Operations management is one of the main functions which shapes the production process of an organisation. In this paper, the operation of Chicken Cottage has been chosen to illustrate the impact of operational challenges. The supply chain of Chicken Cottage has been illustrated and issues related to its operation management is provided. The supply chain management (SEM) of Chicken Cottage, which involves manufacturing and distribution of the food products to the customers, is based on a simple rule of franchising The findings and conclusion draw upon the business set up of the company, and recommendations provide remedial measures that can be applied to resolve the issues faced by Chicken Cottage.
This paper focuses on the issues faced by the operations managers related to the production of the products and its distribution to the final customers. Chicken Cottage is the chosen organisation. The study of its operational challenges help in illustrating the impact of such issues upon the business of the selected organisation. Chicken cottage is one of the fastest growing UK based fast food brand. Since its introduction in 1994 with its first store in London, Chicken Cottage has grown to become a global brand with more than 100 outlets in the UK and a number of fast food restaurants in Canada, India, Pakistan, Middle East and Slovakia (Stephenson, 2014). The offerings of Chicken Cottage are different from that of the commonly sighted items in any fast food restaurants which contributes to its competitive advantage among the high-street rivals. The menu has been designed in such a way that it caters to the appetite of all the members of the community.
Chicken cottage is a joint venture company, where 30% shares belong to Global Food Brands Inc. and the remaining 70% is acquired by Terengganu Inc. Sdn Bhd (a government-link company of Malaysia) (Chicken Cottage, 2016a). Outlets of Chicken Cottage offers a more than just a quick service in related to food, but provides for a more homely atmosphere where families can bond over a nice meal (Marketing Week, 2010). Chicken Cottage upholds the characteristics of a large chain while preserving individuality of each restaurant (Chicken Cottage, 2016b).
Analysis of the business of Chicken Cottage and its Strategic Operational Issues
Over the years, the fast food industry has grown in leaps and bounds with the increase in the frequency of visits by the consumers, making the industry one of the prime focuses of the researchers. In 2015, almost 27% of people who were surveyed, have revealed that they have visited fast food restaurants more than once in a week, presenting opportunities for the fast-food restaurants to earn profitable returns (Statista, 2016a). This has also created intensified competition for the existing organisations within the industry, which can be better reflected. The greatest competitors of Chicken Cottage are McDonald’s, KFC and Subway who occupies the top positions in the customers’ preference rankings with its increasing number of outlets around the world.