SITUATION
The owner of two pizza restaurants in a city with a population of 150,000 is studying her firm's operations to be sure the company is functioning as efficiently as possible. About 70 percent of the firm's sales represent dine-in business, and 30 percent come from deliveries. The owner has always attempted to produce a good-quality product and minimize the waiting time of customers both on- and off-premises.
A recent magazine article suggested that quality is now generally abundant and that quality differences in businesses are narrowing. The writer advocated placing emphasis on saving time for customers rather than producing a high-quality product. The owner is contemplating the implications of this article for the pizza business. Realizing that her attention should be focused, she wonders whether to concentrate primary managerial emphasis on delivery time.
Question 1 Is the writer of the article correct in believing that quality levels now are generally higher and that quality differences among businesses are minimal?
Question 2 What are the benefits and drawbacks of placing the firm's primary emphasis on minimizing customer waiting time?
Question 3 If you were advising the owner, what would you recommend?