Stockroom Restaurant: Consulting Case Study

Task:– Assess the business of Stockroom Restaurant at the Intercontinental Sydney Double Bay, Sydney

– Identify the key issues that caused problems and failed the operation of Stockroom Restaurant.

Consulting Case Study

Stockroom Restaurant at the Intercontinental Sydney Double Bay, Sydney

Michael, the General Manager of Intercontinental Hotel in Double Bay, Sydney, has contacted your Restaurant Consulting Agency to seek assistance with the hotel Restaurant, Stockroom. Michael is an interim GM, who was assigned to the property after the former GM resigned to help the property through a difficult moment. Since the hotel was opened in 2015 the past years had been a rollercoaster. Everything seemed to work well during the first year of operations, when a solid team and product offering was established. In late 2016 both the Executive chef and Restaurant Manager resigned and left the restaurant in the hands of Sous Chef and Restaurant Assistant Manager. After the first year of operations numbers started to rapidly decrease and the customer satisfaction was very low. The senior management started receiving many complaints regarding food, service and atmosphere in the restaurant. In addition to this, during 2016 and 2017 quite a few restaurants and cafes opened in the local area, which had become a new dining hub in the city. Ever since, the numbers reached alarming levels and the job became harder, with more pressure and intensity for the staff, of which morale started to decrease and the majority of the long-standing staff left.

Stockroom Restaurant:

Stockroom opened in 2015 in conjunction with the five stars luxury Intercontinental Hotel (140 rooms), which is the only hotel in the local area. Stockroom was designed to be a French fine dining restaurant, with adjoined 30s’ inspired Stillery gin bar, which focused on elegant service and fine food to become the number one destination restaurant in the Sydney Eastern Suburbs. Even though the concept seemed successful in the first year, no feasibility study had been conducted before the restaurant opening. After the Executive Chef and Restaurant Manager left, operations kept running as per usual, however customer complaints, which had started before the departure of the two managers, started to become increasingly frequent and numbers of diners started to decrease dramatically. To relieve a bit the pressure from the staff, the GM at the time decided to modify the concept from a French fine dining restaurant to an up-market steakhouse, maintaining the name and branding of Stockroom. At present day, Stockroom is open 365 days serving breakfast from 6:30am to 10:30am, lunch from 12pm to 3pm and dinner from 6pm to 10pm. Stillery bar, which serves also Stockroom, is open from 10am to 12am every day and offers an all-day food menu in conjunction with the bar beverage menu.

Customer Base:

When initially opened, Stockroom’s main target markets were: hotel guests and locals for breakfast; business and hotel guests for lunch; families, DINK (double income no kids) for dinner. With the concept change Stockroom has seen a shift in the market it is attracting. While breakfast has remained the same, overall the restaurant is attracting an older demographic, both for lunch and dinner. The restaurant, given the up-market feel of the offering, is also appealing to groups for special events (most of them coming from the hotel conferences and in-house groups), and bridal and baby showers, which enjoy the high tea offering (normally available only in the bar) in the restaurant space. Hotel guests account for less than 20% of the total patrons for lunch and dinner, while account for more than 80% for breakfast.