Hard Rock Cafe Global Strategy

The Hard Rock Café was founded in 1971 in London by two American expatriates, Isaac Tigrett and Peter Morton. Their original intent was to fill a need not being met by London dining establishment and to have fun doing it. The Hard Rock Café became a reflection not only of the founders’ passion for burgers, beer and rock and roll music but it grew to present a generation of rock and roll fans and eventually an entire culture of fad, fashion and music. It started as a dining place and it became an icon representing a phase of culture and trend.

In 1982, the main change has been the globalization of the brand as Hard rock Café started opening restaurants in various parts of the globe. They expanded to “destination cities,” attracting tourists that had become a winning strategy for decades. Hard Rock Café focused on globalization to reduce costs through labor, taxes and tariffs, improve supply chain, provide better goods and services, understand markets, learn to improve operations and attract and retain global talents.

Hard Rock Café brings the concept of the “experience economy” to its café operation. The term Experience Economy was first described in an article published in 1998 by B. Joseph Pine II and James H. Gilmore, titled "The Experience Economy". In it they described the experience economy as the next economy following the agrarian economy, the industrial economy, and the most recent service economy. Under the concept, Hard Rock Café dos not just serve the custom meal but a dining event (experiences) visually and audibly

Hard Rock café has also been using multi-domestic strategy through franchising and by adopting to different cultures and preferences accommodating local taste. For instance, Hard Rock focuses less on hamburgers and beef and more on fish and lobster in Britain and providing burgers without beef in India.

Hard Rock Café’s mission is to spread the spirit of Rock and Roll by delivering an exceptional entertainment and dining experience. Under the mission, total of 31,000 Hard Rockers are on the payroll in 190 venues in 58 countries. Hard Rock Café operates 144 cafes, 21 hotels and 10 casinos over the world.

2. As Hard Rock Café has changed its strategy, how has its responses to some of the 10 decisions of OM changed?

Product Design

At Hard Rock Café food is their core business however they are also selling the experience of Hard Rock. They implement continuous innovation for their food menu to excite consumer. Hard Rock’s experience strategy takes food service at a different level as customers go to their restaurants not only to dine but also for the Hard Rock experience

Hard Rock Café’s product lineup has become versatile. From the very beginning stage when it served only American style burgers and beers. It has evolved to tailor food to local tastes. Experiencing unique and unduplicated service is not forcible. It’s a bit irony. Rock music is often interpreted as one of the most representative American culture, further Western. Hard Rock Café bases its image on this pillar of American culture, however it embraces versatilities and accord to adaption. Hard Rock Café brilliantly and sophisticatedly finds the junction point of cultural outcomes, music and cuisine.

Quality Management

As its recognition grows as a global player, high level of quality had been required. In this time of era when even a slight mistake spreads in a speed of light through the internet and tarnish the company reputation. Most of all global companies are focused on quality control. As the company’s sourcing is localized, quality management of Hard Rock has changed depending on the circumstances. For example, in a country where regulation and inspection on food is not as stringent as in developed countries, food quality could be easily tempered with and it might be hard to secure reliable suppliers. The company may expect some savings coming from cheap food ingredients however, additional expenses for food inspection might incur.

Process Design

Processes should be designed for efficiency to ensure that they serve quality food all the time and sell the Hard Rock Café experience. Capacity should be aligned with the forecast demand to ensure that minimal opportunity cost is incurred.

As mentioned, experience is not forcible and one of the successful factor of Hard Rock Café was respect the local taste. As such, the design of kitchen is tailored to best fit and the way of serving is also modified.

Location

The search for the right location is Very strategic - Country to City to precise Street Corner. Looking into every detail on where to expand market to determine the success of Hard Rock as Global brand.

If Hard Rock Café had aimed to be in a dining service, then its target customer would have residents in towns not the tourists. Hard Rock Café’s mission is to provide experiences and who wound want experience most? It is a tourists. Each Hard Rock Café is unique and provides different taste (not necessarily diet). About 70% of Hard Rock’s quest are tourist and determining a location is driven by it. When entering into Vietnam, Hard Rock observed that fact that Hanoi is a potential market in terms of tourist attraction despite the fact that the city does not have as many entertainment sites as Ho Chi Minh city. In the first 8 months of 2010, Hanoi received 6milion tourism visits and the population is expected to reach 6.6million. As a strategic point, when determining a location, Hard Rock considers city’s land mark areas and high traffic areas. Within a walking distance from hotel, shopping district, Hard Rock wants to be ready to entertain quests.

Layout Design

Three (3) key factors are considered in the layout of Hard Rock Cafes, each ensuring efficiency in production and maximizing revenue potential: (1) kitchen flow for food production; (2) restaurant layout environment aligned with the experience strategy including that of memorabilia display, lighting, screens, sound and contemporary music; and, (3) location of merchandise for sale are carefully integrated to ensure maximum profit

Hard Rock varies layout depending on demographics of the target area. For example, in Guam, Hard Rock Café feels more of a family restaurant. Brighter lights and open spaces are the same typically seen in T.G.I.F or Outback. Surely a coordinator does not want to hang the life size poster of KISS at the entrance when your family is visiting as you travel with grandparents. Music is also carefully selected according to the rock genre

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