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Home Case Study Capital Grille Case Analysis: A Comprehensive Strategic Analysis

Capital Grille Case Analysis: A Comprehensive Strategic Analysis

Company Information

The Capital Grille

The Capital Grille was founded in 1990 and serve in more than 52 locations. They value their customers and strive for providing them comfortable elegance of their services. They are renowned for their dry aged steaks, world class wine, and fresh and delicious sea food. The Capital Grille serves to delight their customers which are why they use finest and freshest quality of their products. Restaurant has been designed to meet its own refined sophistications with unique display design for attracting customers. Most noteworthy feature of The Capital Grille s its gallery which has unique architectural finishing touch. 

Steakhouse Chain Customer Preference Survey

The Capital Grille has won several awards and recognitions because of their high quality food and services such as best restaurant in Connecticut 2016, Miami top 50 restaurants and 2015 top 10 steakhouses. 

Operational Strategy

The Capital Grille Operational Strategy          

Through the use of effective operational strategies the capital Grille competes on cost, quality and speed from their competitors. The Capital Grille is renowned restaurant of Darden’s upscale steakhouse chain. In 2010 during the fiscal year, this chain had 40 restaurants (an expansion of 3 over the earlier year) with yearly offers of $242 million. Annual sales of per restaurant were $6.2 million however during fiscal year, their sales gets decreased to 7.8%. Thus, for dealing with such situation Capital Grille has adopted effective operational strategies which impacted on their quality enhancement and cost reduction. Operational strategy of restaurant gives unmatched consistency in operations in backing of high item quality. This must be proficient with sufficient pace, minimal effort, and procedure development to adopt changes in customer tastes.

Cost, speed, quality and flexibility are essential elements of operational strategy of The Capital Grille. They serve with efficient and quick services that saves there time and cost. Furthermore, taste and services of restaurant meet the standards of customers, which enhance their quality, and value of the products and services.  Dry steaks, fresh seafood, and world-class wine help their restaurant to maintain their competitive advantage in others. Besides, during the visit, it was identified that the cost of wine and steaks at Capital Grille is most high. However, to utilize its profit potential restaurant has to manage cost related activities and have to ensure they do not astray. Capital Grille is also paying attention towards health and wellbeing of their labor as In case their labor gets injured even with a knife cut it cost $20million to the restaurant. 

Operational Strategy

The Capital Grille Operational Strategy          

Through the use of effective operational strategies the capital Grille competes on cost, quality and speed from their competitors. The Capital Grille is renowned restaurant of Darden’s upscale steakhouse chain. In 2010 during the fiscal year, this chain had 40 restaurants (an expansion of 3 over the earlier year) with yearly offers of $242 million. Annual sales of per restaurant were $6.2 million however during fiscal year, their sales gets decreased to 7.8%. Thus, for dealing with such situation Capital Grille has adopted effective operational strategies which impacted on their quality enhancement and cost reduction. Operational strategy of restaurant gives unmatched consistency in operations in backing of high item quality. This must be proficient with sufficient pace, minimal effort, and procedure development to adopt changes in customer tastes.Cost, speed, quality and flexibility are essential elements of operational strategy of The Capital Grille. They serve with efficient and quick services that saves there time and cost. Furthermore, taste and services of restaurant meet the standards of customers, which enhance their quality, and value of the products and services.  Dry steaks, fresh seafood, and world-class wine help their restaurant to maintain their competitive advantage in others. Besides, during the visit, it was identified that the cost of wine and steaks at Capital Grille is most high. However, to utilize its profit potential restaurant has to manage cost related activities and have to ensure they do not astray. Capital Grille is also paying attention towards health and wellbeing of their labor as In case their labor gets injured even with a knife cut it cost $20million to the restaurant. 

Operational Strategy of The Capital Grille

Operational Map Capital Grille

Value chain

The Capital Grille

Primary activities

Inbound logistics

The capital Grille purchases material in bulk from the suppliers or farmers, which they store in their warehouse. Every product undergoes extensive quality assurance and control procedures that optimum quality is delivered to guests. While receiving material, labor checks and monitor the weight of goods to ensure that they paying for right amount of goods. Furthermore, while receiving the products, when they get 100 pounds of weight of products, they knew that 60 % of them are going to be used for their products however 40% will not be used as customer serving products. Hence they incorporate in CSR program to give back to the society.

 Operations

The Capital Grille has hired skilled cooks who are efficient and expert in their field. The operation control processes have set standards for recipes in making their food that satisfies their customers. Here they create value by swift services, and consistent quality.

Process

The capital Grille has huge number of its branches, which are round about 51. They use mass production process and effective chain system for distribution of food and supplies to them. Before purchasing raw material or food, the capital Grille sends their food inspector to check the quality of their food. Thus, restaurant takes crucial steps for meeting their customer demand and for ensuring their customer’s health.  

Outbound Logistics

The Capital Grille strives to provide the best quality products to their customers. They provide greater value to their customers through serving them healthy and fresh food. 

Marketing and sales

The capital Grille use different tactics and sources for marketing and advertising of their restaurant such as Social media marketing, websites, banners and blogs etc. they serve in more than 51 locations which enhance their responsibility of marketing and advertisement. Furthermore, famous steaks, wine and sea food of the capital Grille has maintained their reputation from extensive advertising or marketing campaigns.

Services

The capital Grille provides complete lunch, dinner, dessert and bar menu services to their customers. Besides, they also gave their customers the facility for reservation and buying gift cards. 

Support Activities

The capital Grille serves their community. They share extra food with needy people of their community rather than wasting it.  

Firm infrastructure

While each Capital Grille restaurant is keenly intended to make a climate of refined atmosphere, some of our areas show one of kind of interest of which we are especially renowned. Infrastructure of restaurant is very artistic which grab the attention of their customers.  

Human Resource Management

Capital Grille values their labor as they believe that their labor can minimize their cost and enhance their quality and speed of services. Management of Capital Grille strives to keep their employees satisfied which are why they have created strong relationship with their employees. Effective communication channel have been created within the company and their employees, thus, it saves them from different issues and conflicts. 

Technology Development

Capital Grille has focused towards modernizing their restaurant chains.  Technology development has enhanced their relation with customers as they get updated regarding customer feedbacks and in return they address their issues.

Core activities 

  • Meat Procurement 
  • Meat Cutting 
  • Aging 
  • Customer service 
  • Consistency in food quality 
  • Compassion towards employees/ Clients

Marketing Mix Capital Grill

Product Capital Grille

Major products of The Capital Grille, which I have found during my visit, were seafood, world-class wine, and steaks. 

Process: Capital Grille

There 3 min in serving the drink after order, then 10 min for appetizer, 20 min for main course and then again 10 min for desert. The timings are critical to the process hence integrated communication process informs the chief as soon as the order is placed and effective. The integrated system allows better management of time and quality hence more satisfied customers. 

Process Map Capital Grille

Layout

Capital Grille Layout

The Capital Grille has a process based layout system where every thing is arranged according to its functions in order to increase efficiency. The meat arrives and should be prepared in a way with minimum waste. The initial assessment of quality is according to the weight of the delivery if it matches the order. The meat is then inspected and forwarded to the butcher where they cut and slice accordingly. 

The focus of the process is to minimize the waste using the quality concepts the waste is minimized. As mentioned earlier 60% of the meat is usable in making the products while 40% is waste otherwise, but organization’s philosophy is built on sustainable foundations and is cognizant of its social responsibility hence they channelize the waste to places where it is required and has some use. The waste is minimized at every step the chef are trained to maintain their active focus on the food processing so that they do not waste any of the product. The decision-making criterion is solely based on the achieving customer satisfaction while remaining profitable.

Capital Grille

Darden is the parent company of Capital Grille. Supply chain of Darden restaurants is shown below

The Capital Grille supply chain

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