Operations Management

Assignment 11

Aleena Liaqat (19U00492)

Qs 1: Why QSR’s promoting customization?

Ans: Many quick-service restaurants (QSRs) are adding mass customization. As consumers become
increasingly tethered to their mobile phones, however, customizable orders have become easier to
create and demand has increased accordingly. Starbucks is one such example. Customer demand for
customised cold coffee beverages now represents approximately 75% of the chain’s total beverage
sales. Starbucks is rolling out a new system called Siren to meet the growing demand for cold cus-
tomized beverages. This system reduces the time required to produce a customized drink. Salad-
works is promoting customization of salad, grain bowls, or wraps. The company notes this menu
customization allows guests to accommodate dietary restrictions, cater to their individual prefer-
ences and experiment with new flavors and combinations. IHOP introduced a new Choice menu,
also aimed at giving customers more choices throughout the day. They have also introduced app
and website which allowed the consumers to customise their orders easily. Caribou Coffee launched
a new app that allows customers to save their favourite customizable drinks for easy reordering.

Qs 2: What is allowing customisation to work?

Ans: Customized items are more popular among brands due to consumer preferences and sales
growth brought on by customization. People may now get their options customised and communi-
cate by clicking a button thanks to the rising use of mobile devices and the digital revolution. To as-
sure customization, several businesses have employed a variety of techniques and models. To meet
the enormous demand for customised hot and cold beverages and warm snacks, Starbucks, for in-
stance, now employs a unique system called Siren System. The time it takes to make a Grande Pink
Drink with the Siren System has been cut from 52 seconds to 24 seconds. Additionally, Ihop has
changed its website and app to make it easier for customers to customise their orders from the new
menu. Last but not least, Caribou Coffee introduced a new app that let's users keep their most popu-
lar customizable drinks for repeat orders.

Qs 3: Is mass customization future of QSR’s?

Ans: With the high demand for customised items, mass customization will probably continue to be
popular for a few years. The preferences of consumers have changed, and they are now willing to
pay extra for goods that are manufactured in accordance with their desires. Quick Service Restau-
rants will go toward mass customization, as many already have, as a result of the desire for cus-
tomization and the growth in revenue. To mention a few, 75% of cold coffee sales at Starbucks are
customizable; Ihop recently released a new menu that is customizable; MOD Pizza; Burger King;
etc. Customization, nonetheless, could be challenging to mention. Companies need to modernise
their systems and make sure they have additional experience in order to successfully implement
customization.