Choose one of the three objectives to explore in more detail. List three alternative ways to reach
this objective.
Ans: The one objective that can be explored in detail can be the customer satisfaction and loyalty.
The three alternative ways to reach this objective can be the following:
Alternative 1: Personalized service and staff training: Product knowledge, customer engagement
conflict resolution, customized menu recommendations, birthday/anniversary, rewards Loyalty
program perks.
Alternative 2: Digital engagement and feedback: Online ordering and delivery, real-time feedback
and review submission, menu browsing, order tracking, instant feedback collection.
Alternative 3: Quality food and menu innovation by introduce seasonal menu updates with: Locally
sourced ingredients, healthy, unique options, regular taste testing, supplier partnerships, customer
feedback-driven menu adjustments.
Each alternative has its advantages and disadvantages. Personalized service enhances customer
experience but it requires significant training investments. Digital engagement increases feedback
and efficiency but requires a necessitates l technology investments. Quality food and menu
innovation drives satisfaction whoever requires ongoing menu development and supplier
management.
Q4) Develop premises to evaluate each of these three alternatives.
Ans: The premises(bases) to evaluate each of the three alternatives for achieving the customer
satisfaction and loyalty objective:
For the Alternative 1: Personalized service and staff training the premises can be the customers value
which would be leading them to feel valued, understood, and appreciated. Fresh fusion meets
individual needs, build trust, and enhance loyalty, creating a deeper connection between the
customer and the brand. The other bases can be the staff knowledge and empathy directly towards
the customers satisfaction, by ensuring that customers receive accurate information about the menu
and feel understood.
For the alternative 2: Digital engagement and feedback premises can be the real-time feedback
improves service quality and responses by allowing businesses to quickly identify issues that are
informed by the customers, make adjustments, and address customer needs immediately this would
lead to faster resolutions and higher customer satisfaction. The other bases can be the online
ordering and delivery enhance customer convenience, by allowing customers to browse menus,
place orders, and pay from the comfort of their homes or on-the-go. This process saves time, reduces
effort, and often offers a wider selection of options for the customers. Additionally, delivery services
bring orders directly to customers, making it easier for them to enjoy their favourite foods or
products without any hassle.
For the alternative 3: Quality food and menu innovation premises can be the seasonal menu updates
allowing fresh fusion to maintain customer interest, by introducing fresh and varied offerings that
align with changing tastes, ingredients, and occasions. These updates create excitement and
anticipation, which would encourage repetation of visits as customers seek new cuisines
experiences. The other bases can be the locally sourced ingredients appeal to health-conscious
customers, because they are fresher, more nutritious, and support sustainable practices, aligning
with their focus on healthy, natural food and they are the main target audience of the restaurant.
Q5) Based on these premises, choose the alternative that is most likely to reach the objective.
Ans: The best recommend alternative can be the personalized service and staff training, as it allows a
direct human interaction, fostering emotional connections and loyalty. There would also be flexibility
and adaptability, as trained staff can adapt to changing customer preferences and needs and make
the services on those perspectives. It would also allow competitive advantage to fresh fusion as they
are providing with a more new and healthy cuisines. These can be implemented through the
development of the compressive training programs and monitoring the staff knowledge and
engagement.
Q6) As you think about this alternative, list the significant steps needed to implement this
alternative.
Ans: The significant steps can be the following:
Conduct of customer research to identify the personalized service expectations, develop
comprehensive training programs for staff according to the seasonal menu, establish training
budget, allocate resource, and identify and hire/training experienced trainers.
Training program development can be done through the creating of customized training
materials, design interactive training exercises and role-playing scenarios.
Staff training, can be done by existing staff on new service standards and procedures as well
as conduct workshops and coaching sessions.
Introduce birthday/anniversary rewards and loyalty program.
Monitor customer satisfaction ratings and feedback.
By following these steps, Fresh Fusion can effectively implement personalized service and staff
training to achieve its customer satisfaction and loyalty objectives.