Hard Rock Cafe

The Slitherers

Operations Strategy Hard Rock Cafe Case Study

IPyGO Session 3 16th February 2009

Hard Rock Café Case Study

Hard Rock Café is a rock music themed bar and restaurant displaying memorabilia in each of its branches. It first opened in 1971, but has rapidly expanded in recent years all over the world. We can analyse the company’s strategy using the theory of Operations Management. The company has identified its mission to change from being simply a themed restaurant to be a part of the globalised “experience economy” and to reduce reliance on tourist trade by attracting new markets. To achieve this aim, we have identified the company’s strategy:

Product:

to provide a “dining event that includes a unique visual and sound experience not duplicated anywhere in the world.” Because the brand is so strong, the majority of sales are from merchandise (clothing, etc.).

Layout:

each café is a “museum in the environment of a bar-restaurant.” Location: each café in each location is designed to be unique, for example the café in Rome is different to the one in Paris.

Process:

the company uses an “existing domestic model globally” but also in certain instances, when necessary but because of various risk factors and differences in business practices and employment law, uses franchises in some locations to produce a more customised experience.

Supply Chain:

differences in local tastes and social norms mean that the menu is adapted to reflect this.

Human Resources:

the company creates a dynamic working environment with staff having to fit the image of Hard Rock Café.

Inventory:

the combination of everything the company is (e.g. the menu, decoration, the memorabilia) is such a powerful combination that other companies try to imitate it. Also the collection of memorabilia (artwork, instruments, etc.) is shared and rotated between branches.

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