1.

The purpose of the report

The purpose of this report is to carry out the in depth study towards

the production area of Secret Recipe restaurant and the common

challenges faced as well as the solution imposed by the restaurant
operators. Food production can be defined as the phase food flow
which means start from purchasing of food till to serviced the customer
and it concerned with the processing flow, semi- prepared, and
prepared food stuffs(Gregoire&Spears, 2007).
2.0

Area of the report

In this report, there are mainly five major process in food production

will be discuss briefly in this report which are production decision,

production forecasting, production scheduling, ingredient control and
assembly and production control. Each area that involves in food
production plays an important role in order for restaurant runs the daily
operation smoothly and enable them to sustain in the food and
beverage for long term.

3.0

Background of the company

In year 1997, Secret Recipe restaurant was established and the

founder is Datuk Steven Sim. This restaurant is successfully brands

their name as the extensive range of the fine quality gourmet cakes.
Recently, this franchise restaurant have over 300 outlets and start to
1

evolve and expand, now it became one of the fastest growing lifecycle
caf chain in world. Some shopping malls in major cities such as
Singapore, Kuala Lumpur Malaysia, Shang Hai and so forth, usually
available to adapt this chain caf concept.
Secret Recipe provides great variety and quality of food at
affordable price that enable them to deliver a value of lifestyle
proposition. By using quality ingredient and providing affordable price
to the customer, it has successfully created a new lifestyle cult and
compromising of a loyal base of food and cake lovers.
Secret Recipe offers a personalized and friendly full service dining
experience for the customer while accompany with modern and
comfortable dining ambience. Thus, it really provides a great respite to
the customer to enjoy food and quality time with friend and
family(Secret Recipe,2014).

4.0

Methodology
In order to identify the challenges that faced in the restaurant and

the common solution that imposed by the restaurant manager,

qualitative research method is use in this report. There are few
advantages adopting qualitative research method in this report. Firstly,
the researcher of the report always identify the contextual and setting
factors as they are interrelated with the respective area that study. In
this case, the research method that applied in this report enable us to
identify the challenges and common solution thats take place in

production area in food industry. On top of that we use primary

qualitative method to generate a tentative but explainable theory
towards the phenomenon. For instance, to develop more understanding
in this report, some of the food and beverage theories and terms are
commonly used in report and enable us to conduct cross case
comparison and analyze the report(Nicholls, 2011).
By completing this report, there are several ways we adopted such
as using online databases, informative journals and articles, textbook
and reference book. We formed questionnaire base on the five areas in
production area in order to carry out the interview session with the
restaurant manager. Before the questionnaire being distributed in order
to carry out the interview process, preliminary trial was conducted in
order to ensure all questions were comprehensible and understandable
when answering. Lastly, benchmarking the information that had gather
with the theory or concept reflects in textbook, online databases or
journal and article are clearly presented in this report in order to carry
out the in depth analysis.
5.0 Production Decision

5.1.1 Interview
Question:
How you usually predict the sales of the day? Did you face
any challenge when you? Is it easy to predict tried to predict your
sales of the day? What you usually encounter when you decide

the quantities as well as the qualities (standard) of food with

limited food cost of the day?

Answer:
The operational manager, Eddie Chew, once he opened his first
Secret Recipe outlet, he had faced the challenge that he could not predict
that the eatings behavior of that particular area. For instance, staffing
control, menu planning, and predict the sales of the day. And these will
cause the new opening restaurant created a lot of wastage and cost as
well. Due to the increasing salary nowadays, the amount of worker will
affect the profit generate by the restaurant. An example had given by Mr.
Eddie Chew, if the main ingredient from Italy did not accept by Malaysian;
it will be difficult to change the menu because printing a new menu will
cost a lot of money. For new opening restaurant, it might be hard to
decide the quantities of food with limited food cost. He had faced problem
of lack of storage or too much of storage.

5.1.2Solution
Question:
Is there any solution you imposed in order to solve the
problem?
Answer:
4

Mr. Eddie Chew had announced that it is likely to predict your sales
if you have more outlets rather just have one. It will be more flexible while
come to control the staffing and the food control such as cake. Mr. Eddie
chew said that you could transfer the staffs and cakes to the outlet which
is busier. By using this method, it can reduce the staff costing and reduce
the food wastage as well. Moreover, promotion such as set lunch is
provided during non-peak hours to hook the customer. To prevent
changing a new menu, Mr. Eddie Chew had suggested to print booklet or
piece of paper to let Malaysian to try the product, and launch the product
when they feel comfortable. With 16 years experience, he could predict
that the stock of the daily use. Other than that, restaurant have to built up
a good relationship between supplier to ensure that the food quality and
safety. The root cost can be reducing by having a good relationship with
the supplier.

Lastly, the delivery system of Secret Recipe had been

improved; urgent order is available due to headquarter is around his

outlet.

5.1.3 Analysis

Production decisions are made each day in foodservice operations

concerning the necessary quantities to produce and the standards of
5

quality

that

must

be

maintained

within

the

limitations

of

costs(Gregoire&Spears,2007). Thus, predicting the daily sales is important

to reducing the wastage. However, predicting the daily sales is still a
difficult task for every single restaurant. If prediction does not take in
concern, the restaurant will make the lost on overstaffing or overstock.
Moreover, restaurant manager have to decide on the promotion and the
product to be sale during the peak and non- peak hours. If the promotion
is not given, people are unlikely to dine in your restaurant during the nonpeak business hours. Thus, manager has to understand what product and
promotion should be given to reducing the waste; and making the lost.

We can analyze that the Secret Recipe methods does not differ
much compared to the methods that are described in the textbooks and
journals. According to QSR research, the minimum wages in California is
set to rise by $1 to $9 an hour on July 1, 2014, and will increase to $10 in
2016. As to overcome this, strategies are needed to reduce the cost
absorbed by the restaurant. They reduce the service time, implement
technologies which can enable more efficient ordering, optimization of
labor hours and test new service formats. In comparison, Secret Recipe
practice interchangeable method which is relocates the employees to
another outlet which required more employees during the peak times
(Marek,2013).

Secondly, offer promotion and discount method to generate revenue

during non-peak times. Fully utilize the existing assets can push up the
6

sales. By this method, restaurant manager can observe the daily sales to
determine whether the sales are increasing or which product will get the
highly return. For examples, new lunch program can be very successful for
a restaurant which located in area with many businesses nearby; and they
can provide set meal which may give customer more choice and yet the
price which is reasonable as each meal is completed by food, drinks and
some appetizer. In comparison, Secret Recipe is using the method of
promotion and discount to attract the customer dine in the restaurant
during the non-peak times (Marek,2013).

From the QSR research, a restaurant manager should understand

that reducing the price during the non-peak hours. To avoid huge
investment on printing the new menu, the restaurant could invest to
install the digital menu boards or tablet- based menu. By using digital
menu, the restaurant could easily change the price or launch the new
products.

As the increasing the restaurant chains, installing the digital

menu are more cost efficient compared to printing the new menu. Other
than that, digital menu is enabling to record the data of the daily sales;
and easy to implement price testing. However, Secret Recipe practices to
use the method of printing the booklet or a piece of paper to promote
their new products instead of printing a new menu (Marek,2013).

Lastly, having a good relationship with supplier can ensure the food
quality and safety. According the ABC research laboratories, 10-15
suppliers are required to cover the food quality and food safety. Best
supplier will supply the best product with ensuring the food quality and
safety. To deal with the supplier, restaurant manager should go to
manufacturing location, because manager can test the product by
themselves to ensuring the quality of the product. Lastly, it is important to
communicate the result with the suppliers about the good or bad of the
product. Best supplier will improve their product that they agreed to in the
product specification. Besides, communicate with the suppliers can
enhanced the relationship between the suppliers and the restaurant.
Secret Recipe had put a lot of effort of building a good relationship with
supplier. Thus, the food quality and safety can be ensured and maintain
the satisfaction of the customers (Stephens,2013).

5.2Production Forecasting

5.2.1 Interview
Question:
What is the factor you will consider when determined the
storage level of inventory for the restaurant operation?
Answer:
According to the interview with the manager of the Secret Recipe,
Mr. Eddie Chew, the restaurant faced difficulties in forecast their proper
storage level of inventory when starting their new restaurant in new
communities. They cannot estimate the accurate storage level of
inventory for the restaurant for the daily operations which caused
overproduced in the non-peak season, and underproduction in the peak
season. For the non-peak season, they forced to store food in chiller in
order to salvage the food to cut cost, but at the end certain foods started
to break down and lose quality. For the peak season, they hardly to run
the business normally in some special season like Valentines Day, and
Christmas. This is because the restaurants food is out of order which lead
to reduce of customers and ruined of image.

5.2.2 Solution

Question: When occurred shortage or exceed, what is the

procedure you will use to solve the problem?
Answer:
According to the manager of Secret Recipe, they solve these
problems by forecasting the storage level of inventory based on the
collection of data and experience from the past. They identified their
regular customers, monitor their customer behaviour and patterns to
forecast the production based on the managers judgement. Furthermore,
they will check the storage to decide what type of product need to be
restocked before the business operation start. After they have chosen the
products, they will inform the head quarter to transport the products to
the outlets within the specific time. Lastly, they have more flexibility on
transport the products because of the number of outlets are many and not
far from each other. They can transport the storage from one outlet to
another outlet if the outlet appears overproduction or underproduction.

10

5.2.3 Analysis
Forecasting defines as to determine events in the future, which
provides a database for decision planning and making. The intuition of
forecaster and the use of past data in a tested model are required to
estimate the future needs as a function of constitutes and production the
basis for procurement (Gregoire, Spears 2007).
In order to satisfy guest, restaurant manager need to make sure
that the storage level of inventory is always meet the needs for service. If
the storage level of inventory is not met, the restaurant will face the
problem of overproduction and underproduction. Overproduction will
generate extra costs because the leftover high-priced food as an
ingredient in a low cow-cost menu item will reduce profits in order to
reduce over production costs. Besides of the higher food cost, carrying
and planning out to salvage those foods incurs high labours cost that
could have been avoided. It will also damage the image of the food
service production from guest perception because guest always suspects
that leftovers are being used. Underproduction will lead to guest
dissatisfaction if the menu item is unavailable and they usually will have
difficulties in choosing others selection. In addition, as the restaurants
menu is out of order, it is hard for restaurant to generate profit as usual
for the business operation.

11

There are some methods that practiced by the Secret Recipes

manager to forecast the accurate storage level of inventory for restaurant.
Some regular customers return to the same restaurants week after week.
Restaurants can use retention statistics to find out the likelihood that
these regular customers whether will continue to patronise the restaurant.
In order to engage this type of forecasting, restaurants manager need to
monitor and identify regular customers, and identifying patterns, chart
their visits. If they discover the customers behaviour, they can use this
information for forecasting purposes. According to Gregoire and Spears
(2007), Season and Existing Business Calculation are the methods that
practiced by the Secret Recipes manager to forecast the accurate storage
level.

Season is also one of the indicators for restaurant. The restaurant

manager can use the seasonal statistics to forecast the sales if they can
determine the pattern that appeared in different season. For example,
customers may not cut down the frequency to dine in at restaurant if
there is a rainy season. Restaurant can forecast the inventory level of
storage more accurately based on sales data from the same season of the
year before(Gregoire&Spears, 2013).

As we can see from above, Secret Recipe restaurant used some of

the solution that shown in textbook that we study. They used existing
business calculations and seasonal history to collect the data from the
past. From the data, they will identify their regular customers, monitor
12

their customer behaviours and patterns, and determine the patterns of

the customers that appeared in different season to anticipate the accurate
storage level of inventory to sustain the business.

They also practiced some methods that did not mention by the
textbooks and journals. The secret recipes manager practices the lean
production

theory

that

implement

by

Toyota

&

Taiichi

Ohno (Searchmanufacturingerp.techtarget.com, 2014). It is an assemblyline methodology developed for Toyota by the Japanese. It is aims to
cutting out waste to save cost for the business which more efficient and
responsive to market needs. Through the comparison, the secret recipe
manager practice the just in time basis to transport the products just as
they are needed to eliminate the need to maintain large stock levels. The
manager also has the flexibility to control the stock levels when occur
stock out or overstock as they can transport products from one outlet to
another outlet.

13

5.3 Production Scheduling

5.3.1Interview

Question: During the peak hour or non- peak hour, how usually
you schedule task( assigned your staff) to your staff? Is there any
challenge that you faced when come to staffing problem? Besides,
based on your experience, when comes to menu planning is there
any challenge that you encounter before?

Answer:
As it stated by manager of Secret Recipe restaurants, faces problems such
as non-sufficient staff during busy hours days, which lead to customers
complaints. One is the main problem to find sufficient quantity of
employees is unwillingness to work among local people. Majority of the
local people do not want to work full-time, because of small salary and
long working hours.

14

Menu planning is next challenge when it comes to production scheduling.

The major problem is arises from the target market, which is very
diversified. Thereby, it is difficult to plan menu to satisfy the big amount of
the different tastes.

5.3.2 Solution

Question: Is there any suggestion you deal with this kind of

situation?
Answer:
According to the Secret recipe manager, they anticipate peak-hours
days and solve this problem by offering part-time job for the college
students and foreigner labor. Anticipation of the peak times is very helpful
when it comes to public holidays, because amount of the customers will
increase. So that, manager plans to add in more staff and start to promote
part-time jobs for the students and foreigners.

Next solution is using of the cross-training method by the Secret

Recipe. Before start of the work in the secret recipe, employees educated
15

in six departments such as, cashier, administration, service, food waiter,

management and planner. This allow employee to handle with few jobs
when restaurant is overloaded with the work. Also, it helps to increase
effectiveness of performance during peak-hours.

Lastly, manager of Secret Recipe introduced solution, which calls

interchangeable employees. As Secret Recipe has many outlets in
different regions it is necessary to anticipate period of high-sales time in
each region. Thus, practice of interchangeable employees allows
transferring employees from outlets with low-sales period to outlets with
high-sales period. Thus, this technique is convenience to use, because it is
cost-efficient.

As target market is one of the major problems when it comes to

menu planning, Secret Recipe put effort to study it. As it said by manager,
the solution is to identify all preferences of the market and plan the menu.
For example, Secret Recipes menu offers wide range of dishes from the
Asian classic, Western cuisines, vegetarian food and pastry. This menu
planning is based on thoroughly studying of the target markets
preferences and characteristics.

5.3.3 Analysis
Employee scheduling is one of the most crucial part of production
scheduling. The system of scheduling staff will depend on restaurant size,
the sales volume and the total number of staff. Restaurant managers
16

must to make sure that there is always right balance of staff to handle
with customers. If balance is not made, restaurant will face with problems
of

understaffing

or

overstaffing.

According

to

Knight

(2000)

and

Kotschevar (2000), understaffing put a lot of stress and challenges for the
staff and decreases level of the service, which in turn will lead to
customers dissatisfaction. Whereas overstaffing will generate increase in
expenses and lead to laziness between staff members. These difficulties
caused high labor cost, customers dissatisfaction and decrease in profit.

We can analyze, that Secret Recipe uses some methods that are
described in the textbooks and journals. First of all, most commonly used
method to effectively operate during peak and non-peak times, which
described by textbook is Anticipation of peak and non-peak times. This
method based on analyzing target customers preferences and external
environment, such as customers habits and public events. Thus, it will
generate information of possible high-sales period or low-sales period. As
a comparison, we can see that Secret Recipe practicing anticipation of
peak and non-peak times. Moreover, when it is known that high-sales
period will start, Secret Recipe promoting part-time job and add-in more
staff.

Secondly, according to Manage my restaurant (National Restaurant

Association, 2010) it is efficiently to practice cross-training technique to
the staff. It requires staff to be multi-tasking and manage more than one
area in restaurant. For example: server that can do cashier and waiter
17

responsibilities will increase flexibility of the work and effectiveness. This

also practice when some employee is on sick leave or vacations. In
comparison, Secret Recipe is practicing this method, where their staff
educated in six departments to know many areas of the restaurant.

Apart of all information given by the textbook, Secret Recipe

developed their technique, which is very efficient and convenience to use.
This practice shows us that employee from different outlets can be
interchangeable. That means, part of employees from outlet, where
business is in smooth rhythm, can be transfer to the Secret Recipes outlet
with is high-sales period. So that, it is cost-efficiently, as no need to hire
more staff.

Lastly, in accordance with textbooks, menu-planning issues needed

to study in relation with target market preferences. Thus, it is necessary to
be aware of target markets preferences and tastes. Nevertheless, Secret
Recipe puts big effort in researching of target market. This help to identify
which food to add to the menu and which cuisines will be used.

5.4 Ingredient control and assembly

5.4.1 Interview
Question:
18

Is there any challenge when come to standardised the recipes or

cooking methods (in order to preserves the quality of products) in
the restaurant? When comes to storage issues, where you usually
store all the products as well as do you feel when come to
preserving

do

you

faced

any

challenges

before?

(ex:

raw

material)? Is there any ways or method you used to solve this

problem?
Answer:
According Mr Eddie, most of the ingredient in the restaurant outlets
are using instant noodle in order to maintain their quality. R and D
department standardize the menu based on packet style. He states that
an example the seasoning powder use for curry noodle are pre- done by
standardize it using 15ml of water and 2 packet of seasoning to create the
flavour that standard in all outlets, this is how they assemble their
ingredient.

For ingredient control in terms of quality and quantity , their kitchen

consist complete set of chilller and freezer for them to keep the ingredient
when the headquarters sent the ingredient to outlets. In order to maintain
the freshness of product and quantity needed for daily sales, secret recipe
main headquarter will distribute the product quantity that request by each
outlets by everyday and each outlets have to fax in quantity needed
before 2pm evening due to the headquarter need time to collect the order
and sent to every outlet on time. There is no any significance challenges
19

address by the restaurant manager due to they had practice per day order
system in order to maintain the freshness and quality predicted in per-day
sales.

5.4.2 Analysis

To manage a restaurant, restaurant manager need to face numerous

challenges. One of the challenges that need to face by the restaurant is
ingredient control and assembly. It define as a control of the food item
which restaurant makes to prevent wasting and unnecessary expenses
and ensuring the product quality(Gregoire&Spears,2007).

One of the practices that adopted by the secret recipe to control

their ingredient cost is by standardize their recipe. This concept means
the recipe that used are tried and tested for several times to produce
good results and the same quantity and quality of ingredients will use in
preparation of food. For instance, secret recipe adopted instant noodle
concept which they standardize their seasoning powder for their curry
noodle in order to produce same quality of food taste. Thereby, by
standardizing recipe will provide more accurate information in term of
food producing cost control because the same amount or qualities of
ingredient are pre- determine. This concept adopted in Secret Recipe
seems work well in most off the outlets(McDougall,2010).

20

Another way for the Secret Recipe to control their ingredient is

through their suppliers. It is understand quality of food depends of the
quality of ingredients and it is crucial to control for efficient running of
business, however secret recipe manage to control the quality and
quantity of the food or ingredients due to they have trusted supplier Secret Recipe headquarters. Since the headquarters of secret recipe are
located near to the outlets therefore is easy to obtain fresh ingredient and
correct amount from them. Its is undoubted that the quality of ingredient
will vary event from the supplier, in this case Secret Recipe whose own
their own supplier and dominated the supply chain, therefore could able to
obtain correct amount of quantity and quality(Gregoire&Spears,2012).

However, variability still has to be monitored and inspected. Secret

recipe in order to developed better ingredient control and assembly, they
also implement proper storage. When comes to storing, the ingredients
have to be stored in proper condition such as suitable temperature and
moisture to prevent from contamination and minimize deterioration. It is
important to have scheduling of the arrival of ingredient to control the
storage time. Since secret Recipe order their ingredient daily basis,
therefore

they

underproduction.

can

keep

minimum

stock

to

prevent

over

or

Lastly, it is necessary to ensure the condition of the

storage place, therefor needed to be monitor always to ensure is there

any damages and eliminate them. In this case, Secret Recipe has done a
significance

move

in

their

control

ingredient(Gregoire&Spears,2007).
21

and

assemble

their

5.5 Production Control

5.5.1 Interview

Question:
When comes to consumption of utilities (such as electricity, water,
food wastage and methane gas) is there any challenge you faced
when you encounter before with overconsumption of these
utilities?
Answer:
According to Mr. Eddie, there are two main challenges that faced by
the restaurant previously when comes to production control. Firstly due to
foreign employees they employed last time, they cant operate the coffee
machine because all beverages is using the machine to measure correct
amount, therefore create a lot of wastage. It is understand that utilities
consumption in restaurant is usually high in term of gases, electricity or
water.
Secondly, is the lighting system in the restaurant outlet, according
to the manager states that they using halogen lighting in the outlets as
well as they on the billboard of SECRET RECEPI for more than 12 hours
a day is not just create high utilities bill but also creating a warm

22

environment due to halogen lighting provide more heat. Thus they need to
turn high air conditional to keep the dining area cool.

5.5.2 Solution
Question:
Is there any good this solution from you to solve issues?
Answer:
There are two solution mainly that imposed by the manager. Firstly,
they providing training session for their staff to developed their skilled.
When foreign workers who went through the training, they equipped with
skill and able to handle the machine well nowadays therefore he states
that cut down the water bills compare previously. Besides, he say
implementing coffee machine will definitely cut down the cost of water
because the machine will dispense the water accurately depends what
types of drinks you order. According to the manager, in the future outlets
he will change all the halogens light to LED direct lighting system because
it is more cost efficient due to it able to save 30% of electricity bill
compare adopting halogen lighting system.

5.5.3 Analysis

23

Secret Recipe understands that one of the major costs is come from
utilities bill. Therefore, energy conservation is important to practice in the
restaurants outlets. For instance as in the interview session, the manager
had imposed that they will install the lighting system to energy efficient
lighting, this will help the restaurant save at least 30% of the electricity
bills from now.
They understand that there is no way can save electricity so they
improved and change their lighting system to LED in order to minimize the
expenditure for utilities bill. Moreover, they also implement energy
management that able to maintaining a record keeping system for
tracking the cost of utilities as well as monitoring the equipment
use(Gregoire&Spears,2007). They understand that by providing training
program to the staff, will save their cost as well due to skillful staffs are
more good in managing the operations therefore is able to minimize the
utilities bill.

6.0

Recommendation
24

Its clearly shown above that Secret Recipe restaurant practices total
quality management(TQM) in their management system. Total quality
management can be define as the whole organization is manage in the
way of surpassing all dimension in the food industry regarding to services,
product

and

customer

satisfaction(UKessay,

n.d).

However

it

is

understands that TQM is only applicable well in theory but not really
practicable in real industry due to several reasons.

Firstly, it is understand that total quality management could not really

look into quality of product due to quality of product is hard to maintain
and not much restaurant outlets to maintain their quality in anytime.
Besides, total quality management also emphasize on employees must be
up to standard that should equipped with skill, creative, innovative, but as
shown Secret Recepi facing problem of labor shortage as well too much of
foreign worker work in thus, cant really fits in this concept. TQM also as a
barrier to practice in franchise restaurant because Secret recepi had its
own suppliers which known as headquarters as well to supply the stock
and usually stock already stay for few days therefore, product quality is
not fresh. This is not fulfilling to practice TQM since TQM always
emphasize on the quality of product(UKessays,n.d).

25

We recommend that automation concept should be their core concept

that implement in managing their restaurant to sustain in long term.
Automation concept defines as the creation and application of technology
to monitor and control the food production as well as delivering of product
and services(Caldwell,2013). Service time nowadays perceive by the
customer equals to quality service. Due to the increasing of wages, it will
affect the branch restaurant to hire more employees to minimize the
service time. Secret Recipe had implemented a method by transfer the
employees to another busier outlet to reduce the labor cost and service
times as well.

However, the solution provided by Secret Recipe is not

applicable to solve these problems. By keep transferring the staffs to

another busier outlet will cause the emotional labor because of the staffs
do not have time to rest and keeping serving the customer in busier
outlet. The following recommendations are made concerning the services
time and labor cost, streamline complex menu, advanced technology and
the concept of instant noodle.

It is recommended that the restaurant should look to streamline

complex menu in order to reduce the service time. By increasing in
complex menu will spoil the customer with choice; and longer time to
make an order are required to let the customer to make the final decision.
Thus, this will slow down the service time by increasing in complex menu.
According to In-N-Out Burger, they had proved that a complex menu is not
necessary for success.

26

Next, install the digital menu that enables more efficient ordering to
reduce the labor cost. Thus, hiring more labor are not necessary due to
the customer can order whatever they want on digital menu. Other than
that, installing the digital menu can reduce perceived wait times. By
installing some entertainment or fun facts, can lower a customer
perceived wait times. Given something to customer to do while waiting for
their food can help a restaurant to extend their services times. In addition,
it is more convenience for a restaurant to change their menu or giving a
promotion without printing a new menu. The investment on new menu is
enabling to save up by replace the menu with technology.

Lastly, the Research and Development (R&D) of a restaurant can

develop a new product with a concept of instant noodle. Therefore, nonskillful staff is not required to operate the kitchen; and the labor cost can
be saving up by just hiring the staff to do the final cooking. For a very
successful example, Sakae Sushi from Singapore did very well on this kind
of concept. All the ingredients are import from headquarter in Singapore
and even the sushi is mold by the machine.

27

7.0

Conclusion
In summarize, Secret Recipe is a well establish franchise restaurant.

This is because in overall picture, this restaurant is well managed in

terms of their food production area. Through the interview session with
the operational manger in One Utama outlet, this report clearly shows
that what are the challenges that faced by the manager in food
production area and how he imposed the suitable solution to resolve
the problem. The report is carry out in depth analysis on the five
production area involve in the restaurant outlets which are production
decision, production forecasting, production scheduling, ingredient
control and assembly and lastly production control.
The five area of food production are benchmarking the reality
practices in industry with the concept or theories that stated in
journals, articles or textbook and it aims is the concept or theories that
practice by the operational manager is suitable to used in the
restaurant outlets.

This report is basically using qualitative method

when carry out the analysis due to involve the interview session with
the manager and all the reference and justification used to support and
strengthen our report are mainly from journals, articles and textbook. It
is understand that in order to run the restaurant well, manager should
able to make a good decision that will able to forecast the sales of the
day to prevent underproduction and overproduction.

28

On top of that, one of the factors that will determine the food
production is staff management which known as production scheduling.
It is understand that sufficient and skillful staff helps to runs the
restaurant operations smoothly. Ingredient control and assembly will
helps to save the restaurant operational cost if the manager are doing
his job greatly and lastly it is understand that utilities bill in restaurant
is one of the unavoidable cost therefore, they imposed few solution to
control their utilities bills to maximize the profit.
This restaurant are practicing total quality management (TQM)
which is not really practicable in real industry but its works well in
theory, therefore look into overall picture we recommended new
concept automation and few ways for the restaurant that able to run
the restaurant more smoothly compare now. Last say, food production
area will directly impact the restaurant business if is not manage well.

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