Developing A Purchasing Process ✓ Solved

Developing A Purchasing Process

For a hospitality business to be successful, the management team must have a strong purchasing process which includes both selection and procurement. This process must be well-established in order to control costs and deliver the best possible product/service for its target customers. For this assignment, you will choose one major restaurant chain (global chain or regional chain) that uses central commissary and develop a new purchasing process for a single restaurant unit. You will use this restaurant chain as a framework (i.e., the menu, average restaurant size, and management/employee organizational structure) for developing a new purchasing process.

Note: You must create your own purchasing process for a single restaurant unit based on the concepts you have learned in the course. Do NOT just report on the restaurant chain’s current purchasing process. Write a five to six (5-6) page paper in which you:

  1. Choose one (1) major restaurant chain and provide a brief overview including:
    • a history of the chain
    • the type of cuisine(s) and theme
    • the number of restaurants
    • the average restaurant size (seating capacity) and layout (both front and back of the house layouts)
    • the standardized menu (both food and beverage)
  2. Describe the restaurant chain’s central commissary including the products it supplies and it doesn’t supply, and analyze how the central commissary benefits a single restaurant unit.
  3. Select at least three (3) purchasing technologies from the following list: inventory-tracking, storage management, product ordering, product identification, and bar-code reader. Explain how those you have chosen will be used to optimize the purchasing process for this restaurant chain.
  4. Speculate on at least two (2) foreseeable forces affecting distribution systems that could impact this restaurant chain in the near future and suggest how to mitigate them.
  5. Explain how the new purchasing process for this restaurant unit follows and abides by the five (5) major purchasing objectives. Provide a rationale for each objective.
  6. Use at least three (3) quality references.

Note: Wikipedia and other Websites do not quality as academic resources. Your assignment must follow these formatting requirements: • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. The cover page and the reference page are not included in the required assignment page length.

Paper For Above Instructions

In the dynamic world of the hospitality industry, a well-defined purchasing process is pivotal for maintaining operational efficiency and enhancing customer satisfaction. This paper will focus on a significant representative of this sector, Chipotle Mexican Grill, to develop a new purchasing process for a single restaurant unit while leveraging the principles learned throughout the course.

Overview of Chipotle Mexican Grill

Founded in 1993 by Steve Ells, Chipotle Mexican Grill has grown into a prominent player in the fast-casual dining sector. Initially starting as a single eatery in Denver, Colorado, it quickly gained popularity for its mission of serving high-quality Mexican cuisine made from fresh, sustainably sourced ingredients. As of 2023, Chipotle operates more than 2,700 locations across the United States and internationally. The restaurant specializes in a limited menu offering customizable burritos, bowls, tacos, and salads, drawing customers to its fast-casual dining atmosphere.

The typical Chipotle restaurant spans approximately 2,500 square feet and accommodates around 85 to 150 guests, with an open kitchen layout that promotes transparency and customer engagement. The space is designed to allow guests to observe the preparation of their meals, reflecting the chain's commitment to freshness and quality.

Chipotle's standardized menu features a variety of food and beverage options, including burrito bowls, tacos, chips, guacamole, and beverages such as soda and bottled water. This focus on fewer, high-quality offerings has contributed to the brand's strong market position.

Central Commissary Overview

Chipotle operates a centralized commissary system that plays a crucial role in its supply chain. The central commissary supplies various products such as precooked meats, beans, rice, salsas, and guacamole, ensuring consistent quality across locations. However, it typically does not supply fresh produce or certain specialty items that are procured directly by individual restaurant units.

The advantages of this central commissary model include streamlined operations, reduced costs through bulk purchasing, and enhanced quality control. Each restaurant benefits from efficient inventory management and a strong supply chain, allowing managers to focus on customer service rather than supply challenges.

Optimizing the Purchasing Process with Technology

In developing a new purchasing process, incorporating technology is essential. The following three technologies will be integrated into the Chipotle restaurant's purchasing system:

  • Inventory Tracking: Utilization of advanced software for real-time inventory tracking will enable managers to monitor stock levels and reduce waste. By implementing automated alerts for low stock items, the restaurant can ensure it always has the necessary ingredients on hand.
  • Product Ordering: An integrated product ordering system allows for efficient reordering of supplies as they deplete. This technology facilitates quicker and more accurate orders, ensuring consistency in delivery and purchasing efficiency.
  • Barcode Reader: Implementing barcode scanning at different points in the procurement process will enhance accuracy in stock management and product identification. This will minimize ordering errors and ensure that the right items are delivered on time.

Forces Affecting Distribution Systems

Looking forward, several foreseeable forces may influence Chipotle's distribution systems. Two prominent factors are:

  • Supply Chain Disruptions: Global events, such as natural disasters or pandemics, can significantly impact the supply chain. To mitigate these risks, Chipotle should strive to diversify its supplier base and establish contingency plans.
  • Regulatory Changes: Changes in food safety regulations may necessitate adjustments to purchasing processes. Staying informed and proactive in compliance will help mitigate disruptions and maintain operational integrity.

Purchasing Process and Objectives

The newly developed purchasing process for this Chipotle restaurant unit will align with the five major purchasing objectives:

  1. Quality: Ensuring that all ingredients meet Chipotle's high standards for freshness and sustainability not only enhances customer satisfaction but also reinforces the brand's identity.
  2. Cost: By leveraging a centralized purchasing approach, the restaurant can negotiate better prices and minimize costs through bulk procurement.
  3. Delivery: Timely deliveries will be ensured by establishing strong relationships with suppliers and utilizing technology to track orders effectively.
  4. Service: A focus on responsive communication with suppliers and a dedication to customer service within the restaurant will support overall operational efficiency.
  5. Ethics: Emphasizing ethical sourcing of materials will align with Chipotle's commitment to sustainability, which is fundamental to its mission and values.

In conclusion, by implementing a robust purchasing process that incorporates technology and aligns with strategic objectives, Chipotle can enhance its operational efficiency and further solidify its market position. The focus on quality, cost, delivery, services, and ethics will drive operational success and customer satisfaction.

References

  • Chipotle Mexican Grill. (2023). Company Overview. Retrieved from [Chipotle](https://www.chipotle.com)
  • Heizer, J. & Render, B. (2017). Operations Management. Pearson.
  • Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Prentice Hall.
  • Chopra, S. & Meindl, P. (2016). Supply Chain Management. Pearson.
  • Cook, T. A., & Murdock, D. (2023). Purchasing and Supply Chain Management. Cengage Learning.
  • Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management. McGraw-Hill Education.
  • Fuller, T. J. (2021). Developing a Purchasing Process for Food Service Operations. Journal of Hospitality & Tourism Research.
  • Fisher, M. L. (1997). What is the Right Supply Chain for Your Product? Harvard Business Review.
  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2019). Managerial Accounting. McGraw-Hill Education.
  • McGowan, P. (2020). Achieving Ethical Sourcing in the Restaurant Industry. The Ethical Consumer Journal.

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