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Case Study on MIS: Information System in Restaurant

Case Summary:

A waiter takes an order at a table, and then enters it online via one of the six terminals located in the restaurant dining room. The order is routed to a printer in the appropriate preparation area: the cold item printer if it is a salad , the hot-item printer if it is a hot sandwich or the bar printer if it is a drink . A customer’s meal check-listing (bill) the items ordered and the respective prices are automatically generated. This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiter’s handwriting. When the kitchen runs out of a food item, the cooks send out an ‘out of stock’ message, which will be displayed on the dining room terminals when waiters try to order that item. This gives the waiters faster feedback, enabling them to give better service to the customers. Other system features aid management in the planning and control of their restaurant business. The system provides up-to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales. This helps management plan menus according to customers’ tastes. The system also compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. In addition, whenever an order is voided, the reasons for the void are keyed in. This may help later in management decisions, especially if the voids consistently related to food or service. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen.

• In the light of the system, describe the decisions to be made in the area of strategic planning , managerial control and operational control? What information would you require to make such decisions?
• What would make the system a more complete MIS rather than just doing transaction processing?
• Explain the probable effects that making the system more formal would have on the customers and the management.

Solution of Management Information System in Restaurant Case Study:

1. A management information system (MIS) is an organized combination of people, hardware, communication networks and data sources that collects, transforms and distributes information in an organization. An MIS helps decision making by providing timely, relevant and accurate information to managers. The physical components of an MIS include hardware, software, database, personnel and procedures.

Management information is an important input for efficient performance of various managerial functions at different organization levels. The information system facilitates decision making. Management functions include planning, controlling and decision making. Decision making is the core of management and aims at selecting the best alternative to achieve an objective. The decisions may be strategic, tactical or technical. Strategic decisions are characterized by uncertainty. They are future oriented and relate directly to planning activity. Tactical decisions cover both planning and controlling. Technical decisions pertain to implementation of specific tasks through appropriate technology. Sales region analysis, cost analysis, annual budgeting, and relocation analysis are examples of decision-support systems and management information systems.

There are 3 areas in the organization. They are strategic, managerial and operational control.

Strategic decisions are characterized by uncertainty. The decisions to be made in the area of strategic planning are future oriented and relate directly to planning activity. Here basically planning for future that is budgets, target markets, policies, objectives etc. is done. This is basically a top level where up-to-the minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales is provided. The top level where strategic planning is done compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. Executive support systems function at the strategic level, support unstructured decision making, and use advanced graphics and communications. Examples of executive support systems include sales trend forecasting, operating plan development, budget forecasting , profit planning , and manpower planning .

The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers. It is basically a middle level where planning of menus is done and whenever an order is voided, the reasons for the void are keyed in which later helps in management decisions, especially if the voids are related to food or service. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction.

The decisions to be made in the area of operational control pertain to implementation of specific tasks through appropriate technology. This is basically a lower level where the waiter takes the order and enters it online via one of the six terminals located in the restaurant dining room and the order is routed to a printer in the appropriate preparation area. The item’s ordered list and the respective prices are automatically generated. The cooks send ‘out of stock’ message when the kitchen runs out of a food item, which is basically displayed on the dining room terminals when waiter tries to order that item. This basically gives the waiters faster feedback, enabling them to give better service to the customers. Transaction processing systems function at the operational level of the organization. Examples of transaction processing systems include order tracking, order processing, machine control, plant scheduling, compensation, and securities trading.

The information required to make such decision must be such that it highlights the trouble spots and shows the interconnections with the other functions. It must summarize all information relating to the span of control of the manager. The information required to make these decisions can be strategic, tactical or operational information.

Advantages of an online computer system:

• Eliminates carbon copies
• Waiters’ handwriting issues
• Out-of-stock message
• Faster feedback, helps waiters to service the customers

Advantages to management:

• Sales figures and percentages item-wise
• Helps in planning the menu
• Cost accounting details

2. If the management provides sufficient incentive for efficiency and results to their customers, it would make the system a more complete MIS and so the MIS should support this culture by providing such information which will aid the promotion of efficiency in the management services and operational system. It is also necessary to study the keys to successful Executive Information System (EIS) development and operation. Decision support systems would also make the system a complete MIS as it constitutes a class of computer-based information systems including knowledge-based systems that support decision-making activities. DSSs serve the management level of the organization and help to take decisions, which may be rapidly changing and not easily specified in advance.

Improving personal efficiency, expediting problem solving (speed up the progress of problems solving in an organization), facilitating interpersonal communication, promoting learning and training, increasing organizational control, generating new evidence in support of a decision, creating a competitive advantage over competition, encouraging exploration and discovery on the part of the decision maker, revealing new approaches to thinking about the problem space and helping automate the managerial processes would make the system a complete MIS rather than just doing transaction processing.

3.   The management system should be an open system and MIS should be so designed that it highlights the critical business, operational, technological and environmental changes to the concerned level in the management, so that the action can be taken to correct the situation. To make the system a success, knowledge will have to be formalized so that machines worldwide have a shared and common understanding of the information provided. The systems developed will have to be able to handle enormous amounts of information very fast.

An organization operates in an ever-increasing competitive, global environment. Operating in a global environment requires an organization to focus on the efficient execution of its processes, customer service, and speed to market. To accomplish these goals, the organization must exchange valuable information across different functions, levels, and business units. By making the system more formal, the organization can more efficiently exchange information among its functional areas, business units, suppliers, and customers.

As the transactions are taking place every day, the system stores all the data which can be used later on when the hotel is in need of some financial help from financial institutes or banks. As the inventory is always entered into the system, any frauds can be easily taken care of and if anything goes missing then it can be detected through the system.

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5 thoughts on “ Case Study on MIS: Information System in Restaurant ”

please give me solution of case study urgent.

Just read the post thoroughly, you’ll find the solution there.

Please I have a similar case study. Can you help me with the solutions

A small company has for some years being using a manual system for processing of billing, payment of creditors and payroll system. The company is considering purchasing a computer on which it will run these application and others that it will develop in the near future. You have been asked to prepare a report on the implication of this proposed course of action.

1. Identify and describe six major issues which would be considered in an investigation of the feasibility of the proposal. 2. Suggest the outline structure of the report.

In fact am much impressed with your trend and solution layout. Thanks

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DESIGN AND IMPLEMENTATION OF A COMPUTERIZED RESTAURANT MANAGEMENT INFORMATION SYSTEM

ABSTRACT This project work is primarily designed to give an insight to computer based restaurant management information system. It is as a result of problem associated with the existing system which involves the use of manual method in keeping information in the system. So among the numerous problems associated with the existing system are; staff are spending far too much time chasing mistakes instead of tending to customers, sales going tallies and other. Computerized management information system database information system used by restaurant personnel to collect data, process it and also store it for future use. Researcher used visual basic in designing the system and Microsoft office as the database system.

Related Papers

Asmaliyana Ghani

Divina Seming

Alexander Decker

Sjoerd Gehrels , Wouter van Poppel

The concept of revenue management is widely adopted in various industries including the hospitality industry. Yet, its application to the restaurant industry has been limited. Especially culinary restaurants appear to be a somewhat unexplored area of study, thus indicating a gap in the literature for restaurant revenue management. No previous research in the Netherlands has included culinary restaurants as a separate category in studies on restaurant revenue management. The research method is a case study approach leading to explanatory interviews, in addition to the experience of two of the authors hemselves with over a total of 25 years of experience in the culinary restaurant business in the Netherlands. Eleven key stakeholders representing the Dutch hospitality and restaurant industry were interviewed. The interviews were then analysed and conclusions drawn. Dutch culinary restaurants do not consciously practice revenue management and thus do not have a strategy for it. This means that if culinary restaurants in the Netherlands could achieve the 2–5% revenue improvement that is typically associated with the application of revenue management, overall revenues could be increased by eight million Euros annually, almost all directly added to the bottom-line of these businesses.

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A RECIPE FOR SUCCESS: DIGITAL TRANSFORMATION OF THE RESTAURANT SUPPLY CHAIN

How a global restaurant company achieved best-in-class forecast accuracy, reduced inventory by almost 50%, and eliminated bullwhip effect across their supply network.

“This solution has allowed us to achieve best in class forecast accuracy levels, from the low 60s to the high 80s. We have essentially eliminated the bullwhip effect, and we have improved the efficiency of our inbound supply chain, reducing many, many of our suppliers’ costs… Along with this fresh product, we have been able to reduce inventory by nearly 50% and certainly, we have been optimizing costs all along the way.” – Bloomin’ Brands

The restaurant supply chain has been heavily stressed, both before and after COVID-19.

Even before the outbreak of COVID-19, the Fine and Casual Dining industry was under tremendous pressures due to increasing competition, rapidly shifting customer preferences, as well as customer expectations of world class service featuring only the freshest ingredients. These, and other restaurant supply chain challenges , combined with the recent COVID-19 pandemic, has pushed many restaurants and chains to the brink.

Increasing Complexity and Vulnerability of the Restaurant Supply Chain

Meanwhile, escalating food safety and sustainability concerns require full traceability of lot distribution and of ingredients to the source of supply. Simultaneously, businesses have grown in complexity to depend on local distributors supplemented by international distributors and logistics providers.

This has led to restaurant chains losing control of their supply chains, along with an ever-increasing number of stakeholders that must be coordinated to deliver meals to the consumer on time.

Gaining Visibility and Control Over the End-to-End Food and Restaurant Supply Chain

How does One Network’s Real Time Value Network address the challenges in the food and restaurant supply chains ?

One Network provides a global planning, optimization and execution backbone that the entire distributor and supplier community can leverage to be highly responsive to consumer dining habits. This cloud network allows enterprises to realize rapid results, and to leapfrog the results achieved by traditional ERP implementations.

Initiatives based on old technology platforms like ERP can only bring incremental improvements in performance. Network platforms have already delivered game-changing results in several industries.

Take Uber as a proven disruptor in the taxi industry. Uber is a network platform that takes demand from consumers world-wide for their personal transportation needs and matches it in real time to a local capacity of drivers. The service is offered at a fraction of the cost of a traditional taxi cab service and at a much higher service level. The car is provided on demand with a very short lead-time (minutes) to pick up the customer. This higher service level at a much lower cost model revolutionized the taxi industry.

Applying the same principles to the restaurant logistics solution, the underlying technology approach is to provide a real-time match of consumer demand to supply, with an execution system to provide the supply of the product or service to the consumer at a much higher service level and at a much lower cost. The network platform already exists that can onboard all trading and fulfillment partners and can coordinate all of their planning and execution activities around consumer demand in real time.

The Fine and Casual Dining Industry is headed for revolutionary change, particularly the restaurant supply chain. The question is who is going to lead this industry?

You need to ask yourself the question, “Do I want to be the next Uber, or the last standing cab company?”

Case Study: How a Leading Global Fine and Casual Dining Restaurant Company Achieved Results

One leading fine and casual dining company opted to move beyond legacy ERP technology augmented by spread sheets to a multiparty cloud network service. Among other capabilities, this single network is replacing as many as nine different ordering systems.

Similar to the Uber model, all parties are represented on this consumer driven demand-supply match solution. This includes corporate and franchise restaurants, store delivery providers, distributors, raw material suppliers, logistics partners, and commodities brokers. All parties work on a common consumer demand forecast aligning all available supply to demand in real time while optimizing operational costs.

Consumer-Driven Restaurant Supply Chain

This restaurant company has revolutionized the supply chain approach by providing a consumer driven pull signal to all parties in the value chain in real time. This is made possible by monitoring consumer demand throughout the day, forecasting projected demand profiles for menu items, and translating those into required raw materials over the multi-tier delivery network from consumer to raw material manufacturers.

They have now achieved over 40% improvement in predicting item-level consumer demand and converting that to required ingredients and operational support.

The Opportunity for Restaurants to Transform Their Supply Chains

Fine and Casual Dining companies can achieve similar results in their forecast accuracy. By on-boarding to a network platform, restaurants, distributors, suppliers, logistics providers and carriers can shape and sense consumer demand and respond together in real time. The significant opportunities for companies in this sector include:

• Demand Shaping such as Limited Time Offers (LTO) and New Menu Items with over 90% forecast accuracy.
• A real-time network eliminates information lead times reducing overall supply lead times which results in inventory reductions across the network, increased turns, and improved freshness (adding 4 days to ingredients available shelf life).
• 50% reduction in inventory from the industry norm of 8-12 days of inventory to only 4-6 days of inventory.
• 10% savings on cost of goods sold by treating distributors as flow through, reducing their inventory, improving their forecast, reducing raw material inventory at stores, and improving logistics operations.
• Restaurant’s order management efforts are reduced by 90%.
• The responsive supply chain network can support omnichannel including: franchises, home deliveries, and online sales. This opens up opportunities for differentiated business models and new revenues that increase customer engagement through mobile and omnichannel offerings.
• Transportation costs are reduced with shared distribution models driven by accurate orders and order forecasts, and by intelligently building efficient shipment loads driven by consumer demand.
• With network technology, any new member (store, supplier, carrier) can instantly start interacting with the entire network. This radically reduces new store time to profitability, new supplier on-boarding, limited time offer mobilization, and new brand introduction times. Process automation via the network enables consistent and optimized operations, driving time to profitability down to 3 months or less.

Optimizing the Restaurant Supply Chain with Intelligent Agents to Enable the Autonomous Supply Chain

In a traditional approach, enterprise silos prevent any one party from having a full picture of demand, supply and execution status to serve the customer. There are too many systems, with redundant, conflicting and incomplete information that must be reconciled and integrated before doing anything useful. It is too slow to go from gathering the data inputs required for planning to executing decisions. Information systems cannot support the speed of business anymore. Furthermore, rigid, “one size fits none” Commercial Off-The-Shelf (COTS) systems require customizations that kill agility and inflate the total cost of ownership (TCO).

Real Time Digital Networks Must Replace Linear Restaurant Supply Chains

Companies must move away from traditional approaches and embrace a new paradigm to keep up with today’s fast-paced business. This new paradigm is consumer-driven, leverages a flexible and modular multiparty network platform and enables dramatic performance improvements that generate unprecedented results.

The key to this approach is the multiparty multi-tier, real-time network service connecting restaurants, distributors, suppliers, logistics providers and carriers via the cloud . Each party only needs to onboard once, and then can interact with all others instantly.

Automating the Restaurant Supply Chain with Artificial Intelligence

NEO, One Network’s intelligent sense-and-learn agent technology , gleans patterns from point-of-sale (POS) data and continuously adjusts forecasts for menu items at the store level. Menu-item forecasts are translated to raw-material-item forecasts. These in-turn drive order forecasts which are further analyzed by NEO, taking into account order units-of-measure, operational lead times and shipping and receiving calendars of every party involved along the way.

Autonomous Order Management

The order forecast for each distribution center is used by supplier systems to plan their inventory and the actual orders are automatically optimized at all tiers for service levels, inventory levels and operational costs. The network automatically generates all orders, tracks them, converts them to shipments and re-computes all inventory levels, calculates all capacities needed (such as labor or dock door availability at distribution centers) and schedules those capacities. An important strength of the solution is that suppliers are not just spokes to the restaurant’s system. They are also hubs in their own respect, enabling them to exploit the power of NEO and the One Network Platform to manage their business for other customers and provide operations and optimization across all their customers, suppliers and logistics providers on the same platform.

Since the entire system is consumer-driven, restaurant orders are automatically created and support all omnichannel needs. Restaurant managers need only be involved when they have local knowledge of a planned increase or reduction in traffic.

All orders are created and managed automatically by the system. Forecasts can be enhanced by planners, but the system has proven that it can plan and re-plan itself with much higher accuracy and agility than a traditional decision-support approach. The system creates optimized shipments and auto tenders based on pre-configured business rules and monitors execution with milestones and tracking events in real time.

This highly automated system moves away from significant user involvement to an exception management process that alerts relevant parties and then assists those in taking corrective actions. This reduces required head count and allows the users who are involved to spend their time resolving only issues NEO cannot solve on his own based on the levers available and constraints.

With the application of the machine learning technology, intelligent agents continuously learn based on changes in business variability or seasonality. More importantly, NEO continuously projects not only what the future holds but translates that into specific financial projections for revenue and margins.

Old ERP systems are unable to support collaborative decision-making in multiparty networks such as in the restaurant business. However, these legacy systems can be seamlessly embraced for accounting purposes, enabling you to take advantage of your historical investments.

A Rapid, Self-funding, Minimal Risk, Agile Implementation

Historically system implementations required a big bang approach to deploy enterprise-only capabilities. This approach proved to be enormously expensive, takes too long and is extremely risky. In addition, it is labor-intensive and costly to support. More importantly, the inability to adapt these systems as business needs change, can hurt the agility of the restaurant businesses.

Multiparty networks are typically deployed within months rather than years, and are deployed with all of your trading partners. This not only drives significant value but also greatly reduces the complexity of the system due to the fact that most activities in the restaurant supply chain are actually managed by your trading partners.

The system is modular, unlike monolithic ERP systems. It allows step-by-step short projects (similar to sprints in an Agile Development Methodology) that are rapid, self-funding, and low risk. The support approach is a never legacy approach allowing for automated upgrades, providing new capabilities on a frequent basis.

“Real time visibility, coupled with demand- based forecasting, will help create a more efficient and agile supply chain.” – Bloomin’ Brands Inc.

How You Can Get Started

This paper demonstrates how a new paradigm using innovative technologies overcomes fundamental flaws in current approaches and offers the opportunity to unlock enormous value in the Fine and Casual Dining industry. Visionary restaurant companies are already transforming to consumer-driven digital networks and achieving breakthrough results. The choice is clear. Disrupt or be disrupted.

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Case Studies

Case Study: Increasing Online Bookings & Streamlining Restaurant Operations

Wapalapam is an Indian Ocean Eatery, located on the foothills of the beautiful Le Morne Brabant mountain in Mauritius. Known for its perfect setting and for turning a culinary experience into a memorable occasion, the unique and authentic restaurant was started by the famous Snowboarding World Cup champion, Rok Flander, and his wife, Gabriella in 2016.

Introduction

The power couple transformed an old Bank into a shabby chic-looking restaurant, offering guests the special opportunity to eat local Indian Ocean food off the more than 100 years old wooden tables and chairs - an ambiance that fits perfectly with the beautiful environment of the UNESCO, protected by the Le Morne Brabant mountain area. 

And to top it all off, the Wapalapam duo joined forces with founder and author, “Aquacasia, Culinary Jewels of the Indian Ocean,” Chef Willibald Reinbacher to create a new culinary concept, which offers an unforgettable mix of authentic and artisanal offerings, “capturing the heart and soul of each island’s love of food.” Each year, the magnificent restaurant grows from stretch to stretch, giving guests from around the world a unique, and unforgettable experience. Subsequently leading them to branch out with a second location in Port Louis in 2021. So, how do they do it? 

In February 2021, owners Rok and Gabriella started using Eat App to help them manage their online bookings and operations in general. Today, the restaurant has seen an increase in online bookings, which helped them get back into the swing of things, after the visible decrease in restaurant reservations during the dreadful Covid-19 pandemic. The restaurant received 241% more reservations during December and January 2022, compared to February 2020 which was the best month pre-pandemic. 

We spoke to Restaurant Manager Gloria Reinbacher to tell us a bit more about how they manage to increase their bookings and seat guests faster on a daily basis. “We started using Eat App to have better follow up and record on reservations,” she says. It was also important for Gloria and the staff at Wapalapam to give guests the opportunity to make reservations online, plan and have a clear record of reservations. 

When it comes to Eat App, Gloria mostly uses our software to assist her with ongoing reservations and seating of guests. “Planning the setup [of the restaurant], ensuring staff are on duty, monitoring all bookings for our different outlets, ensuring smooth operation in general” are a few other important tasks Gloria is responsible for at Wapalapam restaurant.  

1. Increasing online bookings 

Firstly, let’s review how Wapalapam restaurant managed to increase its online reservations and increase their turnover rate. Eat App, conveniently helps you set up your booking widget on your online platforms such as your website, Google, Facebook, and Instagram increasing your online bookings by 57%; and best of all, the covers generated through these widgets are completely free of charge. Restaurants like Wapalapam are also completely in charge of their own reservation channels, which means they have full control over accepting or declining incoming bookings they receive online. “Eat App is practical. I believe it [the software] did increase online bookings,” Gloria says. 

2. Building a guest database

The guest that made a reservation at Wapalapam through the booking widget is then automatically added to the guestbook along with their reservation history and contact details in case they visit again. For Gloria and the staff of Wapalapam, this has been a game-changer. They now spend less time of the day writing out details of every single guest making reservations. “We save paper, that’s for sure. We also spend less time with staff on the phone,” Gloria says. 

After you’ve automatically collected your guest database, restaurants are able to use the valuable information and send guest marketing emails and SMSs. “Creating data helps contact clients in advance for changes and future booking/marketing,” she says. “This information is important for feedback, no-shows, etc,” Gloria adds.

When it comes to improving the guest experience, Gloria mentions this is essential for restaurants. “Loyal customers are important for all businesses as they are going to give genuine feedback and recommendations,” Gloria says. The manager of Wapalapam also went on to say the feature she would recommend using to help increase guest loyalty is the “contact record and reservation system” built into Eat App. 

With this important guest information, restaurants can easily: 

• Offer guests special discounts during non-peak hours.
• Access powerful guest and reservation reports to better understand your business.
• Improve guest loyalty and engagement with automated guest segmentation and email marketing tools.
• Restaurants are also able to collect continuous customer feedback with automated online surveys.

3. Streamline reservations & set up your shifts

Once Wapalapam has received online bookings they use Eat App’s reservation software and table management system to confirm or cancel the reservation. They also have the option to add any notes about the reservation in the system for staff members to view when these guests arrive.

A few examples of how the Notes feature of Eat App can be used:

• To inform your staff of the daily specials
• To let your staff know that a big group is coming for a birthday party and to have the tables ready
• To communicate if a certain dish is out of stock

This feature not only helps the restaurant to create a better guest experience but also helps give staff full control over managing the reservations.

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Elana Kroon used to work in restaurants before becoming a journalist and expert restaurant industry content creator at Eat App.

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A Big City as an Independent Central Place System, a Case Study of Moscow

• Urban Geography
• Published: 30 June 2018
• Volume 8 , pages 151–157, ( 2018 )

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The paper studies a big city as an independent central place system. For this purpose, the author has developed and tested a methodology for quantitative assessment of central functions based on an integrated set of the most important socioeconomic indicators. This methodology helped to prove the possibility of not only measuring the value of central functions in different parts of a big city, but also of determining the affiliation of all the system’s elements with different hierarchical levels or a service area. The study was based on the model of Moscow’s central place system. The study evaluated how the factor of the Russian capital’s considerable territorial expansion has influenced the dynamics of its central place system from 2009 to 2015. We have found that there is a strong interrelation between Moscow’s radial–circular structure and a relatively uniform reduction in the value of central functions with increasing distance from the city center, which is disturbed by the largest highways, which concentrate a significantly higher value of the key factor compared with neighboring elements.

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Original Russian Text © P.P. Em, 2017, published in Regional’nye Issledovaniya, 2017, No. 3 (57), pp. 34–42.

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Em, P.P. A Big City as an Independent Central Place System, a Case Study of Moscow. Reg. Res. Russ. 8 , 151–157 (2018). https://doi.org/10.1134/S2079970518020041

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Received : 17 November 2017

Published : 30 June 2018

Issue Date : April 2018

DOI : https://doi.org/10.1134/S2079970518020041

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