The History Of Hard Rock Cafe Travel and leisure Essay

The history of Hard Rock and roll Cafe headquartered in Orlando, Florida began from July 14, 1971 by the looks of a humble cafe in London, Great britain. Hard Rock Cafe's founders are Isaac Tigrett and Peter Morton, two enterprising and music-loving People in america. And, 1982 is the time for HR's growth when 2 owners decided to develop their own HRC in many different places. After some transitions and acquisitions, HR International now is one of the Seminole Tribe of Florida with over 171 venues in more than 52 countries about the world, including 134 cafes and 15 Hotels/Casinos, live music venues, and an enormous gross annual Rockfest concert.

Differing from other businesses, HRC's knowing of the brand appeared at start-up and throughout the development process. Hard Rock and roll Cafe model is typical of the technique of development products by issue - a whole new marketing tool. Hard Rock and roll Cafe is a mixture of experience, style, entertainment factor, posting awareness and finally memories storage. This is the main factor leading HRC's present success.

With rock and roll 'n move sensibility - A HR birthright- demonstrated by USD million appreciated choices of memorabilia, service viewpoint "Love All - Serve All" and operations under the banner 'Save THE EARTH, Hard Rock and roll Cafe - the main of HR International entertainment and leisure company- will definitely continue steadily to successfully develop the Hard Rock and roll Brand. Kuala Lumpur (Malaysia) and Ho Chi Minh City (Vietnam) are believed incredible and far-flung locales of HR system. In 2011, Hanoi (Vietnam) is one of eight locations of HRC getting into being.


From a moderate cafe in London, HRC now occupies over 171 locations in 52 countries. This success has been attained by changing from a "themed" restaurant into one participating in what is now called the "Experience Economy".

Working operating industry, HRC's products are services and they are intangible.

OM always plays an important part operating area. HRC understands this and uses OM effectively to get access to their focus on - serve friends with unique activities at each as well as every cafe. This is found through its mission of "To disperse the soul of Rock and roll 'n' Move by delivering a fantastic entertainment and eating experience. We could committed to as an important, contributing person in our community and offering the Hard Rock family a fun, healthy, and nurturing work environment while ensuring our long-term success".

In service industry, strategy is basically OM strategy. HRC uses "Multi-Domestic" strategy when working with its (US) domestic model internationally, and using franchising procedures when it makes sense to take action. (Fifty percent company, one half franchise). This might includes using the use of joint ventures or subsidiaries. Franchises are used when it's determined "that local possession will bring a distinctive ability, or local conditions suggest there will be an unusual or difficult execution". To be able to access the competitive advantage (Strategic Differentiation, Low Cost, and Response). Although HRC has no normal challengers, a great deal of its rivals are from experience that travellers can experience. HRC selectively applies 10 OM decisions, contributing to remarkable achievements. This results 92% name recognistion all around the globe, placing HR in the most notable 10 of all restaurants.

1. Product and Service Design

With the school of thought " Love all - serve all", HRC provide guests with experience, not dishes simply. Here, the chefs improve menu from basic North american - burger & hen wings- to add higher-end items (stuffed veal chops, lobster tails). They also analyse and test the meals as well as review the selections to ensure the meals is well qualified and delicious enough to serve their guests. Because HRC orients to differentiation for making competitive edge, the menus as well as food is usually changed. Also, HR is adding a fresh focus on live music & redesigning its restaurants to support the changing preferences.

2. Quality

Differing from product, service's quality is influenced by many subjective expectations. It is not easy to set up a general quality level. This requires a significant effort to obtain a success. Having a string of over 171 locations in 52 countries, HRC has nowadays retained many brands. HRC realises the value of total quality; therefore, each personnel or each meals is strongly centered. The staff must be well certified. They also make research on food, flavour or suppliers. Many studies about quality have been regularly done predicated on the reviews or comment sheet from guests. They aim at the most perfect quality by using the scorecard of a someone to seven scale. If the scores are not a seven, this implies a failure. They may be happy to receive the comments from friends, even the issues where they can improve the services. That's the reason of the slogan "We're going to reap the benefits of the efforts that we put into it, so in the long run, the love you take is add up to the love you make".

3. Process and capacity design

Because "Customer may be directly involved with process design and Capacity must match demand" (service with 10 OM decisions - Heizer & Render), HRC sets guests in the centre of operations and staffs always try their finest to satisfy guests. Scheduling the top staff of bartenders, cooks and waiters, waiteresses is done based off of tracking sales. The program can be modified for being suitable with job figure, seasonality and guests'convenience for the intended purpose of efficiency. Everyday, HRC will serve about 100, 000 dishes with appetizers, salad, sandwich, factors, burger, entries and desserts.

4. Location selection

In service industry, location must be near customers. That's the reason HRC chooses the best venue at the center of each city to find. Location is a key factor in service business. It's the prerequisite condition making or breaking business strategy. At HRC, location is considered one of the very most essential OM decisions done by Oliver Munday - HR's vice Leader for cafe development. Before starting a fresh HRC, Mr. Oliver Munday trips a world to get a country for HR's next cafe, select a city, and discover the ideal site and then negotiates the offer. From then on, he works together with architects and planners and keeps with the task through the opening and first year's sales. Usually, Mr. Oliver Munday talks about several factors with a worldwide view when contemplating a location. Some of them are: political risk, money risk, cultural norms, brand fit, social costs, business procedures. And, an intensive research checklist is applied. They give consideration and make a style analysis of Demographics, Visitor Market, Transportation, Restaurants and Nightclubs ( a selection in key target market areas), Political Risk, Real Estate Market and Hard Rock and roll Cafe Comparable Market Analysis. Depending on the final result, HRC will finalise the business model, joint-ventures, subsidiaries or franchise on the path to set up a unique base.

With 75% guests are tourists, most of HRC are situated in central areas having congregated nightlife. The location decision is at least a 10-15 calendar year commitment. Also, Break-Even Evaluation is utilized to help make a decision whether to construct the purchased land, or to remodel an existing facility. Currently, Munday is heavily looking at global expansion in Europe, Latin America, and Asia. As projected, there are 8 HRC that are coming into being in 2011, including Hanoi, Vietnam, assisting to raise the total income to practically 180.

5. Layout design

In service industry, structure is another important component, contributing to bettering product & development. After finding, depending on fact, HRC will determine the design design. Sometimes, they purchase the land to the place. Sometimes, they just renovate on the bottom of rent land. HRC takes a lot of time because of this work from exterior to interior. The put together must be attractive while beautification is at the aim of drawing the attention of guests. The pub, furniture, light system, audio and circulation are at the guests' comfort. On the other hand, the working train station as well as kitchen, food area makes personnel easy to use and serve friends at soonest. Moreover, retail shop together with memorabilia creates a deep impression by a unique way that can not be found somewhere else. All of them bring the guests a special atmosphere of residing in Rock'n'Roll world.

6. Recruiting and job design

Being aware of the role of human being resource which is critical in service, especially in experience market, HRC is usually careful of recruitment as well as training. Applicants to HRC have to meet the conditions of appearance, positiveness in attitude, high self-motivation and curiosity about serving and posting experience. Furthermore, they must be skilled at work and passionate about music as well. Being truly a staff here, everyone passes Rock 101 - a 2-day training course for basic service skills and with a rock'n'roll heart. Job-oriented interactive CDs covering kitchen, retail & front-of-the-house service is the content of HRC's training program. HRC tends to the strategy "building a culture enabling acceptance of large diversity and individuality", there is no discrimination at HRC. The promotion and employee policy are also firmly focused and equal to all staffs. With value system "to bring a fun, healthy, nuturing environment in to the HRC culture", the staff is the aspect conveying the rock'n'roll heart and soul, making atmosphere alive and bringing exceptional experience to the friends. That is the reason why HRC is thought to have competitive advantade through its recruiting.

Besides those decisions above, HRC also pay attention to supply-chain, Inventory, scheduling and maintenance management. To be able to have food dished up with freshness and high quality, HRC chooses the experienced suppliers and regularly work with them. At HRC, they establish a schedule relying on business sales, revenue, occurrences, seasonality, sales forecast and business trend analysis. . . to make sure they are simply always at service. The most important inventory management is made for memorabilia selections valueing over US$ 40 million with more than sixty thousand bits decorated by any means HRC. No matter what the large numbers of memorabilia, HRC effectively deal with from a distance. They know well the name of each memorabilia, just how many of these at each HRC and where to put. The maintenance of memorabilia is done at Orlando every 5-7 years; hence, their valuable and largest Rock'n'Roll collection is within good condition on a regular basis.

In addition to OM decisions applied, HRC global strategy can be successful because of good forecasting. Hard Rock doesn't limit its use of forecasting tools to sales. Depending on the application, Hard Rock and roll makes long-range, intermediate-term or short-term sales forecasts conducted every month, by cafe, and then aggregated for a head office view. The daily forecast is further broken into hourly sales. The point-of-sale system (POS) reaches the centre of the sales forecasting system. Computerized arranging software can be used and they compare the genuine sales to forecast to assess the variances, find out the reason behind strengthening. A 3-season weighted moving average is applied to cafe sales, multiple regression is situated in Hard Rock's menu planningEffective forecasting helps HRC be at good service, contributing to its successful Businesses Management.

In quick, selective program of 10 OM decisions with forecasting brings HRC with a competitive benefit, differentiating HRC from other cafes. This puts HRC securely in the service industry, especially in experience current economic climate which is so attractive but with a number of difficulties and troubles as well.


Continuing with the success in development, HRC first made an appearance in Vietnam in '09 2009 by franchise done by Viet Thai International. That is HRC located in Kumho Plaza, right at the heart of Saigon, the largest and congested city of Vietnam. After over one year of operation in Saigon, Vietnam HRC step-by-step gained some success with left over musical sensibility confirmed through Rock'n'Roll and valuable memorabilia collection. At this time, there are a number of bars, restaurants, cafes and even hotels in this city; nevertheless, HRC continues to be considered highlight. Naturally, the themes of HRC is not considerable, but selective. Their guests are in essence hi-end, rich, sophisticated and with high musical taste or foreigners, tourists. They come to HRC not for a glass or two or a meal only but also for a mixture of experience, style, entertainment factor, posting awareness and ultimately memories storage. . On the path to development, one more HRC is being estimated to enter into being in Hanoi - capital of Vietnam. It really is no doubt that HRC will face many issues.

Hanoi is the Vietnam second most significant in human population (6. 5 million people) with imbalance between urban and rural, metropolitan and suburban. Hanoians are not so -going, and open-minded as the southern people. They live customarily and somewhat strict, conservative in accepting anything new or weird. This is actually the obstacle to HRC with experience way which seems still new to Vietnam. Besides, there are a great number of hotels, bar, restaurants, entertainment centers, shpping department stores, even modern locations invested by foreigners that are thought to be competitors of HRC in experience market. The limit of Hanoi reaches having less aiport. As yet, Noi Bai is the only person airport and incredibly definately not Hanoi's centre (40 kilometres), the streets aren't bad however, not well synchronised yet, making some obstacles to transportation. A variety of restaurants, pub, nightclubs are existing and working in this city, that happen to be competitors sharing the marketplace in experience industry. Your competition is increasingly more intense. About the Real Real estate Market, it shows a poor fluctuation with unreasonably high price. Hanoi's land is grouped into highest market in the world, bringing the difficulty in investment. Also, the effect of global turmoil leading the decrease in hi-end people, including visitors with high affordability. Corresponding to public staticstic, this year 2010, the amount of hi-end tourists approaching to VN downs around 15-20 %. Some foreign offices temporarily close or reduce staff. The local people tend to slice the bugdet for entertainment. Therefore, an extravagance environment like HRC will be much harmed in quantity, to some extent.

However, it is clear to access many chance of HRC when deciding to develop into Hanoi.

The first opportunity is the demographics. The population of Hanoi is big at 6. 5 million, the quantity of people with high affordability are young and younger. They'll be easy at acquiring the new features like an experience. A number of Hanoians seriously and prefer to take the form of an area so luxurious and unique can be a choice expressing position, their level. Hanoi is the administrative centre, the fix quantity of foreigners ling and working here's great. Many restaurants, hotels, pubs, convention centersthat are well certified to serve a number of passengers. Embassies, international companies, NGOsare majorly located here. As well as the big variety of tourists and entrepreneurs come here. And, many events, MICE activities are firstly chosen to organised here. With 75% of HRC is travelers as statistic, Hanoi is at this benefits. Also, the monetary indicators aren't too bad, even during the economic downturn, encouraging an advantage for HRC when living standard is improved and more friends coming to this cafe.

The next opportunity is established by the differentiation strategy. Although there are a big amount of hotels, restaurants, club, shopping malls or entertainmnet centers, there is nothing dominant and highlighted. HRC with the unique features by chain tradition will in actuality draw in customers.

In addition, the transportation in Hanoi is increasingly more much better. Hanoi is the hub of north region, the hyperlink of metropolitan areas, provinces in North. Except from the lack of synchronisation in streets and a larger international airport with bigger capacity, the travel system is relatively good. Noi Bai - a global aiport with a brief history of 33 years and a capacity of 10 million passengers per year numerous airlines (VNA, China Flight, Singapore Airlines, Jetstar) and direct flights to in another country. Hanoi also offers famous river right at the center of city and a railway stop that is not far from the guts. They are conveniences!

Hanoi also brings HRC another opportunity of safe practices. Vietnam is considered one of 10 safe places. Everyone can make sure about the politics risk in our country. A well balanced and unified political regime together with a higher security can definitely bring the dazzling possible of business.

Hanoi with high living standard, a lot of local people are able to highly manage, having high requirements in musical flavour and quality. This is actually the cradle of rock and roll with a large number of admirers. Because of this, HRC with Rock'n'Roll sensibility can totally meet their needs and most liked.

Moreover, HRC first came to Vietnam by Franchised done by Viet Thai International in 2009 2009. Viet Thai International is a successful corporation in Highlands cafe chain. It is obvious that HRC can continue experience in doing functions in cafe specifically and in experience industry in general.

HRC has been having strong brand and reputation.

In simple, with a lot of opportunities analysed above, it is clear that HRC makes a decision of development to Hanoi is fair. And, it is without doubt that HRC will continue their success if they continue to be faithful to system's spirit - The Rock'n'Roll sensibility so that friends come here not for just a meal or a drink, but a mixture of experience, style, entertainment factor, sharing awareness and eventually memories storage. This is the feeling that can not be found everywhere except HRC string, as yet.

=> Choose central district (Hoan Kiem) at Vincom Plaza

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