Case Study: Strategic Menu Design for Enhanced Customer Experience and Operational Efficiency

Background

A prominent bar/restaurant approached Knock Knock Bang with a request to design two new print menus.

Their initial directive was clear: the menus should be visually appealing and exclude prices. The underlying assumption was that excluding prices would lend an upscale feel to their establishment and allow for dynamic pricing adjustments without the need for frequent reprints.

Initial Hypothesis

Our hypothesis was that excluding prices from the menus might negatively impact customer experience and satisfaction, given the increasing preference for price transparency.

We proposed a solution that could balance the client’s desire for flexibility with the customers’ need for transparency.

Methodology and Decision-Making Process

To validate our hypothesis and develop a comprehensive solution, we applied several decision-making methodologies:

Rational Decision-Making Model

• Problem Definition: Should prices be included on the menus?
• Criteria Identification: Customer satisfaction, transparency, cost of reprinting menus, pricing flexibility.
• Alternatives Generated: Include prices, exclude prices, hybrid approach.
• Evaluation: Assessed each alternative against criteria.
• Decision: Hybrid approach recommended.
• Implementation and Monitoring: Rollout of menus with staple item prices and QR codes for other items.

SWOT Analysis

• Strengths: Increased transparency, customer trust.
• Weaknesses: Potential reprinting costs.
• Opportunities: Use of QR codes for dynamic pricing.
• Threats: Market price volatility.
• Outcome: Hybrid approach leverages strengths and opportunities.

Cost-Benefit Analysis

• Costs: Reprinting, QR code implementation.
• Benefits: Increased satisfaction, reduced complaints, long-term loyalty.
• Net Benefit: Significant positive impact, justifying the hybrid approach.

Decision Matrix Analysis (Weighted Scoring Model)

• Criteria: Customer satisfaction, cost efficiency, transparency, flexibility.
• Scoring: Hybrid approach scored highest, validating the recommendation.

Six Thinking Hats

• White Hat: Data supports price transparency.
• Red Hat: Emotional discomfort without prices.
• Black Hat: High cost and complexity of frequent reprints.
• Yellow Hat: Potential for enhanced trust and satisfaction.
• Green Hat: Innovative use of QR codes.
• Blue Hat: Strategic planning and periodic review.
• Conclusion: Hybrid model balances all perspectives effectively.

Implementation and Solution

Menu Design

• Food and Drink Menus: Visually appealing designs incorporating prices for staple items.
• QR Codes: Integrated for dynamic pricing of frequently changing items.
• Print and Digital Integration: Menus linked to a centralized backend system for real-time updates.

Operational Efficiency

• In-House Printing Capability: Provision for printing the latest menu on regular paper for customers preferring physical copies.
• Backend System: Single source of truth for menu items, ensuring consistency across POS systems and online platforms.

Monitoring and Evaluation

We implemented the hybrid menu approach and continuously monitored customer feedback and operational metrics. Key indicators included customer satisfaction levels, frequency of menu reprints, and the impact on sales.

Results

• Customer Satisfaction: Significant improvement, with fewer complaints and increased positive reviews.
• Operational Efficiency: Reduced need for frequent reprints, leveraging QR codes for dynamic updates.
• Sales Impact: Enhanced customer trust led to increased repeat business and higher overall sales.

Showing Our Work

For those interested in the detailed process, below we outline how each decision-making methodology was applied and the insights gleaned from each approach during our analysis.

1. Rational Decision-Making Model

Steps:

1. Define the problem: Should we include prices on our restaurant menus?
2. Identify decision criteria: Customer satisfaction, transparency, cost of reprinting menus, flexibility in pricing.
3. Weigh the criteria:
   • Customer satisfaction: 40%
   • Transparency: 30%
   • Cost of reprinting: 20%
   • Flexibility in pricing: 10%
4. Generate alternatives:
   • Include prices on menus
   • Do not include prices on menus
   • Hybrid approach (include prices for staples, QR codes for others)
5. Evaluate alternatives:
   • Include prices: High satisfaction and transparency, moderate reprinting cost, low flexibility.
   • No prices: Low satisfaction and transparency, low reprinting cost, high flexibility.
   • Hybrid: Moderate satisfaction and transparency, low reprinting cost, moderate flexibility.
6. Choose the best alternative: Hybrid approach.
7. Implement the decision: Design menus with prices for staples, QR codes for other items.
8. Monitor and evaluate: Track customer feedback and menu reprinting costs.

2. SWOT Analysis

Strengths:

• Including prices increases transparency.
• Builds trust with customers.

Weaknesses:

• Potential cost for frequent reprinting.
• Reduced flexibility in pricing.

Opportunities:

• QR codes can reduce the need for frequent reprints.
• Enhance customer experience with clear information.

Threats:

• Market price volatility for ingredients.
• Possible customer frustration with hybrid approach.

Conclusion: The hybrid approach maximizes strengths and opportunities while mitigating weaknesses and threats.

3. Cost-Benefit Analysis

Costs:

• Reprinting menus: $200/month
• Implementation of QR codes: $500 (one-time)

Benefits:

• Increased customer satisfaction: Estimated 10% revenue increase ($1000/month)
• Reduced customer complaints: 20% decrease in negative reviews
• Trust and transparency: Long-term customer loyalty

Net Benefit:

• Monthly benefit: $1000 – $200 = $800
• One-time QR code cost: $500
• Conclusion: The benefits of including prices with QR codes outweigh the costs.

4. Decision Matrix Analysis (Weighted Scoring Model)

Criteria (Weight):

• Customer satisfaction (40%)
• Transparency (30%)
• Cost efficiency (20%)
• Flexibility (10%)

Alternatives:

• Include prices (Scores: 9, 9, 4, 3)
• No prices (Scores: 4, 4, 9, 9)
• Hybrid (Scores: 7, 7, 8, 6)

Weighted Scores:

• Include prices: (90.4) + (90.3) + (40.2) + (30.1) = 7.2
• No prices: (40.4) + (40.3) + (90.2) + (90.1) = 5.4
• Hybrid: (70.4) + (70.3) + (80.2) + (60.1) = 7.1

Conclusion: Including prices scores the highest, closely followed by the hybrid approach.

5. Six Thinking Hats

• White Hat (Data): Current trend shows customers prefer price transparency. QR codes are a modern solution.
• Red Hat (Emotions): Customers may feel frustrated without visible prices.
• Black Hat (Caution): Reprinting menus could be costly and time-consuming.
• Yellow Hat (Optimism): Clear pricing builds trust and enhances customer experience.
• Green Hat (Creativity): Use QR codes for dynamic pricing and reduce reprinting costs.
• Blue Hat (Process): Implement a hybrid model and evaluate its effectiveness periodically.

Conclusion: The hybrid model balances customer needs, costs, and flexibility.

6. Nominal Group Technique

Individual Ideas:

1. Include prices on all items
2. Use QR codes for dynamic pricing
3. Hybrid approach with staples priced and QR codes for others

Group Discussion:

• Pros and cons of each idea discussed
• Ranking of ideas

Consensus:

1. Hybrid approach
2. Include prices on all items
3. QR codes for dynamic pricing

Conclusion: The hybrid approach is the preferred solution.

7. Multi-Criteria Decision Analysis (MCDA)

Criteria:

• Customer satisfaction
• Cost efficiency
• Transparency
• Flexibility

Weighting:

• Customer satisfaction: 35%
• Cost efficiency: 25%
• Transparency: 25%
• Flexibility: 15%

Scoring:

• Include prices: (80.35) + (60.25) + (90.25) + (40.15) = 7.05
• No prices: (40.35) + (90.25) + (30.25) + (90.15) = 5.5
• Hybrid: (70.35) + (80.25) + (80.25) + (70.15) = 7.35

Conclusion: The hybrid approach scores the highest.

8. Pros and Cons List

Pros of Including Prices:

• Enhances transparency and trust
• Reduces customer frustration
• Meets legal requirements in some regions

Cons of Including Prices:

• Potential for frequent reprinting
• Less flexibility in pricing

Pros of Not Including Prices:

• Flexibility to adjust prices
• Lower reprinting costs

Cons of Not Including Prices:

• Customer dissatisfaction and distrust
• Potential legal issues

Conclusion: Including prices, with QR codes for dynamic items, balances pros and cons effectively.

9. FMEA (Failure Modes and Effects Analysis)

Potential Failures:

• Frequent reprinting (Impact: High, Likelihood: Moderate, Detectability: High)
• Customer dissatisfaction without prices (Impact: High, Likelihood: High, Detectability: High)

Actions:

• Use QR codes to reduce reprinting (Mitigates frequent reprinting)
• Include prices for core items (Mitigates customer dissatisfaction)

Conclusion: The hybrid approach mitigates potential failures effectively.

10. OODA Loop

Observe: Customer feedback and market trends show a preference for visible prices.
Orient: Consider the cost of reprinting and the use of QR codes.
Decide: Implement a hybrid approach with prices for staples and QR codes for others.
Act: Design and roll out the new menu, monitor feedback.

Conclusion: The OODA loop supports the hybrid approach for flexibility and customer satisfaction.

11. Multi-Criteria Decision Analysis (MCDA)

Criteria:

• Customer satisfaction
• Cost efficiency
• Transparency
• Flexibility

Weighting:

• Customer satisfaction: 35%
• Cost efficiency: 25%
• Transparency: 25%
• Flexibility: 15%

Scoring:

• Include prices: (80.35) + (60.25) + (90.25) + (40.15) = 7.05
• No prices: (40.35) + (90.25) + (30.25) + (90.15) = 5.5
• Hybrid: (70.35) + (80.25) + (80.25) + (70.15) = 7.35

Conclusion: The hybrid approach scores the highest.

12. Pros and Cons List

Pros of Including Prices:

• Enhances transparency and trust
• Reduces customer frustration
• Meets legal requirements in some regions

Cons of Including Prices:

• Potential for frequent reprinting
• Less flexibility in pricing

Pros of Not Including Prices:

• Flexibility to adjust prices
• Lower reprinting costs

Cons of Not Including Prices:

• Customer dissatisfaction and distrust
• Potential legal issues

Conclusion: Including prices, with QR codes for dynamic items, balances pros and cons effectively.

13. FMEA (Failure Modes and Effects Analysis)

Potential Failures:

• Frequent reprinting (Impact: High, Likelihood: Moderate, Detectability: High)
• Customer dissatisfaction without prices (Impact: High, Likelihood: High, Detectability: High)

Actions:

• Use QR codes to reduce reprinting (Mitigates frequent reprinting)
• Include prices for core items (Mitigates customer dissatisfaction)

Conclusion: The hybrid approach mitigates potential failures effectively.

14. Root Cause Analysis

Problem: Should we include prices on our restaurant menus?
Root Causes:

• Customer dissatisfaction: Patrons feel uncomfortable without knowing prices.
• Market volatility: Ingredient costs fluctuate frequently.
• Reprinting costs: High cost of updating physical menus regularly.

Solutions:

• Customer dissatisfaction: Include prices for transparency.
• Market volatility: Use QR codes for items with fluctuating prices.
• Reprinting costs: Minimize reprinting by using QR codes and updating online menus.

Conclusion: A hybrid approach addresses the root causes effectively by balancing transparency, cost, and flexibility.