case study 3 saturday night chili

Case Study 3: Saturday Night Chili You are having friends over on Saturday night. You are in the middle of preparing your famous chili when you realize the can of beans you were going to use is badly dented and bulging . . . that's not good. A second can of beans is dented, but not bulging, so you decide to use it instead. You are adding tomatoes when, “Ouch—what a sting!” The juice has dripped into that nasty cut you got yesterday. You’ll have to remember to get bandages. And now you are going to sneeze, but with tomato juice on your hands, you don't quite prevent yourself from sneezing on the chili . . . oops. You planned to serve cheese and crackers before dinner. You notice the cheese has mould on it. No problem—you scrape the sides of the cheese, slice it, and put it out for your friends.

Gauth ai solution.

Food Safety Errors:

• Using a bulging and badly dented can of beans, which can indicate bacterial contamination and pose a risk of botulism
• Allowing tomato juice from a cut to drip into the chili, potentially introducing harmful bacteria
• Sneezing on the chili, which can transfer germs and pathogens to the food
• Serving cheese with mold on it, which can contain harmful toxins and pathogens

What Should Have Been Done Instead:

• Discard the bulging and badly dented can of beans and opt for a can that is not damaged
• Use utensils to handle food to prevent contamination from cuts
• Cover the chili when sneezing to avoid contaminating the food
• Discard cheese with mold and ensure all food items are fresh and safe for consumption

Psychology Concepts and Terms:

• Food safety
• Bacterial contamination
• Harmful bacteria

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Question: CASE STUDY FOR CHAPTER 3 GOLD STAR CHILI: CUSTOMER AND MARKET FOCUS Gold Star Chili, Inc., based in Cincinnati, Ohio, was founded in 1965 as a family-owned system of franchised and company-owned restaurants. Gold Star operates over 100 regional locations (most of which are franchised, with a few being company restaurants or are co-owned). The Gold Star menu

CASE STUDY FOR CHAPTER 3

GOLD STAR CHILI: CUSTOMER AND MARKET FOCUS

Gold Star Chili, Inc., based in Cincinnati, Ohio, was founded in 1965 as a family-owned system of franchised and company-owned restaurants. Gold Star operates over 100 regional locations (most of which are franchised, with a few being company restaurants or are co-owned). The Gold Star menu is based on a unique, “Cincinnati-style” chili recipe, flavored with a proprietary blend of spices from around the world. The chili is prepared in a central commissary, designed to reduce equipment needs at individual restaurants, promote consistency, and reduce labor costs. Most locations have both in-store dining and a drive-through. Gold Star operates in a highly competitive market against other multilocation chili firms and traditional fast-food competitors such as McDonald’s, Taco Bell, and Kentucky Fried Chicken. It trails its major competitor, Skyline, which has a larger advertising budget, in market share. Gold Star Chili is an active participant with the Cincinnati Restaurant Association and the National Restaurant Association. These connections help maintain awareness of business trends, and advances in new technology. Changing business needs are assessed by reviewing the annual reports of competing restaurants, and an annual market research study that permits benchmarking against the restaurant/convenience food industry in general.

Gold Star Chili defines two key customer groups: direct customers who use Gold Star products and services, and indirect customers with whom Gold Star has other relationships. Direct customers are divided into six customer segments, determined by product use: restaurant customers, franchisees, franchise applicants, retail customers, retail wholesalers, and mail-order customers. Indirect customers include product suppliers, service suppliers, co-packers, brokers/consultants, shareholders, and regulatory agencies.

Gold Star’s mission is to create lasting relationships based upon respect, trust, and support given to customers. More than 70 percent of customers eat in a Gold Star restaurant at least once a month, and 20 to 30 percent eat at least once per week. The loyalty of the customer base permits servers and store managers to get to know customers personally and learn much about consumer needs.

Franchisees are attracted by the relatively low investment required to join the Gold Star family of restaurants, the opportunity to operate a profitable business, and to benefit from the strong brand equity built into the Gold Star name. All department heads treat franchisees as internal customers, and have signed a pledge guaranteeing to return calls within 24 hours. If a franchisee reports a problem with product quality, Gold Star often hand-delivers replacement product the same day. Many franchisees build relationships through local store marketing. Many owner/managers are active in the community with sponsorships of teams or school programs. Gold Star provides owners with school achievement awards they can distribute to local schools.

Visit the company’s website at www.goldstarchili.com to gain a perspective about the company, its menu, activities, and culture. Click the “About Us” link to read about the history and mission of the company. Using the information provided in the case and concepts developed in this chapter, answer the following:

QUESTIONS TO ANSWER FOR HW1 FROM CHAPTER 3

1. What would be some moments of truth in Gold Star’s environment?

2. What implications would the segmentation of Gold Star’s customers have on their customer-focused practices?

3. What types of approaches should Gold Star consider to listen and learn from different customer segments?

Q1. Moments of Truth in Gold Star’s Environment

Moments of truth are critical touchpoints in the cust...

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Andy's Recipe - kwenefew

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Case study 3 – andy‟s recipe.

Andy Garafallo owns an Italian restaurant that sits in the middle of a cornfield near a large midwestern city. On the restaurant's far wall is an elaborate mural of the canals of Venice. A gondola hangs on the opposite wall, up by the ceiling. Along another wall is a row of real potted lemon trees. "My ancestors are from Sicily," says Andy. "In fact, I can remember seeing my grandfather take a bite out of a lemon, just like the ones hanging on those trees."

Andy is very confident about his approach to this restaurant, and he should be, because the restaurant is celebrating its 25th anniversary. "I'm darned sure of what I want to do. I'm not trying different fads to get people to come here. People come here because they know they will get great food. They also want to support someone with whom they can connect. This is my approach. Nothing more, nothing less." While other restaurants have folded, Andy seems to have found a recipe for success.

Since opening his restaurant, Andy has had a number of managers. Currently, he has three: Kelly, Danielle, and Patrick. Kelly is a kitchen (food prep) manager who is known as very honest and dependable. She loves her work, and she is efficient, good with ordering, and good with preparation. Andy really likes Kelly but is frustrated with her because she has such difficulty getting along with the salespeople, delivery people, and wait staff.

Danielle, who works out front in the restaurant, has been with Andy the longest, 6 years. Danielle likes working at Garafallo's-she lives and breathes the place. She fully buys into Andy's approach of putting customers first. In fact, Andy says she has a knack for knowing what customers need before they even ask. Although she is very hospitable, Andy says she is lousy with numbers. She just doesn't seem to catch on to that side of the business.

Patrick, who has been with Andy for 4 years, usually works out front but can work in the kitchen as well. Although Patrick has a strong work ethic and is great with numbers, he is weak on the people side. For some reason, Patrick treats customers as if they are faceless, coming across as very unemotional. In addition, Patrick tends to approach problems with an either-or perspective. This has gotten him into trouble on more than one occasion. Andy wishes that Patrick would learn to lighten up. "He's a good manager, but he needs to recognize that some things just aren't that important," says Andy.

Andy's approach to his managers is that of a teacher and coach. He is always trying to help them improve. He sees part of his responsibility as teaching them every aspect of the restaurant business. Andy's stated goal is that he wants his managers to be "A" players when they leave his business to take on new jobs elsewhere. Helping people to become the best they can be is Andy's goal for his restaurant employees.

Although Andy works 12 hours a day, he spends little time analyzing the numbers. He does not think about ways to improve his profit margin by cutting corners, raising an item price here, or cutting quality there. Andy says, “It‟s like this: The other night I got a call from someone who said they wanted to come in with a group and wondered if they could bring along a cake. I said „yes‟ with one stipulation... I get a piece! Well the people came in and spent a lot of money. Then they told me that they had actually wanted to go to another restaurant but the other place would not allow them to bring in their own cake.” Andy believes very strongly in his approach. “You get business by being what you should be.” Compared with other restaurants, his restaurant is doing quite well. Although many places are happy to net 5-7% profit, Andy‟s Italian restaurant nets 30% profit, year in and year out.

What accounts for Andy Garafallo's success in the restaurant business?

From a skills perspective, how would you describe the three managers: Kelly, Danielle, and Patrick? What does each of them need to do to improve his or her skills?

How would you describe Andy's competencies? Does Andy's leadership suggest that one does not need all three skills in order to be effective?

• Multiple Choice

Course : Labour Relations (HROB 2200)

University : university of guelph.

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