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A STORY OF TWO RESTURANTS
ABC Restaurant:

ABC restaurant was founded about 20 years ago by Mr. Omer, who has run it from the start. The
restaurant is very profitable because of its excellent food quality but lately has been having
problems with consistency because of numerous suppliers. The restaurant operations are divided
into front±end (Servers) and Back±end (Kitchen).
The kitchen has notes to boots employee morale; employees are cross±trained in all areas and
the kitchen staff continually seeks improvements in cooking, Servers, however, have minimal
wages and few perks and turnover is a bit of a problem. Omer¶s primary criterion for selecting
servers is their ability to show up on time. There is little communication between the front±end
people and Back±end kitchen operations people, other then expect fulfilling orders placed by the
customers. Omer makes sure that any complaints are referred to him immediately by the servers.
The restaurant has no automation, as Omer believes that it would get in the way of customers
special requests. This is the way we have done it for the past 15 years and we will continue to do
it, and we do not need technology,
Omer used to hold staff meetings regularly but recently they have dropped from once each week
these meetings to one every five or six months. Most of the time spent focusing on negative
behavior of the front±end (Servers), and Omer has sent often said, ³You can¶t find good people
anymore.´

XYZ Restaurant:
XYZ is a family owned restaurant in the same state (i.e., in which ABC restaurant). Ali uses only
the freshest meats and ingredients from the best suppliers and gives extra large portions of food
to customers, who feel they are getting their money¶s worth. Ali pays his cooks high wages to
attract quality employees. Servers get 70 percent of tips and the kitchen staff 30 percent to foster
teamwork. Many new people are hires only from the references of the current employees. Ali
interviews all potential employees and asks them many pointed questions relating to courtesy,
responsibility and creativity while they will be serving their customers.
The restaurant sponsors, many games, like football and cricket. Ali ranges picnics and holiday
parties for its employees. At the birthday of the customers, who have visited his restaurant five
th
times in a year, Ali will make sure that they receive a free dinner after their 5 visit. The children
are welcomed with balloons, candies, and biscuits and there is big screen T.V. to show the
games for sports fans. . He visits many other restaurants to study their operations and learn new
techniques. As a result of these visits, Ali installed computers to schedule reservations of the
customers¶ orders and these orders there after enter into the kitchen; and he is planning to have a
call center where does can call in at the XYZ and orders can sent customer¶s home at free of
cost. In other worlds, the delivery will be free and the customer will only pay the cost of the food.

QUESTIONS:
1. Compare these two restaurants from the perspective of TQM. How do they follow or not
follow the fundamental principles of TQM?
2. What advice would you recommend to the owners?