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Hard Rock Café: Business Expansion Insights

Hard Rock Cafe is a chain of restaurants founded in 1971 in London. It has expanded to over 175 locations in 53 countries, decorated with rock memorabilia and serving American food with music video clips. The chain also operates hotels, casinos, and a theme park, with the mission of providing a memorable rock and roll experience through food and entertainment.

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0% found this document useful (0 votes)
9 views12 pages

Hard Rock Café: Business Expansion Insights

Hard Rock Cafe is a chain of restaurants founded in 1971 in London. It has expanded to over 175 locations in 53 countries, decorated with rock memorabilia and serving American food with music video clips. The chain also operates hotels, casinos, and a theme park, with the mission of providing a memorable rock and roll experience through food and entertainment.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
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FINAL PRACTICAL WORK

HARD ROCK CAFÉ

Master in Business Administration MBA 8° 4°

Subject Innovation Management

Student : David Alonso Aguilera Ardaya

Date : 07/12/2019

Santa Cruz - Bolivia


INTRODUCTION

Hard Rock Cafe is a restaurant chain founded in 1971 by Isaac.


Tigrett and Peter Morton. All the establishments are decorated with
cult objects of rock such as guitars from famous bands, and while we
it serves typical American food and features music videos from bands
belonging to the genre.

BACKGROUND

Hard Rock Cafe is a chain of restaurants founded in 1971 by Isaac.


Tigrett and Peter Morton. All the establishments are decorated with
cult objects of rock like guitars from famous bands, and while they
typical American food is served and music videos from bands are shown
belonging to the genre.

EXPANSION AROUND THE WORLD

The first branch was opened next to Hyde Park Corner in London. The café
takes its name from the release of the album "Morrison Hotel" by The Doors in
1970. Eight years later, in 1978, a second one opens in Toronto.
Establishment. In 1982, the global expansion of coffee begins all over the
world, including all of Europe, North America, Latin America, Asia, Australia,
the Caribbean and some countries in Africa. Gradually the Hard Rock chain
Cafés have been established in the major cities of the world, becoming
a reference of popular culture, a busy tourist destination while
the brand image was being universalized. In 1990, the Rank Organisation
(currently The Rank Group) acquires the cafes managed by Peter
Morton continues to expand the brand, with more than 175 Hard Rock Cafes.
in 55 countries. In 2007, Hard Rock was sold to the Seminole Tribe of the
Florida, and it is based in Orlando, Florida. Currently, there are 175 locations.
Hard Rock in 53 countries with the largest one in Orlando.
EXPANSION TO OTHER BUSINESSES

The franchise has also opened hotels and casinos, including Hard Rock.
Hotel & Casino in Las Vegas. In 2008, the Hard Rock Park opened its doors,
a theme park in South Carolina.

MISSION

The mission of Hard Rock Café has been: 'to spread the spirit of Rock and Roll'
by delivering a memorable experience in food and entertainment.

VISION

At H.R.C., we are committed to being a significant contributor to the


community and provide the H.R.C. family with a fun working environment,
healthy and educational while ensuring our long-term success

VALUES

The company's values are summarized in 4 pillars which are:

Love all – Serve all


Take time to be kind
All is one; we are all equal, the housekeeper is just as
important as the general manager)
Save the planet. It refers to everything that has to do with
what to see with its environmental care policy)
TARGET AUDIENCE

During the 90s when the brand also decides to take advantage of all its
potential and diversify into sectors such as tourism and gaming
they are creating the first Hard Rock Hotel and Casino in Las Vegas, something that the

put in a place too far for its competitors and that the brand has
has been developing with increasing momentum.

CURRENT POSITIONING

After the success achieved in the 90s, in 2000 the brand shows no signs of
deceleration and continues to expand to other places and destinations
recognized tourist sites under the franchise model. With the new hotels and
casinos, Hard Rock manages to reach and conquer new cities and countries
currently having a total of 191 establishments and becoming
in one of the most popular entertainment and fun labels
recognized in the world. Nowadays it belongs to the Seminole tribe.
from Florida, an ethnicity that has traditionally been linked to the business of the

casinos.

IDENTIFICATION OF CRITICAL SUCCESS FACTORS

Even today, it is criticized that its model has become much more
commercial of what was at one time, Hard Rock Cafe was a brand
that since its origins wanted to transform London society by addressing it
to unite and make it more inclusive. With the conversion to Hinduism that Tigrett
A few years later, it would lay the foundations of the principles and values.
by which the brand is governed and which are part of the creed that it promotes and is
effort to fulfill his service promise.
CHRONOLOGICAL EVOLUTION OF THE INDUSTRY

On June 14, 1971, the restaurant was launched in an old


Rolls Royce dealership in a modern neighborhood of the English capital. Given
that the tenant of the premises expected that the business would not last long,
a lease contract was signed for 6 months. Today, after 34 years,
The first Hard Rock Cafe is still there, exactly in the same place.

Promising Beginnings

With a 100% American gastronomic offer that is different from what was offered by the
area, which included things like hamburgers, ribs, milkshakes, corn on the cob
and apple pies, in addition to a variety of beers and drinks, the Hard
Rock Cafe in London soon gained momentum, especially when little by little the
place began to become one of the favorite spots of recognized artists and
members of British Rock bands.

Consolidation of Coffee in London

As the business consolidated and benefited from influence and support


increasingly greater that he had from great personalities from around the world
rock, it would also begin to open up to new possibilities for growth and
expansion that would not take long to capitalize on. Already in 1973, just two years

after starting the business, Paul McCartney had made the


first live music concert prior to a tour that I would be doing
that year in the United Kingdom (currently the brand produces more than 15,000
musical events throughout the year). Such was the feeling it evoked
the famous café among artists, where in 1977 Carole King released a hit called
"Hard Rock Cafe", a song in which the artist expressed great enjoyment.
and the appreciation I felt for that place.

Business growth and expansion

Only until the two founders separated and decided to go into business.
on its own, it was this that would begin to internationalize
expand into other sectors such as hospitality or gambling.

From then on, there were two companies controlling the brand: Morton's Hard
Rock America Inc, and Tigrett’s Hard Rock Cafe International.

Morton would be the first to internationalize the brand by opening the first Hard
Rock Cafe in Los Angeles in 1982 with the support of several personalities
from the show business world. However, despite Morton having been the
first to bring the concept of Hard Rock Cafe to the United States, Tigrett
he was the one who, according to critics, managed to have greater success in his effort to replicate

what I had already done with Morton in London when he brought Hard Rock to life
Cafe de Nueva York, a place where I incorporate a variety of elements
that added great attractions to the place and is still considered one of
the main attractions of the city.

However, this would not happen until 1982 when both managed to resolve
a lawsuit in the courts over the legal rights to the name Hard Rock Cafe
And each one was assigned an area in which they could operate the business.
Taking the Mississippi River as a dividing point, Morton was given the
rights to take charge of the brand throughout the west from that point on
point and to Tigrett all the east (this with some exceptions).

DESCRIPTION OF BRAND CHARACTERISTICS

Within the exponential success that the brand has had over its 34 years,
its legendary logo deserves a separate paragraph as it has become
a whole insignia that has been proudly worn over the years and that
it has practically not suffered major changes since its first design.

IDENTIFY AND DESCRIBE TECHNOLOGICAL STRATEGY


ACTUAL

Diagnosis

To stay updated, they have a website that receives more than


100,000 visits per week, and a weekly cable television program.

Design of goods and services: At Hard Rock Café, retail is its


prominent characteristic. They constantly change their products and services
to adapt to new musical tastes, they also design souvenirs and
They place great emphasis on live music. They have a very ...
visited and with a TV program. It can be said then, that it is a
service company, due to the constant interaction between the
personal and clients, their goal is to achieve that the experience of
client, beyond the menu, be as pleasant as possible.

TECHNOLOGICAL STRATEGIC PLAN

Quality management: Surveys are conducted regularly.


to evaluate the quality of the food and service of the café is rated in
a scale of 1 to 7. If the rating is not 7, the food or service
they are a failure.

Process and capacity design: In Universal Studies


Orlando, Florida, which corresponds to a traditional tourist destination,
Hard Rock Café serves more than 3,500 meals a day. The café employs
around 400 people. Most work in the restaurant, but
Some work in the store. Retail is a feature.
increasingly prominent in Hard Rock (since almost 48% of its
income comes from this source). The employees of the café include
kitchen and waiter staff, hosts and bartenders. They count on
certain with a collection of memories valued at 40 million
dollars.
Localization strategy: Hard Rock has grown from being a
Modesto bar in London to become a global powerhouse that
manages 121 cafés, 5 hotels, casinos, live music and a large
annual concert called Rockfest. In 1988, Hard Rock moved its
headquarters in Orlando, Florida, and has expanded to more than 40
places all over the United States.
Facility design: Hard Rock has become the
leading collector and exhibitor of Rock & Roll memorabilia, with
exhibitions that move between their cafés around the world. Each
one of these has a unique, immersive, and attractive environment,
ideal for music lovers and good service.
Human resources and job design: The staff is
fully qualified with a specific profile for that job, as
Aside from their job skills, they possess a personality.
attractive and are music lovers. They perform either as
kitchen staff, waiters, hosts, or bartenders.
Supply chain management: This point is in
constant change, since Hard Rock is constantly varying the
products offered to the public, depending on trends
musical and market.
Inventories, material requirements, and just-in-time deliveries:
Hard Rock has a vast inventory, not counting the food.
stock of souvenirs in their store and highly trained staff to
satisfy the demand.
Programación:El personal del café está programado en intervalos de
15 minutes to meet the seasonal and daily changes in the
demand generated by the tourist environment of Orlando. Additionally,
they program exhibitions of their memories that are conveyed among their
cafés from all over the world.

Maintenance: Hard Rock, being constantly concerned about


the quality and constantly optimizing, they are always attentive to
any defect of any nature and it is resolved
practically immediately.

TRANSFER AND DISCUSSION OF TECHNOLOGY

In recent years, the chain has received a large number of criticisms for the
loss of its spirit of support for independent music for
to become a more commercial chain. Certain things have been discarded.
types of music videos, and to this day it has become easier to find a video of
modern Pop artists who from classic Rock.

SOURCES OF FINANCING

Unlike the large number of businesses that are started, the case
The Hard Rock Cafe is one of those not very common places where the concern
its partners was not exactly through the difficulty of obtaining
financing or obtaining a loan. In the case of Isaac Tigrett as well
In Peter Morton's, it just so happened that both came from families.
settled and each had their own business.
BRAND CHALLENGES IN MARKETS

The challenges of the brand aimed to bring the classes closer together.
social issues (something that could be felt in the London society of that time)
times), they decided to open a restaurant that would offer dishes on one side
typical of the United States, but it would also attract and treat everyone who
they were in the same way.

Established to defend the founding principles of Hard Rock,


The Hard Rock Heals Foundation exists to enhance lives and resilience.
communities through the power of music.

The Hard Rock Heals Foundation seeks to build and invest in programs and
associations that contribute positively to people, communities
and the natural environment. Since 1971, Hard Rock International has continued
uniting people through the music of unifying effects. Relationships
with artists ranging from the emerging to the iconic in support of the
charity efforts around the world.
CONCLUSIONS

It can be concluded that H.R.C. offers a product that does not have much.
innovation therefore, the product is totally imitable, there are more
suppliers in the market, the products are simple (T-shirts, coffees, plates of
foods, etc.) which does not correspond to an innovation in itself by
of the company. However, H.R.C. first and foremost has a brand value.
which is difficult for another company in the industry to obtain, has a logistics
very efficient internal processes and trained personnel which leads to improved efficiency
of the company and makes it very flexible to meet the needs of the clients due to
example with very demanding quality management or performing shows
to different H.R.C. locations according to the needs of their
clientes. La experiencia del cliente es única.

Therefore, since a detailed analysis of the internal environment is available


(operations, internal logistics, etc.), and the corporate mission, one has an idea
clear about the competitive strategy with which H.R.C. penetrates the market.
BIBLIOGRAPHY

1) [[Link]/corporate/history/].

2) [Cited December of 2006.


[Link]/trabajos"/quefranq/.shtml].

3) [Cited December 2006]. [[Link]]. Interview conducted with


Francisco bonnet. November 6, 2007

Archived on January 17, 2013, in the Wayback Machine. Official website.


Consulted on December 25, 2012.

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