A Comprehensive Analysis of Azia Restaurant

Prepared by: Taem NowlanDecember 7, 2008

Joseph AgriestiPatrick Cattoor

Tom Haag Christine Hoene Kayla Nowlan

Evan Schawartz

Table of Contents-Executive Summary.........................................................................................................5Introduction......................................................................................................................5

Part I- Examine the Organization from a Strategic Perspective..........................................7A.) An overview of Azia's: Strategies and Planning Activities.......................................7

Mission Statement.......................................................................................................7Degree of Diversification............................................................................................7Level of Vertical Integration.......................................................................................8Industry Key Success Factors......................................................................................9Distinctive Competencies............................................................................................9Overall Corporate & Business-Level Objectives......................................................10Basic Competitive Posture.........................................................................................10Implementation Tactics.............................................................................................10Operational Planning Process....................................................................................11Evaluation Methods...................................................................................................11

B.) Porter's 5-Forces model: applied to Azia Restaurant...............................................13Porters 5-Forces Model..............................................................................................13Potential Entrants.......................................................................................................13Potential Entrants.......................................................................................................14Bargaining Power of Buyers......................................................................................14Threat of Substitute Products or Services..................................................................14Bargaining Power of Suppliers..................................................................................15Industry Competitors.................................................................................................15

C.) A Description of Azia's Marketing Strategy............................................................15Key Products and Services........................................................................................16Products/Service life cycle Velocity..........................................................................16Promotion Mix...........................................................................................................17

D.) S.W.O.T. Analysis...................................................................................................18T.O.W.S. Analysis.........................................................................................................19E.) Contrast Azia's Strategies with its Closest Competitors' Strategies........................20F.) Define Any Problems That You Foresee Regarding the Strategic Direction/Planning Efforts of Azia's Restaurant............................................................20

Part II – Azia’s Structural and Behavioral Characteristics................................................21A) Observed and Learned Behaviors On-Site...............................................................21

Structure.....................................................................................................................21Decision Making Process..........................................................................................21Leadership Style/Tendencies.....................................................................................22Culture/Ethics............................................................................................................22Level of Diversity......................................................................................................23Focus on Learning, Creativity, and Innovation.........................................................23Internal and External Recruitment Programs............................................................25Criteria for Hiring......................................................................................................25Training and Development Programs........................................................................26Criteria for Promotion into Management Positions...................................................26Motivation Techniques – Compensation...................................................................26Approach to Job Design.............................................................................................27

2

Use of Teams.............................................................................................................27Method for Assessing Employee Performance..........................................................27

B) How a Choice in HR Affects the Rest of the Organization......................................28C) The Strategic Perspective: How Azia’s Choices Help/Hinder its Competitive Advantage......................................................................................................................28D) Areas for Improvement Regarding Structural and Organizational Behaviors/Programs.......................................................................................................29

Part III- Examine Azia's Operations..................................................................................30A.) An overview of Azia's Operations...........................................................................30

Location.....................................................................................................................30Layout........................................................................................................................31Supply & Distribution Chains...................................................................................32

B.) Azia's Process Choices............................................................................................33Capacity & Productivity Levels.................................................................................33Level of Standardization vs. Customization..............................................................34Quality Program.........................................................................................................34

C.) Degree of Fit between Current Situations/Strategies and Process Choices.............37D.) Azia's QFD Matrix..................................................................................................37D.) Azia's QFD Matrix..................................................................................................38E.) How Azia's Operations Could Be Improved............................................................39

Part IV- Systems’ Analysis................................................................................................40A.) Flow of Information................................................................................................40

Sales/Marketing:........................................................................................................40Forecasting:................................................................................................................42Purchasing Inventory:................................................................................................44

B.) Integration of systems..............................................................................................46C.) Big Picture...............................................................................................................47D.) Strategic Perspective/Competitive Advantage........................................................48E.) Areas for Improvement............................................................................................49

Part V- Analyze Azia’s Financials....................................................................................51A.) Income statement.....................................................................................................51B.) The Balance Sheet...................................................................................................52C.) Basic Ratio Assessment...........................................................................................53D.) Azia’s Financials versus its “competition”..............................................................55E.) Areas for improvement regarding Azia’s financials................................................56

Part VI- Recommendations for Azia.................................................................................57A.) Problem Areas.........................................................................................................57

Part VII- Appendix............................................................................................................59Facilities Tour................................................................................................................59Azia 2008 Projected Income Statement.........................................................................62Azia Balance Sheet 2005...............................................................................................63Azia Balance Sheet 2006...............................................................................................64Azia Balance Sheet 2007...............................................................................................65Correspondence with Client..........................................................................................66Group Responsibilities...................................................................................................73Gantt Chart Overview and Critique of Overall Group Project Effort...........................74

3

Individual Statements....................................................................................................75Thank you letters to Thom Pham...................................................................................81Azia’s Menu (everything included)...............................................................................87Gantt Chart...................................................................................................................100Bibliography................................................................................................................102

4

Executive Summary

Azia, a restaurant that is frequently described as chic, has grown and expanded in

its short existence. This has both helped and hindered the company. It has helped in the

sense that Azia has posted positive profits and serviced many customers leaving them

happy and satisfied, but it has not allowed Azia the time to develop certain parts of the

restaurant devoting the necessary time to every detail. While exploring the intricacies of

this company and its management we came up with some recommendations that may

improve their restaurant and future success.

Introduction

Located in between uptown and midtown on the corners of Nicollet and 26th, Azia

has carved out a niche in the market for providing “A unique dining experience” as their

mission statement says. They do not focus on any specific demographic but relish the

fact that they are able to provide a great dining evening or afternoon to just about any

person. They have the unique ability to be able to serve many different foods and eating

styles.

The restaurant has three main areas that they break the restaurant down into: the

main dining area, which includes the main bar, the Anemoni sushi bar, and the Caterpillar

lounge. Each area is unique in its own way and offers different menus, even though you

are able to order from any menu from any area.

Azia has attempted to stay on top of the restaurant game by innovating with their

menus and keeping their food fresh with the best possible suppliers. The owner Thom

Pham believes hard work combined with smart business decisions will always be an

important factor in the future of this company, and that Azia’s success is because of this.

He also believes that by his example his employees will recognize this and follow his

lead.

5

In its short history Azia has already proven that it can compete with high end

restaurants while maintaining affordability. This is one reason why Azia is considered by

many to be on top.

6

Part I- Examine the Organization from a Strategic Perspective

A.) An overview of Azia's: Strategies and Planning Activities 

Mission Statement 

Azia Restaurant's Owner and Executive Chef, Thom Pham, explains Azia's

Mission Statement as "To create an environment were People of all ages can enjoy

themselves in through the diverse menu or in one of the three different environments of

Azia".  This mission was created by Mr. Pham himself, however he does give recognition

to his staff for there effort in pursing his mission and making Azia what it is today. 

*Owner Thom Pham

 

Degree of Diversification 

In the beginning Azia started simply as a one section restaurant that offered many

classic Asian dishes and did not yet have the funds to expand or renovate.  The

restaurant's location and cuisine was an instant hit.  With the increasing number of

customers and a growing fan base Azia believed this would be a great reason to grow the

restaurant and diversify.  Conveniently the location next door to Azia became available,

as well as the location behind them.  Azia decided to combine all 3 locations and

diversify the restaurant into three different, yet connect areas.  Keeping the original

dining area, the back area became a bar and lounge area known as "The Caterpillar

Lounge", and the area to the side of them became known as "Anomone Oyster & Sushi

7

Bar" offering a whole different atmosphere and made the restaurant extremely diversified

and able to cater to a much larger crowd.

 

This plan of diversification worked extremely well and Azia is still looking for

ways to expand.  Recently Azia during the summer months has used its outdoor

boulevard to it's advantage by creating seasonal outdoor seating areas around the

building.  This not only created more space and allowed more business at one time, but

also created an atmosphere for those who want to eat while enjoying the warmer summer

weather.  They also succeeded at this by continuing to create a

unique enjoyable atmosphere and décor, even though the seating area was on the side

walk.  Mr. Pham, Owner and Executive Chef, is considering the possibility of taking

another opportunity to diversify.  The upper level of the building they are located in

recently became available.  Azia is still in the planning process, but is trying to figure out

how they could use this space to expand and diversify the restaurant even more.  Mr.

Pham states, "We are always trying to find the most unique ways to expand and

diversify".

 

Level of Vertical Integration 

Due to certain key factors Azia has a low degree of vertical integration.  The 2

major key factors Azia is lacking are 1. Not owning the property at which they operate

business and 2. Receiving all food and beverages from different suppliers.  Mr. Pham

says that the greatest thing he regrets is not owning the property his business is located

on.  He says that he could do so much more if the building belonged to him, and would

fix some of the buildings structural elements as well as redo the basement to have a more

productive and neat business office area, but until he actually owns the location there is

no reason for Azia to invest money into fixing up the basement of the property.  However

the lower level of vertical integration works well for Azia for now because they are able

to rely on many different vendors' products to offer what they do to customers, and if Mr.

Pham had chosen a different location for Azia, one that he could have purchased, Azia

8

may not be as popular and may not have had the ability to grow as much as it has,

which could have lead to its downfall.

 

Industry Key Success Factors 

The biggest success factor according to Mr. Pham is Azia's ability to attract such

a diverse demographic of people.  He believes that every person can find something on

the menu that caters exactly to their liking.  He gave the example of a person who comes

in and orders completely off the happy hour menu and another person who comes in

and wants a thousand dollar bottle of wine and best stake or seafood dishes, both leave

satisfied with there meals and the experience.  Another example would be a group of

friends who meet to catch up and chat over a quite dinner and a group of friends who

want the bar atmosphere with live dj and fun bar and lounge area, both groups of friends

can have a great time although each wanted totally different things out of the night

out. He believes that many other restaurants fail to cater to a large diverse demographic

and instead cater to smaller target markets of either higher class buyers or lower class

buyers, where as Azia has found a way to succeed in the restaurant industry and cater to

all classes of people.

 

Distinctive Competencies 

Azia's has five main strengths that distinguish them from their competitors.  The

first is the layout, Azia offers three different areas to dine in as well as an outdoor eating

area in the summer.  The second is their locations, they are located conveniently on the

corner of Nicollet Ave. and 26th street right in-between Uptown and Downtown.  The

third is their diverse cuisine, they offer everything from ceaser salad to Omokase (a large

Japanese dish).  The fourth is their pricing strategy, they offer an all night happy hour as

well as a $2000 shot of liquor both appealing to different types of people.  The fifth is the

décor, Azia has a completely unique décor that is unlike another potential competition. 

9

Because Azia is so different in these ways Mr. Pham truly believes that they do not have

any close competitors.

 

Overall Corporate & Business-Level Objectives 

The current short term goals of Azia are to begin to research the possibly of

expanding into the upper level of the building.  Azia needs to figure out how the upstairs

is going to be different without taking away business from the lounge or sushi bar yet still

attract new people to the upstairs location.  Another issue that lucky has not effected Azia

is the current economic recession.  Mr. Pham believes that because their restaurant has so

much to offer so many they have been lucky enough to not yet feel any effects of the

recession.  A long term goal is to expand and create other sister restaurants to Azia

whether throughout the state or country, Mr. Pham is always ready for something new

and want to grow his restaurants and have multiple locations. 

 

Basic Competitive Posture 

Azia prides itself on its superior quality of food, atmosphere, décor, and customer

service.  Because so many consumers are loyal to Azia they have an achievement of such

a high level of customer satisfaction shown through its fan base of repeat customers. 

Although they are not the lowest or highest cost provider, they provide so many unique

items and an experience that there is really no substitute for.

 

Implementation Tactics 

Azia is open until 2am every night of the week.  This means that they must have

an eager and efficient staff.  Each staff member must have had previous restaurant

experience and therefore know that a restaurant as busy as Azia is can be hard to come by

these days.  Therefore, motivating staff is not a problem for Azia.  The servers and

10

bartenders have to potential to make good money in tips and money as Mr. Pham says

seems to be the best motivator to keep them wanting to work later and longer shifts.

 

Operational Planning Process 

Azia uses a mixture of both formal and flexible operational methods.  For

instance, a manager may need to be more formal in making sure the duties for the day are

completed in order to accurately run the restaurant.  On the other hand, a server or bar

tender may need to be more flexible depend on what section they are working in and in

effort to keep guests happy. If a guest requests a change to a particular item on the menu

it is the servers job to put the order into the kitchen (formal) but needs to relay the special

change in the order to the cooks themselves (flexible) in order to keep the customer

service at a high level.  By having a mixture of both formal and flexible Azia is able to

maintain a well structured business while meeting individual customers needs.

 

Evaluation Methods 

In terms of forecasting, evaluating the future for Azia is always changing.  There

forecasting is  based on past data and sales patterns that help indicate what level of

performance the restaurants future should be performing at.  Evaluating performance of

the restaurant is done on a regular basis.  The restaurant orders its food and drinks from

vendors at specific times.  However it is the responsibility of certain employees at Azia to

monitor levels of food and re-order items that may be low.  For example, if it has been an

extremely busy weekend for sushi and Azia is down to its last few pounds of salmon, it

would be the head sushi chef's responsibility to order the correct amount the  restaurant

needs for about two or three days of operation based on how many items on the menu

contain that salmon.  He would need to order it direct and have it flown into the U.S. by

next day air, in order to keep the fish as fresh as possible and to keep customer service

high.  It is easy for Azia to evaluate if an employee is performing well because of

examples like the one above.  If the restaurant was completely out of salmon and had

11

to disappoint each customer that wanted salmon it would be the sushi chef's fault for not

ordering more because now they will be out for two days due to the wait of over night for

a shipment to get in.  Another way Mr. Pham evaluates his employee's performance is

found in his dedication to the restaurant.  Mr. Pham is workaholic and can be found

working or dinning at his restaurant every night until 2am.  While he is there he is

constantly observing his employees and will always point out to them in private when

they have made mistakes and gives them helpful critiques because he wants them to be

topnotch and professional.  Mr. Pham also has an all staff meeting every other Sunday

morning which is mandatory.  At this meeting he discusses new items on the menu and is

often giving employees flash cards and pamphlets to help them memorize the elements of

Azia's large menu.  Memorization is not required, but he wants them to have amicable

knowledge of the menu and what ingrediance make up each dish.

12

 

B.) Porter's 5-Forces model: applied to Azia Restaurant 

Porters 5-Forces Model 

13

Industry Competitors

Rivalry among existing firms

Buyers

Potential entrants

Subsitutes

Suppliers

Bargaining power of suppliers

Threat of new entrants

Bargaining power of buyers

Threat of substitute products or services

*Barriers to entry- Azia is such a large unique restaurant that it is difficult to compete with its variety and quality of food as well as the unique décor and experience.

*Developing neighborhood. Much room for renovation in neighboring buildings.

*Buyer Propensity to Substitute- Other dining choices in neighborhood, however Azia is open till 2 am every night.

*Diversity of food types. Azia offers predominately seafood.

* They offer a outstanding quality of service

*They have the ability to diversify within the same building

*They motivate their employees through a profit sharing program

*High volume, frequent purchasing and close relations with suppliers allows them to negotiate prices.

* Relationship with direct supplier for its seafood allows Azia to have delivery’s flown in within 2 days of ordering.

*Other restaurants offering a similar menu orders seafood from secondary suppliers.

*Not many upscale restaurants offering high price items and low affordable priced items on the same menu.

*Azia’s happy hour menu.

*Customer comes first at Azia. The owner is on site ready to solve problems to ensure customer leaves satisfied with their experience at Azia.

Porters 5-Force Model

Potential Entrants 

The barriers that arise in entering into the restaurant industry are extremely high. 

Very few restaurants have the ability to be successful unless they have been around a

long period of time and have a huge fan base, or if they are in a high traffic location and

have a good enough product to be an instant success.  Mr. Pham believes with the market

the way it is we will sadly see more restaurant going under verses starting up.  Over the

past seven years the neighborhood around Azia has grown and there now are many

restaurants on this one block chain.  Mr. Pham says that he loves the fact that other

restaurants have come into the neighborhood because even if the customers are not eating

at his location, he believes that they will see how updated the area has become, see his

restaurant, maybe look it up online, and next time they are in that area they will want to

eat at his restaurant and hopefully will keep coming back.

 

Bargaining Power of Buyers 

Price is not something that a customer can come in and bargain about.  There are

many other lower priced alternatives they could be eating at.  And if the lower priced

item of Azia does not interest them they can simply travel to a different type of

restaurant.

 

Threat of Substitute Products or Services 

There are few substitutes to the services, cuisine, and dinning experience Azia

offers all in one convenient location.  Very rarely could a large work party be held at a

restaurant and have each member of that staff be able to find something they want and

have an enjoyable night out.  No many other restaurants have such a popular bar and

lounge area while offering a fine dining experience and also having a very low key,

casual sushi bar.  Other sushi bars do not offer the same fine dining experience and other

14

fine dining restaurants do not offer lower cost alternatives or a popular bar and lounge

area with a live dj until 2am every night.

 

Bargaining Power of Suppliers 

If a supplier were unhappy with Azia and threatened to cut off service to them or

demand more money for their products, Azia would have no problem finding an

alternative.  However, because Azia is so busy while so many other restaurants are going

under a supplier would be in rough water if they are going to challenge one of their

biggest customers and possibly lose Azia's business.  Many other suppliers would be

more than happy to have the amount of business Azia would be giving them.

 

Industry Competitors 

Azia's biggest competition is most likely its neighboring restaurants.  However

Azia is open until 2am every night, meaning that even if others choose to eat dinner at a

neighboring restaurant there is still the chance that they may come to Azia for a drink or

to experience the lounge and bar atmosphere if they are not ready to go home.  And upon

entering in Azia that customer may decide to dine at Azia instead the next time they are

in that area.  Mr. Pham believes they truly have no competitors because no other

restaurant has all of the same elements that Azia does and can not please such a wide

variety of guests.

 

C.) A Description of Azia's Marketing Strategy

At this time the suggestions that we are going to make for Azia are minor but beneficial. 

We have decided this because Azia has a large fan base of repeat customers, changing the

way they run their business could effect their W.O.M. reputation.  We believe that the

best short term business strategy Azia should invest in is the expansion into the upper

level.  Expanding into the upper level will create a buzz and something new for veterans

15

of the restaurant as well as get the W.O.M. about the restaurant up again.  It will get the

W.O.M. for the restaurant up because once it is completed people will be talking about

the restaurant even more, as long as the upper level is at the same level of quality as the

rest of the restaurant.  The upper level should not be taking away from another part of the

restaurant, and Azia should take the time to figure out what the restaurant is missing and

what addition would be most successful to the 2 bars, lounge, 1 private dinning area and

2 other dinning areas.   A long term business strategy Azia could succeed at would be

expanding to other locations.  Being located between uptown and downtown has been

successful so far, but there are big markets of people in the northern and southern suburbs

that Azia could tap into.  Azia restaurant could spend some time researching which areas

could  be successful to expand into.  The best idea would be to look for a place where

they could also purchase the place they were going to be located at and not have to worry

about paying rent or making necessary updates abiding around a lease and alternate

ownership.  Each of these business strategies would make Azia successful in the short

and long run.

 

 

Key Products and Services 

Azia offers 3 different areas of the restaurant to dine, drink, and dance.  They

offer an large yet affordable happy hour as well as a classy assortment of fine foods,

wines, and liquors.  The restaurant constantly maintains a high level of customer service

and quality level of food.  Without quality cuisine or quality service, Azia would not be

as popular as it is today.

 

 

Products/Service life cycle Velocity 

Azia's product and service life cycle is accelerated in order to meet customer

needs in a timely manner and at a high level of quality.  In the restaurant industry, quick

16

service is expected, it is the servers responsibility to get the orders in promptly, is the

chef's responsibility to create a high level of cuisine, and is then the serves level to get the

completed dish out to the customer quickly upon it being made.  The life cycle of the

products, such as the fish for sushi, must always be the freshest available.  Sushi grade

fish needs to be extremely fresh, and because of Azia's great direct communication line

with its overseas vendor, the fish can be ordered and in the restaurant over night, so there

is no excuse to offer a lackluster grade of fish to any customer.

 

Promotion Mix 

Azia does not use any forms of marketing besides its website.  Azia does receive

free marketing from websites like citypages.com and other sites or magazines where food

critics have reviewed Azia's atmosphere and cuisine, and up until this point in time Azia

has received nothing but raving reviews.  Because the restaurant is so constantly busy,

and attracts so many repeat customers, they see not reason to focus any time or money

into public advertising and rely more on W.O.M.

17

 

D.) S.W.O.T. Analysis 

Strengths Weakness

Opportunities

Researching cost and effectiveness of expanding into the upstairs level

Thom efforts to expand and open

new locations

Threats

Azia is open until 2am and serves food until 2am

Thom is at Azia until 2am every night to insure every guest is

satisfied and can talk to him

personally if otherwise

Strengths-

High level of customer satisfaction

Decor

Quality of Food

Quality of service

Diversity in price

Different Atmospheres of the Restaurant

Open until 2am every night

Motivated employees

 

Weaknesses

Most employees do not have college degrees

Lack of marketing

Only one location

18

Do not own building location

 

Opportunity-

Expanding into upper level

Growth of the neighborhood

Possible sister restaurants opening in the future

Location near uptown & downtown

 

Threats

Economy could become worse and drastically effect business

Location owner could decide not to renew lease

A competitor could enter the neighborhood

 

 

T.O.W.S. Analysis

Strengths Weakness

Opportunities

The diversification of Azia’s offerings to customers and the possibility of

more growth.

As Azia does not want to spend in marketing and

focuses on W.O.M. instead, it could possibly benefit

from its use.Threats A large threat Azia

has is the current economic situation of the U.S. but Azia combats this with its diverse offering to many different

options. (main dining, sushi,

Largest external threat is a major

downturn in clientele spending

due to the economy.

19

caterpillar lounge etc.)

 

E.) Contrast Azia's Strategies with its Closest Competitors' Strategies 

Azia has few competitors that employ similar strategies.  A big difference is that

Azia has been successful on W.O.M. advertising where as many other restaurants need to

put big bucks into advertising and marketing of their restaurant and could not be busy

until 2am every night simply on W.O.M. and repeat loyal customers.  Another strategy

that sets Azia apart from its competitors is its different areas of the restaurant.  The

Caterpillar lounge area is a revenue center on its own. The Oyster & Sushi bar is also

very self supporting.  When Azia is going to sponsor a local charity event they refer to

the recorded sales from each different area and decide based on that information if the

event should be hosted by The Caterpillar Lounge or Anomone Oyster & sushi bar, this

being their only true marketing of either area of the restaurant.  Because Azia has a

different strategy from any possible competitors has proven to be very successful for the

type of business they are offering customers.

 

F.) Define Any Problems That You Foresee Regarding the Strategic Direction/Planning Efforts of Azia's Restaurant 

At this time I would suggest that if it isn't broke don't fix it.  Azia has a huge fan

base of customers and changing the way they run their business could effect their

W.O.M. reputation.  I believe expansion in to the upper level will only create more of a

buzz for veterans of the restaurant as long as it does not take away from any of the other

3 areas of the restaurant.  By establishing these 3 different areas of the restaurant, Azia

has a larger line of revenue and has the opportunity to put money into making a beautiful

decor and quality cuisine with out have to cut funds or costs and lack quality. 

20

Part II – Azia’s Structural and Behavioral Characteristics

A) Observed and Learned Behaviors On-Site

StructureAzia has a flat organizational structure. Thom Pham is the controller and is also

at the top of organization. He has an Office Manager who reports directly to him from

Azia. Below him are the other managers, and under the managers are the employees.

The organization’s structure creates a comfortable environment where all

employees are able to talk with Thom.

Decision Making ProcessThom is the head decision maker. He makes the final decisions and is responsible

for just about everything at Azia. There are a few occasions where others may be used to

help make a hiring decision, but that is normally after the candidates have been narrowed

down and usually only for important positions such as a new floor manager. Thom holds

weekly meetings with all of his staff. He invites the staff to these meetings, and often

Thom Pham

Office Manager

Restaurant Managers

Servers Hosts Cooks Bartenders

21

attends their meetings as well. It is during these weekly meetings that problems are

discussed and resolved.

Leadership Style/Tendencies

The leadership style at Azia is a mix between authoritative and participative. He

is very honest when talking to employees about the good and bad things they are doing.

It is because of this, that he is seen as authoritative. Thom, however, has been very

successful at Azia by using his authoritative approach. He has an extreme passion for his

work, and it shows.

It is also participative because Thom and the other managers play an active role in

decision making. Even though most of the decisions are made by Thom, the other

managers usually have a good deal of input.

Culture/Ethics

Although Azia does not have a Code of Ethics, the culture and ethics of the

company are strongly based on the values of Thom and his upper management. He

believes that one should, “define the company by your own example.” As time has

passed, he has learned many things by trial and error, but most of all, “We pride

ourselves on being fair,” he says.

They try to establish this fair work environment through their weekly manager’s

meetings. During the meetings, the managers discuss what is “fair.” For example, no

one is just fired at Azia. There are three warnings and a review of the employee by two

managers who are not involved in the situation before the employee is suspended without

pay. Thom says that this helps keep their ethics in check and the culture of the workplace

comfortable.

22

Level of Diversity

Azia has a significant level of diversity and is an equal opportunity employer.

Thom explains that since the restaurant industry is diverse, Azia is able to work without a

diversity program because it inevitably attracts a diverse workforce. Working with

people from different cultural backgrounds is one of Thom’s favorite parts about working

in hospitality and that shows as the staff at Azia is made up of many racial and ethnic

groups of people.

Gender is not an issue at Azia. The wait staff and hosts are pretty evenly split

between male and female. The cooks and managers have more males than females but

there aren’t any glaring examples of having too many males or females.

When I asked Thom about employees with disabilities he said, “We work with the

State and Federal guidelines for ADA. We are obligated to create a work space and

environment for anyone with a disability.” He was unaware of any employee with a

disability and said that employees know how physically demanding jobs at Azia can be.

Consequently, Azia has not received applications from disabled candidates to date.

Employees at Azia are not given time off for religious holidays. Thom said that

employees are welcome to use their paid vacation, or if they choose, unpaid time off for

such holidays.

Focus on Learning, Creativity, and InnovationAzia is very open-minded regarding creativity and innovation. It also understands

the value of employees who can learn new skills. Thom has his managers become

learned about wines and all the different aspects about them since wine sales are a key

factor in Azia’s revenue.

Thom and some of his upper level mangers take an annual trip together as well.

The trips are social but also allow them to “go out to a lot of restaurants and try to see

23

what people are doing,” he explained. This helps with learning, creativity, and

innovation.

Managers have quarterly reviews which allow them to assess their creativity and

innovation, as well as, areas that need improvement. Thom says that training and

education are put into the manager’s quarterly performance to ensure that, at the bare

minimum, they are thinking about learning, creativity, and innovation on a quarterly

basis.

24

Internal and External Recruitment Programs

Most of Azia’s employees come from an external search process. Thom said that

they will look internally first, but a lot of times there is not a second in command who

can easily take over an open position. For example, a line cook is most likely not going

to become an executive chef since the executive chef is Thom himself. It is common for

a veteran at Azia to become part of management, but Thom said that it is, “really nice to

have some fresh ideas, too.”

To get those fresh ideas, Azia goes through an external recruitment process. The

process is different depending on the position. To search for managers, Azia begins by

putting advertisements in the newspaper and online at monster.com. Thom will then

personally interview the potential managers and use his own judgment in whether or not

they will be fit for Azia.

For wait staff, an advertisement is also put in the newspaper, and the candidate

must come to the restaurant to fill out an application, and often, the interview is done on

the spot. Thom doesn’t necessarily do all of these, as many times he is out overseeing his

other restaurants and business endeavors. If he doesn’t do the interview, then it is

performed by the manager on duty.

Criteria for Hiring

Azia is always looking for employees with an entrepreneurial spirit, especially in

management positions. They need people who are creative and artistic, because the food

industry flourishes with creative and artistic people. It is not essential to have a college

degree to work at Azia, in fact, most employees do not. On the spot interviews of

potential wait staff employees allow managers and/or Thom to see if the candidate is a

good fit. If they seem competent they are likely to be hired.

25

Training and Development Programs

Azia has training and development programs for its employees. For servers, there

is a minimum three day period in which a new server shadows a current server. If the

manager does not feel the new hire is ready yet, that time period can be extended to five

or seven days. It is also likely that new servers will get a smaller section of the restaurant

before taking on a full load of tables.

New managers normally come in experienced and ready to work, so they receive

minimal training. Typically, they need to be trained in on the systems that Azia uses until

they feel they can do their job competently as Azia is definitely a different restaurant than

most traditional ones.

Criteria for Promotion into Management Positions

Employees many times are promoted to management positions despite the fact

that Azia also dabbles in external recruitment endeavors. There is no objective way to

get promoted. If the position opens up, Thom definitely takes a look at his current

employees before going external. It’s up to him to decide if any employees are fit to

become managers.

Motivation Techniques – Compensation

Both compensation and non-compensation based motivation techniques are used

at Azia. Managers who perform well are offered the option to participate in profit

sharing. Obviously wait staff are motivated on their own as they are working for tips,

which makes up most of their salary. Wages are either at or above a competitive level

and given the affluent clientele that visit Azia, the tips are usually very generous.

26

Approach to Job Design

Jobs at Azia are designed with an entrepreneurial mindset. Thom stated that it is

important to find people who think outside the box. Thinking outside of the box is

supported by profit sharing. The jobs at Azia allow employees to think creatively. For

example, Thom does not want to tell the Bar Manager how to increase bar sales, instead

he wants the Bar Manager to think, “How can I increase the bar sales?”

Use of Teams

Management rarely uses teams at Azia. Hiring is not done in teams, rather hiring

is done by individual managers. All managers have a group of employees that are below

them, so that could be considered a team. For example, the restaurant manager is in

charge of the waiters and waitresses, and the executive chef (Thom) is in charge of other

cooks. In some instances, Azia uses partners when reviewing an employee if they are

suspended without pay, but other than that teams are not widely used.

Method for Assessing Employee Performance

At Azia, Thom has one-on-one reviews with all of his managers on a quarterly

basis. During these meetings, the managers set their quarterly goals. He then reviews

these goals with the managers on a monthly basis. Goals can range from having a certain

number of “excellent” ratings on customer comment cards each month to increasing bar

sales. A manager’s performance at reaching the quarterly goals helps determine if they

will be entered into the profit sharing plan or not. If the manager misses their goals for

severely quarters in a row, it is likely that they will not be part of the profit sharing plan.

This is a big deal because managers can nearly double their salary sometimes by

participating in the profit sharing program. If Thom sees that the manger is not meeting a

goal due to lack of effort, he is likely to exercise some form of discipline. He also

27

encourages his managers to have one-on-one meetings with all the employees below

them as well.

Instead of having a policies and procedures manual for its employees, Azia has an

employee handbook. Thom explained that if they had a policies and procedures manual

they would legally have to stand by it; the handbook simply offers guidelines that the

organization is not legally obligated to follow. He said this is important because it allows

them to fire an employee without having to give three warnings, however, he does not

allow managers to terminate in anger. This means that employees are normally

suspended without pay, and then reviewed by two other managers. If the other two

managers agree that the employee should be terminated, the decision is made final.

B) How a Choice in HR Affects the Rest of the Organization

All hiring is done by managers. This directly affects the rest of the organization.

For example, Thom is known to be more authoritative which might cause him to hire

candidates who react better to that type of management. This, in turn, could affect client

relations. Additionally, if another manager hired an employee who did not respond well

to authoritative management, it might affect employee-employer relations. It is important

that Thom and all other managers carefully select their employees to ensure that both

client and employee relations continue to be positive, thus continuing to make Azia

successful.

C) The Strategic Perspective: How Azia’s Choices Help/Hinder its Competitive Advantage

Thom has had a lot of experience in the restaurant business and seems to have a

sixth sense when it comes down to hiring good, quality people to work at Azia. This

alone has given him quite the competitive advantage over other restaurants. All his

employees, from the managers to the wait staff are quite competent and only have helped

28

Azia meet its revenue goals. Also, with Thom being the executive chef, his instincts and

feel for what people what have definitely helped Azia.

D) Areas for Improvement Regarding Structural and Organizational Behaviors/Programs

Marketing is an area that needs to be better looked at according to Thom. While

there are a few ads and publicity through the media has helped, there isn’t much in terms

of advertising or marketing. Word of mouth has really helped spur business as well as

repeat customers. Thom thinks that through effective marketing he can gain even more

customers.

29

Part III- Examine Azia's Operations 

A.) An overview of Azia's Operations 

Location 

Azia Restaurant is located in Minneapolis, Minnesota on the corner of 26th and

Nicollet Ave. in-between uptown and downtown.  This location is near many businesses

and gets its business from the busy uptown and downtown areas.  Being in this location is

an advantage because it offers lots of space to expand operations, local cabs nearby,

parking lot and street parking as well as lunch traffic, and business until 2am.

30

Layout

 

24.0 in. x24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

36.0 in. x 24.0 in.

DJ booth

Up

Bathroom

Main Bar

Ma

in d

innin

g

are

a

Lounge Bar

Sushi Bar

Kitchen

storage

2nd sushi bar

Main door

Private dining backdoor

Parking

31

Azia's layout has become that of 3 different areas.  Upon entering guests are

greeted by a host and either sit in the bar area while waiting for a table, request to eat

there, or may continue to the room behind the bar which leads to the Sushi bar.  In the

Anenome Sushi bar guests may enter or exit through the revolving doorway from the

outside and are offered the full restaurant menu.  If the guests are not choosing to dine

they may walk through the dining room and into the back lounge area where local djs

play until 2am.  This back lounge area is known as the Caterpillar Lounge and also has an

entrance from the outside directly into its private area. Between the Caterpillar Lounge

and the main Azia dining area is a private dining area and an upscale bathroom.  The

Anenome Sushi Bar and main dining part offer both booths and tables that are fairly close

together but never to the point of crowding.  Seasonally, outdoor seating is available

along the boulevard; however Azia is still able to create a quite, clean, romantic

atmosphere even for this outdoor seating. 

 

Supply & Distribution Chains 

Azia has different products delivered multiple times per week depending on the

demand for certain items.  For example, Azia receives weekly deliveries of liquor and

food but if necessary can re-order more of a certain item (primarily seafood or sushi fish)

multiple times as needed.  Deliveries primary come between lunch and dinner hours as to

not stop any of the restaurant processes.  Azia does have a large storage area and two bar

areas so they are able to store large quantities of liquor and other items on shelves as well

as in the basement and kitchen area.  They also have many freezers and refrigerators for

storage of meats, fish, and other perishable items.  It is the responsibility of the head chef

and sushi chef to place orders and to throw out any expired or risky food.  Azia gets most

of its ingredients from Asian Foods, who is the major distributor to the Midwest.

Over the years Azia has found its vendors in many different ways.  Whether from referral

and meetings or offers from the suppliers themselves, Azia has been able to meet all the

restaurant needs in an orderly and timely fashion.  Mr. Pham says that he is satisfied with

32

his vendors and maintains good relationships with each and would use the same vendors

in any other restaurant he were to open.

 

B.) Azia's Process Choices 

Capacity & Productivity Levels 

Azia offers plenty of different options for its guests all in one location.  They offer

a full separate menu of wine, beer, champagne, sake, and cocktails. They offer a full all

night happy hour menu of discounted food, half priced sake bottles, wine bottles,

champagne bottles, discounted cocktails, and discounted pints of beer.  They offer a huge

menu of appetizers, salad, seafood, meat dishes, sushi, and other Asian classic items. 

With these high level of menus Azia must always focus on keeping there productivity

levels just as high.  Azia has a large capacity for guests as each dining area can seat over

100. This includes the lounge area and seasonal outdoor area. Azia has a very high level

of capacity meaning that even during very busy hours Azia does not need to rely on a

pager system or waitlist in order to seat guests and are able to get them seated in a timely

manner.

On the occasion where a large number of reserved guests will be attending, Azia

will often seat them in the separate private area near the Caterpillar Lounge or may close

down the Caterpillar Lounge for private parties.  Because most of these private parties

will not last until 2am and there is another bar area, guests will not be differed from the

Caterpillar Lounge for long when that is where they are wanting to go.  Azia has many

large reservation parties every night and does not always seat them in the private area. 

Other times the large parties can be found in the main dining area and in the sushi bar. 

For reserved parties, Azia will assign there best servers to the section and will make sure

they receive just as adequate service as if they were a smaller more intimate party of

guests. 

 

33

Level of Standardization vs. Customization 

Azia's level of standardization can be seen more on a day to day basis.  Customer

service and a high quality level of food are standards which Azia tries to meet each day. 

The process of serving guests itself is a standard process of greeting, seating, giving out

menus, informing customers about specials, taking beverages orders, taking appetizer

orders, taking meal orders, and bringing each to the guest in a timely manner and

continuing to serve the guest while they are eating.  This standard process is ideal for any

successful restaurant and can be an element of accreditation to the success of Azia.

However Azia's level of Customization is what making it unique and a success of

W.O.M. advertising.  Mr. Pham is the executive chef of the restaurant and has formed the

menu to what it is today.  He has used input of guests, employees, and experiences from

others throughout the process, but claims its success to the consistency of its unique

menu.  He gave the example of restaurants that serve seasonal specials or only have

certain deals at certain times of the year (Red Lobster all you can eat shrimp Tuesdays)

and says that you are targeting a type of person who just wants a deal and has to go to

your restaurant on certain days to get it.  That type of person does not want to enjoy food

and the atmosphere because they have already been told what to order and what day they

have to get it.  Azia's customization comes from the large diverse menu, the ability to get

any dish any day or time of year, the ability for customers to mold the order to their

liking and the multiple atmospheres located in one location.

 

Quality Program 

Azia focuses largely on the quality of service and experience it is providing to

customers each day.  Because they are not a highly marketed restaurant they need to keep

up the W.O.M. and repeat guests coming to the restaurant.  The best way to insure quality

service is through Azia's employees.  Azia hires managers who pay attention to detail and

will help out the wait staff and customers in whatever ways they see necessary to speed

up the service process or create a better atmosphere for that customer.  Mr. Pham picks

managers based on people who want the restaurant to succeed and sees a lot of potential

34

in their ability to do so.  Mr. Pham often walks around the restaurant and greets guests

himself and makes sure that everyone is as satisfied with the outcome of the full Azia

experience.  Azia know that word of mouth is so hugely important to the restaurant so

they try to treate every guest as a food critique writing a review themselves.

 

35

Azia's Quality "Gurus"

Crosby Deming JuranDefinition of quality Conformance to

specificationsA predictable degree of uniformity and dependability at low cost and suited to the market

Fitness for use

Degree of senior management responsibility

Responsible for quality

Responsible for 85% of quality problems

Less than 20% of quality problems are due to workers

Performance standard/motivation

Zero defects Quality has many “scales”: use statistics to measure performance in all areas; critical of zero defects

Avoid campaigns to do perfect work

General approach Prevention, not inspection

Reduce variability by continuous improvement; cease mass inspection

General management approach to quality, especially human elements

Structure 14 steps to quality improvement

14 points of management 10 steps to quality improvement

Statistical Process Control (SPC)

Rejects statistically acceptable levels of quality

Statistical methods of quality control must be used

Recommends SPC but warns that it can lead to tool-driven approach

Improvement basis A process, not a program; improvement of quality

Continuous to reduce variation; eliminate goals without methods

Project-by-project team approach; set goals

Teamwork Quality improvement Employee participation in decision making; break down barriers between departments

Team and quality circle approach

Costs of quality Cost of nonconformance; quality is free

No optimum; continuous improvement

Quality is not free; there is an optimum

Purchasing and goods received

State requirements; supplier is extension of business; most faults due to purchasers themselves

Inspection too late; allows defects to enter system through AQLs; statistical evidence and control charts are required

Problems are complex; carry out formal surveys

Vender rating Yes and buyers’ quality audits useless

No, critical of most systems

Yes, but help supplier improve

Single sourcing of supply Yes No, can neglect to sharpen competitive edge

Key Fully Applies Some Application Does not apply

36

C.) Degree of Fit between Current Situations/Strategies and Process Choices

 Azia is currently experiencing a solid customer base and continuous business. 

This points out that the current process choices they are using are working effectively. 

Azia's focus is always on customer service, and the efficiency of the restaurants process

is a major component in a customers dinning experience at Azia.  One of the most

important current strategies is the process of taking the order to getting the food/drink on

the table for the customer.  Azia knows customers do not want to wait beyond a

reasonable about of time for their food/drinks.  Azia has an efficient fast process of the

wait staff taking the order from the customer, typing it into the computer, the order prints

out in the form of a receipt for the bartender or chef and their are designated people

behind the bar making drinks for the house, and designated people in the kitchen to make

appetizers vs. entrees and sushi orders go to the sushi chef.  Each of these workers get the

orders ready as quick as possible and it then is the responsibility of the wait staff to bring

the finished product back to the customer.  Because Azia has specific duties for each of

these employees fewer items are forgotten to be made, nor do they take as long to be

made.  Orders are brought out as they are ready and Azia only hires wait staff with

previous experience, so they are quick to put the orders in and get the food/drinks to their

customer.  Also the incentive of the tip from the customer and approval from the multiple

management out on the floor of the restaurant keep the servers motivated to do their best.

37

D.) Azia's QFD Matrix

Each category of the QFD matrix was decided upon because they are critical to a

dining experience at any restaurant.  We also spoke with management at Azia to

determine what they thought customers expected and based our categories off of their

answers.  From our time visiting Azia and speaking with multiple employees, we were

able to understand what Azia provides within each category to create the rating shown

below.

38

1 2 3 4 5

Food quality 12 ** - A B X

Time of service 10 * ** ** * A B X

Quality of Staff 10 ** ** ** A B X

Wide food selection 9 * A B X

Ambience 9 * * ** * * B X A

Prices 10A B X

Hours 7 * * ** A B X

Location 8 ** ** A B XImportanceWeighting

8 10 9 10 7 7

5 A B X A B X A A B X A4 B X A B X B

3 X21

Relationships:** Strong = 9# Medium = 3/ Small = 2

Customer Requirements

AziaQFD Matrix

Target Valuesstay in top range of grading system, based on feedback surveys

Technical Evaluation

(5 is best)

Restaurant Characteristics

Imp

ort

ance

toC

ust

om

er M-Sat: 11am-2am, Sun: 3pm-2am

DiversityStaffing Food quantity

Correlation:

** Strong Positive

* Positive

- Negative

UptownEmployeeTraining

X=AziaA=La Belle Vie

B=Cosmos(5 is best)

Competitive Evaluation

E.) How Azia's Operations Could Be Improved

 

Azia is always looking for ways to improve its operations and allow its guests to

have an even better experience coupled with a higher level of customer service.  Through

Mr. Pham's daily efforts to critique his wait staff and kitchen staff they are on a positive

track. He is always open to suggestions from guests, employees, and other restaurant

owners.  Azia is improving everyday and is able to keep ahead of the competition

because of Mr. Pham's dedication and personal attention to the restaurant.  I believe

improvements are minimal and are more of a case by case improvement.  The one thing I

have noticed as a frequent guest of the restaurant is that the ink on some menus has worn

and can be very hard to read.  Each time I point this out I am given a new menu, but the

badly printed menu should from that point be taken out of circulation.  This may be an

operational error as the printer at Azia is not the best quality itself.  My recommendation

to Azia would be to invest in a better printer and get the poorly printed menus out of

circulation instead of just simply dealing with the problem when a gust presents it to their

attention. 

 

39

Part IV- Systems’ Analysis

A.) Flow of Information

Sales/Marketing:

In the restaurant business, sales and marketing are of utmost importance. Getting

customers in to the establishment is the lifeblood of the business. Mr. Thom Pham

coordinates the majority of the marketing and uses his established connections to do so.

Mr. Pham will have brainstorming sessions with all the managers, the thought process

being that the more ideas from which to pull from the better. For ideas that get used Mr.

Pham has developed incentives. The main goal is to enlarge revenue to all parts of the

restaurant. Keep in mind that this establishment is divided into three main parts:

- The restaurant itself

- Caterpillar Lounge

- Anemone Sushi/Oyster Bar

These three different parts require separate marketing channels, and although there is

some bleed over, they generally reach out to different demographics. For the restaurant,

Mr. Pham uses traditional marketing highlighting its traditional elegance and world class

dining selections, along with a one of a kind experience. He does this via his web page,

twin cities reviews, and half page ads in trendy publications. For the lounge he markets to

a younger demographic and highlights the use of local DJ’s and the uptown nightlife,

plus a full service bar. For the sushi/oyster bar, the newest addition to the establishment,

he highlights that it is the best in the area and completely authentic. Mr. Pham takes a

40

unique approach to marketing, he feels that he always “wants to be something he is not

right now” and is never complacent, this is what fuels him and consequently his

marketing strategy. Ultimately he understands that the more people through the door the

healthier the business will be. He also understands that for certain day parts, this can be

improved upon.

Mr. Pham doesn’t see flooding the airwaves as an effective way to get the word

out on any of the parts of the business. Rather he sees public relations and past

experience as vital marketing techniques. PR and charity events are the biggest

techniques used, as they get the name out there, which is the primary goal, establishing

word of mouth advertising. Thom stresses a “market by need” philosophy. Magazine

reviews are also a positive source of PR/Marketing, but he does not like the use of

coupons or cut outs, as they project a different image than he likes. The magazines he

likes to get the name in are ones that would be read by groups and would bring large

amounts of people (examples in the awards below). The website (aziarestaurant.com)

offers insight into the restaurant for inquiring minds with specific links for each

individual part of the establishment, and several boasts about recent

awards/success/offerings:

- 2008 Silver Spoon Recipient: Top Three Fusion Restaurant

- 2008 AOL City's Best Date Spot Winner - Anemoni Sushi & Oyster Bar

- Open Tables Diner's Choice Hot Spot

- "Minneapolis Hot Spot" MPLS ST Paul Magazine 2008

- Bon Appétit Where to Eat 2003 & 2004

- Premier Sake Bar in Minneapolis

- City Pages 'Best Late Night Dining' 2005

41

- Food and Wine Special Mention 2003

- The Twin-Cities' Finest Waitstaff

- The Biggest Sake List in Minnesota

- Easy access to Metro-Area Hotels

- Enticing Happy Hour Features 3pm-6pm & 10pm-2am

- Valet Service Thursday through Saturday

- Colorful Nightlife Scene

- Ultra-Mod Lounge with DJs seven nights a week

- Full Menu & Dining Service 'til 2am- A Gorgeous Summertime Sidewalk Café

One aspect the website could improve upon is a list of special events, dj’s, and

additional upcoming events. I feel that this could be covered in a short weekly newsletter

by Mr. Pham, and could help drive traffic. The site also could do a better job of stressing

lunch hours and specials.

Metrics the Azia team pay attention to for developing marketing plans are

customer frequency, size of groups, check size, and new vs. existing customers. Mr.

Pham also understands that his business sees the majority of his customers in the area and

downtown so he doesn’t throw away marketing dollars at customers that he can’t get

saying, “fish where the fish are biting”.

Forecasting:Another important system that Azia incorporates is forecasting. This is an

exceptionally important aspect of the business, an integral component in running a

profitable and efficient company. Forecasting is used to help the management team

understand trends and growth in the business; this also helps predict product trends for

42

the future. Azia uses time series analysis to look at past data and find trends. Operating

decisions are guided by customer behaviors. As mentioned in the sales/marketing section,

important data is collected including check size, amount of drinks ordered, size of groups

by hour, and new vs. repeat customers, in addition to host of other important metrics.

Using these metrics is key for the short term because it gives an idea of staffing

requirements and product requirements, but it also helps reveal seasonality and hourly

production, it also helps for predictions for year to year. This is a useful tool for giving

management an idea of where the business is headed, helps them align the business

accordingly, and reveals whether or not change needs to be implemented. Forecasting

decisions directly impact operating costs and revenues.

Over the past two years Mr. Pham has seen sales increase 7%, and he has used the

tools at hand to see this and consequently forecast appropriately. He predicts future sales

growth. He currently sets 5% as a benchmark for sales growth to maintain business

health. Important projects have been developed that result in the increase in sales. The

latest project was the addition of the sushi/oyster bar, bringing in a brand new stream of

revenue without incurring much cost. They also recently tweaked the kitchen slightly to

allow for maximum efficiency. Another project that increased sales was a renewed focus

on the lunch crowd and toning the lunch menu. This resulted in a renewed marketing

effort to the lunch crowd, which includes business people looking for a classy place to

spend their hour off. While past trends are the largest indicator used when forecasting, a

more subjective and qualitative approach is used based on opinions/estimates. One

example is the use of different events in the caterpillar lounge which changes the amount

43

of inventory needed. They use this method to forecast short periods of time and new

events because there is no quantitative data from past years for predicting. Forecasting is

necessary to reveal the appropriate amount of staff for a given night to avoid too much

staff, an unnecessary cost, or too little staff, resulting in poor service. Management does

not want to make a habit of having staff on call or sending staff home early, as this may

result in irritated employees in an industry with exceptionally high turnover. Accurate

forecasting also plays a major role in inventory purchase (to be discussed later). In these

difficult economic times, almost all restaurants feel the squeeze as more people eat at

home to conserve dollars; however, although Azia has seen some reduction in traffic,

they remain relatively steady due to the demographic they serve.

Purchasing Inventory:

A restaurant without inventory is not a restaurant at all, so being in stock of the

most popular food and drink items is of utmost importance to Mr. Pham, and essential to

the health of the business. This is a very important system because it ties into everything

that a restaurant is. If inventory is low it results in employee stress and customer

dissatisfaction. There is generally a constant inflow/outflow of food inventory since it is a

relatively small kitchen with a lack of large amounts of storage space. There is more

space with the bars, both sushi and alcohol. Forecasting is used to identify trends for

ordering product, and identifies demand for new product. In terms of purchasing alcohol,

two companies are used. Azia does not use a local vendor, but rather a food dealer who

they order from 4-6 times a week depending on need. Inventory is spiked when special

events, outings, or banquets are expected. For these events, JIT delivery cannot work, and

44

similar to the toilet paper example from class, inventory must be ordered when a certain

point is hit.

For food supply, Azia primarily goes through Asian Foods. They will order mass

inventory to cover broad parts of the menu (i.e. mass quantity of chicken for multiple

chicken dishes). For sushi, Azia uses small and direct dealers (such as American Fish) on

the coasts that can deliver fast/fresh, because as Thom puts it, “experienced sushi people

can taste the difference”. For liquor, Azia uses JJ Taylor. Quantitative forecasting is used

to determine appropriate levels of food/drink inventory and shows what needs to be

purchased on a regular basis and what is more seasonal, certain drinks and sake’s for

example.

Ordering is done on a weekly basis and can change weekly. The reason is because

Mr. Pham places cost/quality of food as paramount. If a certain dealer’s cost or quality is

increasing, a different vendor is selected. There is a certain point where Mr. Pham will

not sacrifice quality for a low price. He views quality food as a pillar of the organization

and also understands that dissatisfied customers will cost the restaurant money. It is

important that from top to bottom, everyone at the restaurant is aware of schedules for

shipments, including time/day shipments will arrive. First the suppliers are made aware

of Azia’s needs, and paid accordingly. Accounting is notified and purchases are recorded.

The chef’s are also acutely aware of delivery arrivals, since they are dealing with

perishable products. On that note, manager’s are in charge of making sure Azia follows

all health and safety ordinances. Thom sees this as an ethical issue, making a promise to

45

his customer’s of a safe environment and top of the line food. He also sees this as a cost

effective issue, “In this continuously litigious society, a lawsuit could be around every

corner. We label everything and are aware of all codes and ordinances to protect what

we have built.” Naturally the restaurant industry employs a first in first out system of

inventory purchase, to protect against wasted inventory. Another measure used by Azia to

protect the interests of the restaurant, is consistently cross-referencing liquor sales in the

register against liquid in bottles, to prevent free drinks being given. Each manager is in

charge of ordering necessities for the week because Thom entrusts his people under the

belief that he has good capable people in the right positions to make purchasing

decisions. Chefs make the call in terms of amount of food/sushi. Manager’s make the call

in terms of alcohol and place settings.

B.) Integration of systems

It is clear that these different systems are all related to each other, and all are

focused on the same thing, revenue dollars. Forecasting and purchasing systems are

directly related. Forecasting is used to estimate different levels of business for different

times of the week/year and inventory is purchased accordingly. Previous data trends

show how much alcohol is to be purchased for a given week. The forecasting methods

use previous data and determine the trends in the business. Seasonality, special events,

and holidays are some of the myriad of circumstances that play a role in forecasting and

inventory purchase. The brain trust in charge of forecasting must inform those making

purchasing decisions so they are aware of projected volume. There is a fine line with

purchasing and forecasting, inventory must e received early enough to meet operational

46

requirements, but late enough to ensure appropriate storage space and product freshness.

The environment is constantly changing, so attention to forecasting is imperative and will

be shown in the inventory.

Marketing and forecasting/inventory are also correlated in that strategy is based

off of accurate sales predictions. This allows marketing dollars to be spent bringing in

customers when the restaurant needs them and not during already hot traffic days and

special events. This is also important to avoid over stretching the staff. Marketing is used

to predict customer wants, for example, certain seasonal dishes are planed at suitable

times of the year. On the other hand, increases in marketing must be made known to

those making forecasts so they can plan for promotions.

C.) Big Picture

The systems used at Azia are important to all parts of the company in distinct

ways. Sales/marketing, forecasting, and inventory purchases are all integral to an efficient

restaurant. There is a slim margin for error in this business, estimates and predictions

must be as accurate as possible to keep the business healthy. These systems must be

working in unison to keep Azia fit as a company. Forecasting predicts volume needed in

the immediate future. This allows for appropriate scheduling, inventory purchases, and

marketing to keep costs at a minimum. Having an accurate idea of business levels ensures

organization and flexibility, hallmarks of a successful business that provide a competitive

advantage. Constant deliveries keep costs low and provide inventory freshness which

ultimately keeps customers happy and coming back. Overall the best products at the best

47

prices ensure high profit margins. All three of these systems are tied to economic factors,

which are beyond Azia’s control, but must be monitored.

D.) Strategic Perspective/Competitive Advantage

These systems are effectively incorporated with one another. Forecasting provides

a competitive advantage by being strongly tied to inventory management. Without proper

inventory levels, competitive advantage is hindered. It is crucial to never be out of

product or certain liquors, as this would result in the loss of business in the immediate

future. The location does not provide a competitive advantage in that there is not a large

amount of their key demographic; however there are not a large amount of similar

options nearby. The lack of storage space, which on the surface level would appear to be

a disadvantage, conversely is a competitive advantage, as it brings product in on time and

keeps costs down by reducing lost inventory. Marketing gives an advantage by

highlighting the diversity of Azia’s options. Special event marketing and PR are also

important to sales/marketing.

48

Data Flow Diagram

The following is a data flow diagram about the customer experience from start to finish.

E.) Areas for Improvement

The number one area of improvement for Azia is in marketing. Although the

business is healthy, it is not operating near max capacity on most nights, and has

49

significant room for improvement. This could be accomplished by a strategic marketing

campaign, spending more marketing dollars on mainstream media. Great potential is

there for bringing in more customers. The main area to stress with a marketing campaign

would be towards group meetings and banquets. They could offer competitive packages

and DJ service while not disrupting other parts of the business. Groups could rent out the

entire lounge or sushi bar. An additional idea would be offering cooking lessons with the

chef’s, as Asian cuisine is increasing in popularity. Another area for improvement is in

storage capacity. While this lack of space ensures efficiency, it could be detrimental

during large scale events. More sophisticated tracking of forecasting and inventory is out

there, and although it may be costly, it would allow for increased identification of trends

and easier sales/growth predictions, while increasing accuracy.

50

Part V- Analyze Azia’s Financials

A.) Income statement

The income statement for Azia indicates that sales revenue has increase each year

since 2005. In 2007, sales revenue reached $4,700,945 the highest in the restaurants

history. This is about a 10% increase from the prior year.

With a greater volume of sales the cost of the goods sold has increased each year as

well. Costs of food stayed on average 21.06% of sales revenue from 2005-2007. This is

recently increasing due to the price of food, liquor and transportation.

Gross profit margin as percent of sales decreased from 79.6% in 2006 to 78.1% in

2007. Even though sales increased by over $427,000 gross profit as a percent of sales

still decreased because of the increase in cost of goods sold. Despite this, Azia is still in a

fairly good financial situation, however growth is remaining constant. Gross profit

margin did slightly increase by $271,505 from 2006 to 2007. When 2005’s gross profit is

taken into consideration the increase is by $809,095 from 2005 to 2007. This amounts to

a 22% increase.

Azia’s owner Thom Pham is concerned the rising food prices and its affect on

Azia’s gross margin. In an interview on October 24, 2008, Thom Pham stated that “it is

possible that our gross profit margin may decrease as sales volume increases due to the

rising costs of our fresh seafood and transportation costs”.

Typical to many restaurants, Azia gives bonuses to its managers as an incentive to

maintain increases in sales volume. Thom Pham believes that this is a great way to

ensure that managers will strive to improve the restaurant and quality of service. In 2005

bonuses were 4.14% of sales. In 2006, that number increased to 8.38%. In 2007 bonuses

51

were 7.15%. These numbers were a direct result of performance of the management staff

on sales revenue.

The variable expenses amounted to about 21.71% of sales in 2007. This was

virtually the same percentage in the previous years. The average for the three years is

21.8%.

Fixed expense includes rent for the building that isn’t owned.

Operating profit was 10.76 % of sales revenue in 2007 corresponding to 11.8% in

2006 and 10.36% in 2005. An increase in net income occurred in 2006 when net income

jumped from $375,190 in 2005 to $504395. Net income has been relatively steady since,

meaning growth has leveled out. Net income for 2007 was $505604. Projected net

income for 2008 is $511,895. This is an estimated 1.24% of sales revenue. Therefore,

again in 2008 growth is constant.

B.) The Balance Sheet

Azia’s assets include a cash, accounts receivable mostly from catering and renting of

space for private party reservation, also, food and liquor inventory. Long term assets

consist of the property lease and equipment.

Azia’s main liabilities come from its accounts payable it has no long term debt. The

accounts payable includes payroll, as well as food orders that have yet to be paid.

Overall Azia has a relatively small amount of liabilities to equity.

With no debt, the equity is virtually all retained earnings re-”invested” into the

company. While having no debt can be advantageous, it is not exactly the most efficient

way to run any company. With the acquisition of some long term debt, Azia may be

rewarded with paying lower taxes through a debt shield. The tax benefits of a highly

52

leveraged firm will greatly reduce taxes. Azia restaurant has been extremely successful

over the past 3 years with positive growth and cash flows. If Mr. Pham decided to take

on some debt Azia will probably pay a lower rate and the tax shield benefits will improve

the company’s retained earnings. However, Thom Pham has other projects including

another restaurant he has taken out debt for.

The trend of the balance sheet has been consistent over the past three years. Azia has

consistently made increasing profits and retained earnings have grown each year as well.

They have an outstanding cash flow allowing flexibility in the business. This flexibility

has allowed Mr. Pham to acquire other parts of the building as they become available. As

a result the Caterpillar lounge and the Sushi bar have been added bringing supplemental

income and diversity to the customer experience.

C.) Basic Ratio Assessment

Ratio anaylsis is an important factor in determining the financial stability and

strength of any company. In our analysis we use these ratios to compare prior years.

  2005 2006 2007

Current Ratio 3.16 2.66 2.939

Quick Ratio 2.896 1.516 2.655

Inventory Turnover Ratio 90.31 98.18 103.2

Accounts Recievable Turnover

Ratio 10.84 11.62 13.32

Current Ratio Analysis: The current ratio measures how many current assets there are

compared to the amount of current liabilities. It’s a liquidity ratio that measures a

53

company’s ability to pay its short-term obligations. In other words, the current ratio

measures whether or not the restaurant has enough resources to cover its commitments.

Azia’s current ratio has a fairly consistent range. The average current ratio for the past

three years is 2.92. Normally a current ratio can be expected between 1 - 2, but because

Azia is a restaurant, it would have higher inventory costs which will cause the current

assets to be higher, ultimately resulting in a higher current ratio. However, as we will see

later there is a high turnover of this inventory.

Quick Ratio Analysis: The quick ratio measures the short-term liquidity of the company

without taking into consideration inventory amounts. This ratio indicates the extent to

which the company could pay its current liabilities without having to rely on non-cash

assets (inventory). This ratio is more conservative than the current ratio because it

excludes inventory from current assets because some companies have difficulty turning

their inventory into cash. In the event that short-term obligations need to be paid off

immediately, there are situations in which the current ratio would overestimate a

company’s short-term financial strength. In general, quick ratios are acceptable when

ranging between 0.5 – 1. However, the higher the quick ratio the better the position of

the company. In 2007 Azia’s quick ratio was 2.655 therefore AZIA would be able to pay

off 265.5% of its current liabilities by liquidating all current assets other than inventory.

In Azia’s case a Quick Ratio would be a more reliable comparison because Azia’s

inventory is food and mostly seafood which have a very short shelf life thus becoming

obsolete.

Inventory Turnover Ratio Analysis: Inventory turnover is calculated by taking the total

sales and dividing it by the total inventory. This ratio determines the number of times

inventory was converted into sales during a time period. Since 2005, Azia’s inventory

turnover rate has increased from 90.31 to 98.18 in 2006 and subsequently 103.2 in 2007.

This increase over the years indicates that Azia is doing a better job turning its inventory

into cash in a timely manner. This ratio should be compared against industry averages.

A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies

strong sales.

54

Accounts Receivable Turnover Analysis: Accounts Receivable turnover is calculated by

taking the total sales and dividing it by the accounts receivable. The higher the rate, the

faster Azia is collecting its receivables and the more cash that is available. In 2005, the

AR turnover was 10.84 and this number jumped to 11.62 in 2006. In 2007, the rate

further increased to 13.32. As the rate continuously increases it shows that Azia is

becoming more effective in extending their credit, as well as, collecting any debts owed.

D.) Azia’s Financials versus its “competition”

Owner Thom Pham stated in an interview on October 24, 2008 said “Azia doesn’t

have competitors; we are a unique dining experience and one of a kind in this area.”

However for the purposes of this project we can compare Azia to other restaurants

serving seafood and Asian cuisine.

25 to 30% of overall expenses go towards food costs, so the remaining costs are

invested in maintaining the quality that Azia strives to give its customers. Azia also

focuses on determining a balance between conveniences, saving money and quality when

determining costs. For example, it may be more convenient for Azia to order fresh fish

through a dealers instead of directly from the source, however the opportunity cost may

that the choice deters from the quality. Another example is that it might be more

convenient for Azia to order their deserts, however it would be more cost-effective to

create their own.

A factor that not only affects Azia, but that affects the entire restaurant industry is

the increase in food prices. This affects the fixed costs of the restaurant, as well as,

disposable income of a restaurant’s customer base. Given the current economic situation

families are eating out less. With this known fact, management is working hard to

compensate by giving bonus incentives for increases in sales revenue through quality of

service and unique dining experience that keeps customers wanting to come back for

more, giving Azia a competitive advantage over other typical restaurants.

55

E.) Areas for improvement regarding Azia’s financials

Overall, Azia is doing everything right. The restaurant is making a profit,

reducing liabilities and increasing retained earnings. By changing their capital structure

by taking on some debt they can take advantage of the tax shield. However, as stated

before, owner Thom Pham doesn’t feel as though he’s in a position to expand Azia, but

he is into expanding other projects and ventures using debt as a resource. His hopes for

Azia’s expansion is to own the building he is leasing. Given the opportunity to purchase

Mr. Pham would use debt financing not only to buy the building but to make renovations.

Currently there is no incentive to renovate basement offices and other renovations

because of the fact he doesn’t own the property and doesn’t want to make significant

improvements on a property he doesn’t own.

Historically, Azia’s income statements have shown steady growth. This trend is

expected to return in for 2008. The restaurant expects both revenues and net income to

increase. Operating profits has been greater than 10% of total sales revenue for each of

the past three years. This is very encouraging news because Azia’s operating profit

margins are two to three times greater than the industry averages for revenues going to

profits. One concern in 2008 for Azia is the rising cost of food prices. The restaurant has

been able to handle this increased expense well in 2007 and seems to be well positioned

for 2008. Azia further benefits by going to their suppliers directly and cutting out the

middle men, thus cutting out the middle men costs. An increase in cost of foods sold

should not significantly impact net income.

56

Part VI- Recommendations for Azia

A.) Problem Areas

After extensively looking at Azia in many different facets and angles for the

operations management of the company we have come up with a few problem areas for

Azia and recommendations to help aid these issues. As it was covered in many areas,

Azia has a direct need to begin marketing and not relying solely on word of mouth.

Though it is a great way to have the restaurant become more well known and become

exclusive, it is proven that small dosages of marketing can greatly improve PR and

numbers in an owner’s restaurant. This does not mean that Azia needs to have a coupon

campaign, but instead needs to advertise their food and how good it is. A possible slogan

for Azia has been coined by themselves as “a unique dining experience” and moving with

that they could advertise and bring in more customers. We decided that any marketing

done, to maintain Azia’s pristine reputation would have to be very simple and elegant.

This would not require coupons or gimmicks, but instead to get Azia in the forefront of

the customer’s mind when they are not at the restaurant. If they were to advertise it

would have to be local to the restaurants location. Most likely in Uptown only. This

would be a way that Azia could receive a high cost/benefit. The amount of interest it

would peak in customers in the restaurant would be considerably higher than it is

currently and it would not take much money to implement this sort of thing.

We feel that Azia is very well positioned to react well to it’s current competitive

industry. Thom’s restaurant is within blocks of multiple restaurants that pretty much all

target the same upper class clientele, yet he does not find them as direct competitors. He

stated clearly that he hopes that they do well in their businesses and have many customers

also. He thinks that if someone is visiting those restaurants, they will see Azia, and most

likely inquire at the very least to find out what Azia is about. This positive, symbiotic

relationship makes Azia not so much a competitor, but almost like a coalition or alliance

with the other establishments. This mentality helps them to refer to each other’s

specialties and help each place carve out their niche in the market.

57

While Azia has no main direct competitors, they are in competition of their

customers with about every other restaurant in uptown and midtown. There are so many

that it is impossible to single out a few. Azia does very well despite this fact and plans to

do so. Because of their unique ability to cater to all different kinds of people with their 3

different dining areas and the very diverse menu Azia attracts all kinds of customers with

all different kinds of tastes and budgets. This gives them customer traffic that most other

restaurants do not have. Azia’s niche by its nature is very broad compared to its

competitors.

Azia’s success will primarily be determined on Thom’s current ability to lead and

to innovate. Azia cannot stand still in this economy as no business can. He must

continue to be creative with his foods and keep his restaurant fresh. He has no liabilities

long term and could change this, taking on debt and creating a tax-shelter to help with

taxes also gives him more capital to expand. The space upstairs from Azia could be a

really great addition for the restaurant and could help keep Azia at the top of the list for

its current customers. This must be done soon, possibly the next two years at least. The

earlier Thom continues to innovate, the farther he is from seeing declining profits. It is

this kind of behavior that has made Azia successful up to today, and it is this kind of

proactive dealings that will determine the success of Azia in the future.

58

Part VII- Appendix

Facilities Tour

Upon arriving at Azia for our first facilities tour we parked in the back lot designated for

Azia guests parking.  We entered through the main entrance and were greeted by a

hostess who asked us if we would be dinning this evening.  We told her that we were here

to meet the owner and she said that she would seat us and go let Thom know that we are

here.  We were escorted through the front bar and were seated in the Anemone Sushi Bar

at a large table that was fun and shaped like a boat.  Next we were greeted by a server

who gave us a menu of drinks, some happy hour menus, and dinner menus to look at and

he said he would return in a few minuets to take our order.  Moments later Thom came

over and introduced himself.  He sat down with us and told us a little bit about the history

of the restaurant and answered some of our questions.  The server came back over and

Thom was very generous and bought us some appetizers and our first round of

drinks.  Thom had to get going but told us to enjoy the food and that when were finished

Ryan the head manager would show us around the restaurant and ask us any further

questions we might have.  The food was delicious and Thom had ordered us some of his

favorite items from the menu to share.  After eating Ryan came over to our table and

showed us around the restaurant.  He first showed us around the sushi bar area where we

were seated.  He took us threw the main dinning area which was packed and showed us

where the bathrooms were and took us threw the private dining area, where a party had

just left.  He then lead us into the Caterpillar Lounge bar area that was very

busy and much louder because a local DJ was performing for the guests.  Ryan then

asked if we wanted to see the office area in the basement and the kitchen.  He lead us

through the kitchen which was extremely busy and introduced us to the head chef.  He

then lead us to the back door and to a stairway which lead to the basement.  The

basement showed the age of the building as it had not been remodeled like the decor of

the restaurant.  The ceiling was unfinished and pipes were showing.  The desks were

cubicle like meaning each person had their own little area very close to the next.  We

59

asked Ryan a few more questions and then headed back upstairs to take some pictures. 

Over all our first outing to Azia went very well.  We were able to meet with Thom.  He

treated us to a delicious dinner.  We were able to get a personal tour of the whole

restaurant during business hours and had many of our questions answered.

60

Azia Balance Income Statements 2005-2007

Azia Income Statements: 2005-2007

Azia Restaurant

2005Percent

05 Actual 06Percent

06 Actual 07Percent

07Food 2,875,182 79.41% 3,348,103 78.35% 3,712,583 78.98%Liquor 745,541 20.59% 925,363 21.65% 988,362 21.02%

Total Revenues 3,620,723 100.00% 4,273,466 100.00% 4,700,945 100.00%Avg./wk. 69,629 82,182 90,403

Cost of Goods SoldFood cost 641,508 17.72% 745,000 17.43% 893,192 19.00%Liquor cost 115,232 3.18% 126,893 2.97% 134,675 2.86%

Total Cost of Goods Sold 756,740 20.90% 871,893 20.40% 1,027,867 21.87%

Kitchen 407,179 11.25% 393,873 9.22% 439,725 9.35%Sushi bar 145,304 4.01% 168,548 3.94% 188,569 4.01%Caterpillar lounge 36,384 1.00% 23,184 0.54% 24,343 0.52%Main dining room 381,546 10.54% 463,471 10.85% 491,820 10.46%

Maintenance 0 0.00% 0 0 Staff 97,953 2.71% 102,213 2.39% 124,284 2.64%Management 201,251 5.56% 183,473 4.29% 181,846 3.87%

Net labor 1,269,617 35.07% 1,334,762 31.23% 1,450,587 30.86%

Comp service 238,179 6.58% 245,384 5.74% 225,996 4.81%Casual labor 6,033 0.17% 12,656 0.30% 5,687 0.12%Bonus 149,828 4.14% 358,059 8.38% 335,982 7.15%Tips (758,400) -20.95% (915,691) -21.43% (991,527) -21.09%

Total Labor 905,257 25.00% 1,035,170 24.22% 1,026,725 21.84%

Variable expenses 780,098 21.55% 949,017 22.21% 1,020,718 21.71%Overhead allocated 369,637 10.21% 429,846 10.06% 603,069 12.83%

Fixed 660,758 18.25% 775,842 18.15% 826,425 17.58%

Total Operating Expenses 1,810,493 50.00% 2,154,705 50.42% 2,450,212 52.12%

Other Income 308,165 8.51% 420,057 9.83% 455,850 9.70%

Other Expenses 81,208 2.24% 127,360 2.98% 146,387 3.11%

Operating Profit 375,190 10.36% 504,395 11.80% 505,604 10.76%

61

Azia 2008 Projected Income Statement

Azia Budgeted Income Statement 2008

Azia Restaurant2008 Percent 08

Food 3,900,000 78.00%Liquor 1,100,000 22.00%

Total Revenues 5,000,000 100.00%Avg./wk. 96,154

Cost of Goods SoldFood cost 897,000 17.94%Liquor cost 158,875 3.18%

Total Cost of Goods Sold 1,055,875 21.12%

Kitchen 454,134 9.08%Sushi bar 190,911 3.82%Caterpillar lounge 26,171 0.52%Main dining room 529,000 10.58%

Maintenance 0 0.00%Staff 127,682 2.55%Management 99,000 1.98%

Net labor 1,426,898 28.54%

Comp service 233,157 4.66%Casual labor 0 0.00%Bonus 260,000 5.20%Tips (1,003,156) -20.06%

Total Labor 916,899 18.34%

Variable expenses 1,040,773 20.82%Overhead allocated 1,035,000 20.70%Fixed 752,500 15.05%Total Operating Expenses 2,828,273 56.57%

Other Income 460,443 9.21%

Other Expenses 147,501 2.95%

Operating Profit 511,895 10.24%

62

Azia Balance Sheet 2005Current Assets

Cash on hand 11,000

Cash-Lakeville (16,830)

Cash-Fidelity Bank 39,177

Cash-Lakevill Payroll (27,200)

Cash- Money market 37,464

Accounts Rec- Regular 161,375

Accounts Rec- Employees 300

Accounts Rec- Catering 109,663

Accounts Rec- Rent 62,698

Inventory- Food 25,118

Inventory- Liquor 9,985

Prepaid Expenses 7,539

Total Current Assets 420,290

Long Term Assets

Leasehold Improvements 10,011

Improvements- Reserve (10,011)

Equipment 691,037

Equipment- Reserve (438,165)

Deposits 3,831

Total Long Term Assets 256,703

Total Assets 676,993

Liabilities

Current Liabilities

FICA Taxes Payable 3,756

Fed. w/h Taxes Payable 2,782

State w/h Taxes Payable 1,712

Garnishment Payable 497

Catering Deposits 75,066

Accrued Payroll Taxes 10,839

Accrues Sales Taxes 27,275

Accrued Expenses 11,080

Total Current Liabilities 133,008

Long Term Liabilities

Long Term Liabilities 0

Total Liabilities 133,008

Stockholders Equity

Capital Stock 30,205

Retained Earnings 23,997

Retained Earnings- TP 114,562

Current Year Profit 375,190

Total Stockholders Equity 543,954

Total Liabilities and Stockholders Equity 676,963

63

Azia Balance Sheet 2006Assets

Current Assets

Cash on hand 11,000

Cash-Provencial Accts Payable 11,463

Cash-New Market 264

Cash-Provencial Payroll (37,632)

Cash-Fidelity Bank 85,487

Cash-Payroll New Market 263

Cash-Savings New Market 1,504

Cash-Provencial Savings 38,551

Accounts Rec- Regular 227,036

Accounts Rec- Catering 90,497

Accounts Rec- Rent 50,263

Inventory- Food 33,131

Inventory- Liquor 14,190

Prepaid Expenses 20,201

Total Current Assets 546,219

Long Term Assets

Leasehold Improvements 78,434

Improvements- Reserve (12,292)

Equipment 876,630

Equipment- Reserve (515,968)

Deposits 4,331

Total Long Term Assets 431,136

Total Assets 977,355 Liabilities

Current Liabilities

FICA Taxes Payable 4,515

Fed. w/h Taxes Payable 3,313

State w/h Taxes Payable 2,026

Accounts Payable-Regular 56,651

Accounts Payable-Other 3,349

Catering Deposits 112,548

Note Payable 88,413

Wages Payable 7,500

Accrued Payroll Taxes 12,873

Accrues Sales Taxes 33,816

Accrued Expenses 4,000 Total Current Liabilities 329,005

Long Term Liabilities

Long Term Liabilities 0 Total Liabilities 329,005

Stockholders Equity

Capital Stock 30,205

Retained Earnings 23,997

Retained Earnings- TP 89,752

Current Year Profit 504,395

Total Stockholders Equity 648,349

Total Liabilities and Stockholders Equity 977,355

64

Azia Balance Sheet 2007Assets

Current Assets

Cash on hand 11,000

Cash-Provencial Accts Payable (1,648)

Cash-New Market 182

Cash-Provencial Payroll 2,296

Cash-Fidelity Bank 3,699

Cash-Payroll New Market 182

Cash-Savings New Market 1,523

Cash-Provencial Savings 59,286

Accounts Rec- Regular 267,883

Accounts Rec- Catering 53,372

Accounts Rec- Employees 2,115

Accounts Rec- Rent 29,645

Inventory- Food 25,654

Inventory- Liquor 22,228

Prepaid Expenses 18,331

Total Current Assets 495,749

Long Term Assets

Leasehold Improvements 78,434

Improvements- Reserve (16,853)

Equipment 926,336

Equipment- Reserve (599,131)

Deposits 6,081

Total Long Term Assets 394,867

Total Assets 890,616

Liabilities

Current Liabilities

FICA Taxes Payable 4,607

Fed. w/h Taxes Payable 3,296

State w/h Taxes Payable 1,909

Catering Deposits 74,677

Wages Payable 35,000

Accrued Payroll Taxes 13,077

Accrues Sales Taxes 36,096

Total Current Liabilities 168,662

Long Term Liabilities

Long Term Liabilities 0

Total Liabilities 168,662

Stockholders Equity

Capital Stock 30,205

Retained Earnings 23,997

Retained Earnings- TP 162,147

Current Year Profit 505,604

Total Stockholders Equity 721,953

Total Liabilities and Stockholders Equity 890,616

65

Correspondence with Client

9/30

10/24

We met twice as a group with Thom Pham at Azia Restaurant to talk about the

restaurant. The first meeting that we had at Azia was on September 30, 2008. At this

initial meeting, Thom gave us the processes of how he runs his restaurant. He gave us a

complete tour and talked about some of the restaurant features. In addition to the first

initial meeting, we had a second meeting as a group on October 24, 2008. This is where

we got down to more of the business process that happen at Azia. In addition to these

meetings, Mr. Thom Pham was kind enough to communicate with us via email or phone

as needed. The contact that our group via email and telephone throughout the semester

are as follows:

*September 27, 2008: Christine called Thom Pham to set up first meeting

*September 28, 2008: Christine emailed Thom Pham

Hi Mr. Pham,

I talked with the rest of my group today and the earliest most of them would be able to

meet on the 30th, is 4:45pm. We have to wait for some people in our group to get out of

class. Please let me know if this time would work with your schedule. If this time for

some reason doesn’t fit into your schedule we would also be able to meet any time on the

31st. Thanks again for the help on this project.

-Christine H.

*September 28, 2008: Thom Pham responds to Christine’s email

66

Christine,

Christine it was good to hear from you guys. By the way you can call me Thom. And

yeah the 30th around 5:30pm works into my schedule just fine. Why don’t you guys plan

on arriving a little after 5:30 so I can show you around and explain some of the features

of my restaurant. Plus, this will be during the dinner rush so you can see how we operate

under busy hours.

Let me know what you think.

Thom

*September 29, 2008: Christine responds to Thom’s email

Thom,

Meeting at Azia on the 30th sounds great. We appreciate your flexibility. We look

forward to meeting you and touring your restaurant. Just to let you know that a big

portion of our project focuses on analyzing company procedures and financial

information. If you are comfortable with sharing this information it would be greatly

appreciated. As for the financials, we would only be sharing them with our professor,

then at your request we could either return them or dispose of them. Furthermore, if you

have a layout / diagram of Azia it would be very helpful. Any of this information can be

emailed to me at your convenience, or I can stop by and pick it up at a time that correlates

with your free time.

Thanks again,

Christine

67

*September 29, 2008: Thom responds to Christine’s email

Christine,

You can have access to any of my numbers at your request. But, I will not have them by

tomorrow’s meeting. I will be able to get them to you at any other time after that. Also, I

will send you our floor plans through email. I look forward to meeting you guys

tomorrow.

Thom

*October 16, 2008: Christine emails Thom

Hey Thom,

We have been working on our project and we can upon a couple of questions for you.

Under our sections about Azia’s operations, we have some general questions:

What is the restaurant capacity?

Do you have statistics that measure how effective your sushi bar vs. the Caterpillar

Lounge vs. the main restaurant portion of Azia?

Also do you have statistics that can show business during lunch hours compared to dinner

hours?

How do you determine the schedule for the staff if one of the shifts is more busy than the

other?

68

I was wondering if you would be able next week to have another meeting with our group?

We have a couple of more things that we would like to discuss with you.

Thanks a lot,

Christine

*October 17, 2008: Thom responds to Christine’s email

Christine,

I am sorry to say that I am really busy for the next couple of days. The earliest that I

could possible meet with your group again would be the 24th. I am taking that day off so

any time that day works for me.

Also for the questions that you asked about:

Azia’s seating capacity is currently set at 295. That number can be adjusted though

depending on table arrangements. In addition the Caterpillar Lounge has an additional

capacity of 250. But we could these two separately.

Currently we don’t have any statistics that compare the different areas of our business.

That is a good idea.

My schedules are flexible and change frequently. I make tentative schedules but

employees usually just trade shifts with each other based on convenience for them. All

that matters to me, is that there are employees here when there should be employees here.

I hope that these answers help.

Thom

69

*October 17, 2008: Christine responds to Thom’s email:

Dear Thom,

Actually the 24th works perfectly with our schedule as well. We can also do it at anytime.

So, I guess whatever is most convenient for you will work. Let me know what time you

want to meet.

Christine

*October 19, 2008: Thom responds to Christine’s email

Christine,

Lets shoot for 5:30pm again. If it makes sense, let me treat your group to a

complementary dinner here at Azia, this way you guys could talk about the food as being

a vital part of my business.

I hope that the project is running smoothly.

Thom

*October 25, 2008: Christine emails Thom

Thom,

70

I want to thank you again for taking part of your day off to meet with us again. It is

greatly appreciated. I am speaking on behalf of the group when I say, we had a great

time last night and really enjoyed your entertainment. Thanks again.

Christine

*October 28, 2008: Pat Cattoor emails Thom

Dear Thom,

How is it going. I want to thank you for hosting us last week. Personally I have a couple

of questions to run by you about the company financials. Under labor costs, I noticed

that Azia’s labor has decreased since 2005. I was wondering if there were / are any

industry trends that you could shed light on. I would like to correlate these numbers to

current trends.

Pat Cattoor

71

*November 2, 2008: Thom responds to Pat’s email

Pat,

That’s a good question. I think that this all correlates to how we have become more

efficient as a company and can still run with fewer employees. Some of the current

trends in the industry that you could correlate to our financial statistics would be:

Current financial crisis

Cost of food has gone through the roof recently

I hope that this helps you out. If you need further info, feel free to contact me and I

would love to help you out further on these trends.

Thom

72

Group Responsibilities

Joey Agriesti Part II Gantt/Pert chart Menu Pictures QFD matrix PowerPoint

Pat Cattoor Part V and VI Financial Statements Executive Summary Revising, Editing and Formatting Executive Summary Printing and Binding

Tom Haag Part II Gantt/Pert chart Plan vs. Gantt Chart Group Critique Company Agreement

Christine Hoene Part I and III Client Liaison Facilities Tour Porter’s 5 SWOT TOWS Contacts and Pictures Correspondences

Kayla Nowlan Part V and VI Bibliography Introduction Group responsibilities Revising, Editing and Formatting Printing and Binding

Evan Schwartz Part IV Data flow diagram TQ matrix Meeting Coordinator

73

Gantt Chart Overview and Critique of Overall Group Project Effort

The Gantt chart was a very useful tool for our group.  It allowed us to see a map

of our entire plan for the project and it let us make sure that we were on pace with what

we set out to do.  It was very convenient to be able to see the separate sections of the

paper that were due and who was assigned to them, as well as the predecessors that had to

be completed prior to certain parts.  Meetings with Professor Gaffney and with Thom

were laid out clearly and we were able to pretty much stick to the dates listed on there. 

Also, goals such as milestones were noted and allowed us to properly prepare for those. 

Having final due dates for things such as the paper and PowerPoint further aided us. 

Sometimes, however, the Gantt chart could actually be a bit of a burden.  That is, earlier

before we knew what we were getting into, we may have set a due date that was

unrealistic, too demanding, or not at all practical.  We were able to update our Gantt chart

regularly though, in order to keep things up to date and to make sure we weren’t getting

too far ahead of ourselves. 

As for critiquing our group, we feel that we had both positives and negative

associated with us. Some of the positives of our group were the team aspects and open

flow of communication we had with each other. But along with our positives we also had

negatives. The main thing that our group had to deal with was everyone’s busy

schedules. It was really hard to have weekly meetings because everyone either had a job

or other group meetings already scheduled for when other people could do things. This

led to many times were we would hold meetings with only three or four people. Another

negative that we experienced and had to overcome were people’s egos. There were times

during this project were some people thought that their way is the only way to do things.

But, as the semester moved on, we turned this weakness into one of our teams’ strengths.

We realized how things were working when some people thought they were the only

people who knew what they were talking about. This led us to developing one of main

strengths which was our overall group communication.

74

Individual Statements

Joey Agreisti-

This project has helped me greatly in being able to continue my major in

marketing. As a restaurant, especially such a chic one such as Azia, lots of marketing

and promotion is needed to help boost revenues and have a good customer base. Azia

has really focused on word of mouth and building a good reputation through good

reviews through the media. It definitely has helped the business that they are doing and

studying them and working with Thom has really helped develop my own skills as a

marketer and has also helped my communication skills in interviewing him and seeing

how he interacts with others.

I now understand just how demanding it is to run a restaurant, especially

an independent one such as Azia. It’s so much more than just hiring waiters and cooks.

The financial backing and activity that needs to go on behind the scenes is much more in

depth that I had expected. I see restaurants as a whole, and especially Azia, as being

quite a challenge that has many hills to climb and yet they can be quite fulfilling for the

customers, the staff, and the owner, as Thom has really found his place in the world.

Overall, Azia has made its mark on the Minneapolis-Saint Paul community and that was

only possible because of the way Thom was able to create a project that differentiated

itself from the rest of the field and by making sure that the customers were given first-

class treatment in such a nice restaurant.

I can speak for myself as well as the other five members of my group in

that we have learned a lot about both Azia and ourselves as teammates. Everyone had to

coordinate together to help make this project possible and we had to not only rely on

ourselves, but also rely on others. We also were able to study, in depth, an independent

restaurant that really went beyond the barriers of being “just a restaurant.” Having such

an idea of combining restaurant, bar, and caterpillar lounge really helped our team see

that there is not just one way to do things. With the knowledge that we have acquired

75

from this project, if one of us were to pursue a career in the restaurant business. With our

recommendations for Azia, I believe that we would especially be suited to work for

Thom at this restaurant if that would be something that one of us would want to pursue.

Christine Hoene-

Throughout this semester of Decision Science I have learned a great deal. I have

spent lots of time in class learning everything from how to identify company cultures to

what makes them successful and up to date (mainly through operations). I have spent

much time outside of the classroom building relationships with my new found teammates

and a restaurant owner and his staff.

This class was unique in that we were encouraged to actively participate in class

by answering questions and coming up with ideas and solutions to these questions within

our group. For me personally this in class time discussing and brainstorming was a great

ice breaker for me to get to know my group on a better level. Because we were able to

laugh and communicate during class time it made it easier for us to focus and work

efficiently as a group outside of class. This is very different from other classes I have

taken here at St. Thomas. Rarely do I get to know my peers before the work on the

project actually begins, and rarely do we get to talk and get to know each other during

class time through group exercises. Also, rarely does a professor make me feel

comfortable expressing my opinions or sharing interesting stories with the class

pertaining to the topic we are discussing.

I believe this has been the most successful group I have worked with so far in my

academic career because we got to know each other during class and didn’t need to waste

time outside of class catching up or getting to know each other better. I also believe

because we had such a fun company to do that the work load and meetings at the

restaurant were actually enjoyable. I will leave this class with new knowledge and ideas

of how management runs companies and what means of operation make them successful,

76

and I will also leave with 5 new friends who I have enjoyed working with and would

happily work with on another project again!

Evan Schwartz-

This course was very interesting and was quite different from most of the courses

I’ve taken here at college. Because of this difference, this class has really stood out and

I’ve learned quite a lot from it, especially through the project. I’ve worked on team

projects before, but this class took that team approach to a whole new level. The level

and depth of the project has been rivaled by none of my other group projects. The

coordination that needs to be applied to events is something that I had overlooked

previous to this course. I learned a lot about group dynamics and the importance of

having good team chemistry. It’s one thing to be on your own and to have to study for a

test on your own accord but it’s another to have others depending on you to meet

deadlines and to produce good quality work. I think that this helped my ability to

communicate with others and allowed me to use my talents and abilities in combination

with other group members’ strong points.

As well as gaining experience in group work and in working for a team, I

also obviously learned quite a bit about Azia itself. Through Thom and all the research

that was done, I was able to grasp just what it took to run such an operation, all the way

from the operation management itself to the food to the financial activity going on behind

the scenes. It was interesting to see the parallels between running a business such as a

restaurant and working for a team in a group project such as this. It’s definitely been

quite the semester and I am quite proud of the work that was done.

Tom Hagg-

Throughout this semester you (Professor Gaffney) have challenged us to think

critically about numerous situations that might occur in real world business operations. 

77

You have taught us that companies and people have to be ready to adapt to new and

challenging situations.  For example: the I-tech discussions we had.  That was a perfect

example of how a once good company realized that they had to change or die.  You made

me understand that once I graduate college and get a real job, not everything is going to

perfect.  I have to be able to adapt. 

Throughout the course of this project I learned how important a good line of

communication can be.  When companies don’t have good internal communication they

do not run as smoothly or effectively.  This is especially true for the company that we did

for our project.  In the food / beverage industry communication is critical.  You have to

be able to communicate to your employees and with your consumers to understand their

likes and dislikes.  Like in any other industry, the customer is king.  Having open and free

dialogue with them is very important.  This leads to another thing that I learned during

this project.  People sometimes have to put their egos aside in order to achieve a better

workplace and company.

As this project went along, I feel that I grew as a student and as a perspective

business world employee.  I feel that I increased many of my attributes that will make me

a stronger candidate for future job openings.  Like I said in the previous paragraph, I feel

like I have really strengthened my ability to communicate with my peers.  Another way

that this project has made me more of an attractive employee is, it challenged me to

become a better critical thinking.  Critical thinking is key to analyzing many daily busy

functions.

Patrick Cattoor-

The assignment has most definitely contributed to my ability to analyze issues

relating to multiple facets of business.  From looking at the operations from an outside

perspective we come in with general knowledge learned in class room settings, however

once we started our in-depth analysis of Azia we were thrown into the real world of

business. I was able to apply the classroom knowledge gained from management class

78

and the accounting courses I have taken and apply it to a real business.  While focusing

on the financial section I learned many aspects of private accounting that I have yet to be

taught.  I was able to apply my foundation of knowledge to the situation and learn how

Azia does it.  It would be hard to teach private accounting in a class room setting because

there are so many different ways to record financial information, different layouts, and

different account names.  They all start with the same information and end with net

income; however how they get from point A to point B depends on the firm and the

accountant. 

             This project has given me a greater appreciation for the restaurant business and

all private businesses as a whole.  From accounting and financial statements to managing

wait staff and kitchen staff and bar staff to training the staff to creating a diverse menu

and quality experience for the customers, Thom Pham, owner of Azia, has a lot on his

plate.  We were able to take a restaurant and look at it from a whole new perspective. Not

as a customer but as business professionals with some insights and recommendations to

offer. 

            I am not sure that, especially after our in-depth analysis, anyone would want to

work in the restaurant management business.  However, this analysis has prepared our

group to know what it takes to run a successful restaurant and all that goes into managing

people, suppliers, customers, etc. 

Kayla Nowlan-

Through our team’s in-depth analysis of the restaurant Azia I have gained great

insight into the restaurant world and just what it takes to run a business. There are so

many parts to a company with many details.  It really takes someone with great

management skills to run a business, manage people, and satisfy customers along with

making a profit.  While analyzing the issues Azia faced relating to the financial section of

this paper, I realize that private companies definitely keep their accounting records

differently than the ideal way. Publicly traded companies must adhere to GAAP

79

standards while private companies make their own system, which just has to be good

enough to fill out their taxes and keep a record of sales and expenses.  Through working

with Azia’s hired accountant, I learned where to look for things I couldn’t find because I

thought they should be somewhere else.  I gained a greater insight into the relationships

between the financial statements. 

            I was skeptical when Taem Nowlan first began this project on Azia.  I wasn’t sure

that this would be a good business to base our semester long project on.  However, my

thoughts have change, although I probably will never eat there again (because I despise

even the smell of seafood) I have gained a great appreciation for Mr. Pham and all that he

has done, from the growth of his restaurant to the impact he has had on the community.

            This project has definitely added value to my knowledge of running a restaurant,

especially in the financial statement sector. I learned quite a bit about record keeping and

locating.  As a potential candidate to be hired by Azia, I don’t think I would like the job. 

First of all they have high standards for their waiting and serving staff, for example a

minimum number of years in the profession.  Secondly, the atmosphere is just not my

type.  However, I am positive that I will use my knowledge of the restaurant business and

apply it to other companies while perhaps doing audits when I become an accountant. 

When it comes to working in an actual restaurant, I don’t think I will take on that

opportunity. 

            Overall this project has helped me grow as a team member and a leader. I believe

that I have acquired even greater insight as to how to manage a team of 6 over how to

manage a restaurant.

80

Thank you letters to Thom Pham

November 26, 2008Thom PhamChef/OwnerAzia Restaurant2550 Nicollet Ave S.Minneapolis, MN 55104

Dear Thom,

Thank you very much for all of your help with this project. Our meetings with

you were informative and helpful in providing us the information that I needed to

complete my parts of this project. Also, your flexibility and willingness to communicate

with me via email whenever I needed a quick question answered was extremely helpful

and much appreciated.

Your enthusiasm for Azia Restaurant made it enjoyable for me to work on this

project and to learn about the company. Your honesty in discussing the restaurant and

looking at it with a critical eye made this project even more interesting to work with you

on. I learned a lot about running a restaurant and it was interesting to me to discover just

how much goes into making Azia a success. My parts of the project focused on Azia’s

financial statements. Thank you for sharing the financial statement information that we

needed to complete that portion of our project.

You were a great help to all of us on this project and it helped everything run

smoothly; it is greatly appreciated. Thank you again.

Sincerely,

Pat CattoorUniversity of St. ThomasMail 54052115 Summit Ave.St. Paul, MN 55105

81

November 26, 2008Thom PhamChef/OwnerAzia Restaurant2550 Nicollet Ave S.Minneapolis, MN 55104

Dear Thom,

Thank you very much for all your help during this entire project. Your

correspondence with us has been extremely helpful and I greatly appreciate your

willingness to meet with us.

I have enjoyed learning about Azia and the restaurant business in general. My

part of the project was to focus on Asia’s structure and behavioral characteristics. The

information that I gained from your insights, especially about the hiring process, were

very interesting and I appreciate your openness in discussing them. Your passion for

your job shows, and it makes me eager to begin my career after college.

This project has been a wonderful experience for me, and it would not have been

possible without you. Thanks again for all of your help.

Sincerely,

Joe AgriestiUniversity of St. ThomasMail 26502115 Summit AveSt. Paul, MN 55105

82

November 26, 2008Thom PhamChef/OwnerAzia Restaurant2550 Nicollet Ave S.Minneapolis, MN 55104

Dear Thom,

Thank you for taking time out of your busy schedule to continually meet with our

group and provide us with the information about your company. Your flexibility and

enthusiasm has enabled us to accomplish our project successfully. I feel that our group

has gained important insights on how a restaurant operates, which will help us as we

grow in our careers.

Based on what we have learned from our meeting with you, as well as our

research, I feel our group now has a stronger knowledge of how Azia operates. It is

interesting to learn about how a restaurant, specifically located within a multi-cultural

community, operates differently from other companies.

Thanks again,

Tom HaagUniversity of St. ThomasMail 54492115 Summit AveSt. Paul, MN 55105

83

November 26, 2008Thom PhamChef/OwnerAzia Restaurant2550 Nicollet Ave S.Minneapolis, MN 55104

Dear Thom,

I can’t thank you enough for agreeing to work with us on this project. It has been

a pleasure. We’re just a bunch of college kids, but we truly hope that our project will be

beneficial to you in some way. Azia has transformed so much in the last few years and I

can’t wait to hear your decision regarding possible expansion.

I appreciate your patience in dealing with our constant flow of questions and your

dedication to helping us see our project through to the end. I also thank you for taking

the time to share your extensive and valuable business knowledge and experiences with

us.

Sincerely,

Kayla NowlanUniversity of St. ThomasMail 60242115 Summit AveSt. Paul, MN 55105

84

November 26, 2008Thom PhamChef/OwnerAzia Restaurant2550 Nicollet Ave S.Minneapolis, MN 55104

Dear Thom,

Thank you for your time and effort in helping us with our school project. As

owner, chef, and restaurateur I understand your time is valuable and important. I also

would like to thank you for the valuable learning opportunity you have provided the

group and I. Your stories, experience, and insight on management gave me a learning

opportunity that I could not have come across in any text book. You’re a great guy and a

hard worker, and I know Azia will continue to be successful under your continued

leadership in the future.

Thanks again,

Evan SchwartzUniversity of St. ThomasMail 08132115 Summit AveSt. Paul, MN 55105

85

November 26, 2008Thom PhamChef/OwnerAzia Restaurant2550 Nicollet Ave S.Minneapolis, MN 55104

Thom,

Thank you for taking time out of your hectic schedule to help us on our group

presentation. I want to personally thank you for allowing us to come to Azia and have a

sit down meeting with you. I also, want to thank you for allowing us to present

information about your company with the rest of my classmates. I hope that this project

helps you as much as it helped us.

The atmosphere and workforce at your restaurant are evidence that you are a great

leader and motivator. Hopefully some day I can work in such a great atmosphere as your

current employees. I wish you and Azia the best of luck on your future endeavors.

Sincerely,

Christine HoeneUniversity of St. ThomasMail 58442115 Summit AveSt. Paul, MN 55105

86

Azia’s Menu (everything included)Starters

← TUNA CARPACCIO

← Thinly sliced Ahi, flash seared and served over fresh mango mint sauce

← CRANBERRY PUFFS

← Cream cheese wontons gone wild

← PING, PANG, PONG WINGS

← Sesame, Teriyaki, Oyster, or Curry

← FRESH HERB ROLLS

← Oceanside spring roll with dynamic herbs, halved shrimp, and shredded

chicken

← MALAYSIAN SKEWERS

← Malaysian spiced marinated chicken grilled and served with a tangy

peanut sauce

← ORANGE BEEF TENDERLOIN SATAY

← With citrus nuoc cham

← POTSTICKERS

← Stuffed with chicken, pork, or vegetables

← CALAMARI

← Cookie-breaded and served with hai nuoc cham

← WOODEN SKEWER SCALLOPS

← Rolled over lemongrass then pan-seared and served with asparagus

← SHRIMP CRISPROLLS

← A unique spin on traditional the eggroll

← AVACADO CRISPROLLS

← Our vegetarian option crisprolls

← TUNA TARTAR

← Sushi-ahi stung with wasabi

← CRAB RAGOON

← Dim Sum sized dumpling

← OYSTER ON THE HALF-SHELL

← An assortment chosen fresh daily by the chef

← CRAB CAKES

← An Azian version of the coveted Maryland style crab cake

← STEAMED MUSSELS

← In yellow curry and black bean sauce

87

Soups

← JAPAN - MISO

← Lightly fermented traditional broth with seaweed and soft tofu

← CHINA - UPLANDS WONTON

← Pleasent herbed broth, pork, and shrimp dumplings

← VIETNAM - PHO

← Generation have perfected the balance of this intricate flat-noodle soup

← AZIA'S "SPANKER" SOUP

← Cranberries, asparagus, and Azian mushrooms

← SEAFOOD NOODLE

← Fragrant seafood broth with egg noodles and vegetables

Salads

← FESTIVAL SALAD

← Fresh avacado, tomato, and quail egg tossed with greens in a mixed-berry

vinaigrette

← FILIPINO

← Chicken or steak; tropical greens, sliced jalapeno, and tosted cashews

← SHRIMP CRISPROLL SALAD

← Our shrimp crisp rolls atop rice noodles, fresh basil, cilantro, and spinach

← SEARED AHI OVER MIXED GREENS

← (also available with grilled salmon)

← CRISPY CRAB SALAD

← Fresh lump crab on mixed greens with Thai chili vinaigrette

Azia Creations

← GRILLED PORK TENDERLOIN

← With sweet potato mash and asparagus

← SPICY LETTUCE WRAPS

← With barbecued meats and fresh grilled vegetables

← KANNON STEAK & POTATOES

← Authentic French-Viet wok steak with hand cut crispy potatoes

← SWEET POTATO STEW (Vegan)

← A rich, slow stew with jackfruit, coconut milk, tofu, and mock duck

← RACK OF LAMB

← Served with a blend of exotic asian mushrooms

← GRILLED DUCK BREAST IN GREEN CURRY

88

← Set on Bow Thai pasta

← AZIA TENDERLOIN

← Wok finished on a forest of broccoli

Seafood

← CARMELLA

← A bronzed mixture of pecans, shrimp and coconut, set on vermicelli pasta

and asapragus

← DIVER SCALLOPS CHOWMEIN

← Tender scallops and mixed vegetables served over crisp noodles

← LEMONGRASS MONKFISH

← Sauteed with hot and spicy sauce and set on bow Thai pasta

← BACON WRAPPED SCALLOPS WITH DUCK

← with a blackberry sauce

← CEDAR GRILLED SALMON

← plank-smoked in-house

← HALIBUT CHEEKS

← Bowtie pasta, chive blossums, xu xu and pineapple mango relish

← GRILLED SEA BASS

← Topped over mango-mint sauce and served with sauteed spinach

← PASSION PRAWNS WITH MASHED TARO ROOT

← Seared with garlic, served with grilled asparagus

← YELLOW-FIN TUNA

← Grilled Tuna, Burmese curry paste, coconut milk, and select vegetables

← INDONESIAN SHRIMP, SCALLOPS, & CALAMARI

← In a Spice-Islands inspired sauce

← *PACIFIC BLUE (to share)

← All of the best fresh catch fish of the ocean, crafted carefully by the chef

← LOBSTER IN BLACK BEAN SAUCE

← Fresh Lobster in garlic black bean sauce

Azia Nouveau Dishes

 

← BOW THAI PASTA

89

← The flavors of peanut, coconut, and sing ha beer meld in this fusion dish

← SUKIYAKI

← The Nagoya-style "One-pot-meal" with select cuts of beef, shiitake

mushrooms, and glen veggies

← PAD THAI

← Fiery pad-noodles, green scallion, bean sprout, egg, and crushed peanut

drizzled with lime

← CRANBERRY CURRY

← A wintery fusion dish

← VIETNAMESE COCONUT CURRY

← Marinated in tumeric, served with broccoli

← THAI CURRY RED OR GREEN

← (With jalepeno & button mushrooms) A bold step into deep-color curries

← HOT & SPICY LEMONGRASS

← Grilled with field vegetables

← TERIYAKI

← Peapods, carrots, bell pepper, onion, and mushroom in classic teriyaki

← MONGOLIAN

← Straw mushrooms, peapod, tomato, water chestnut, bamboo shoots, and

onions

← NUTTY CHICKEN

← Roasted Asian watercress, almonds, cashews, peanuts, and garlic in a

tangy ginger sauce

← BASIL SUPREME

← (Boyan Island) Pineapple, mushroom jalapeno, and large chunks of green

and red pepper

ChinaTown Classics

← SESAME

← Batter-fried chicken breast in sesame sauce, served with crispy noodles

and steamed rice

← SWEET & SOUR

← Batter-fried and topped with crush-pressed sweet and sour, bell peppers,

and pineapple

← MUSHROOM PURSE

← WOK SEARED VEGETABLES

← SPINACH & PINE NUTS

90

← BROWN RICE

← JASMIN/HERBED RICE

← GRILLED ASPARAGUS

← BRUSSEL SPROUTS

← WOK CHINESE BROCCOLI

← HAND CUT CRISPY POTATO

Delectible Desserts

 

← AZIA RESERVE ZINFANDEL CHOCOLATE

← LEMONCELLO TART

← CHOCOLATE CHEESECAKE

← STRAWBERRY TUXEDOS

← JACKFRUIT CHEESECAKE

← SWEET RICE WITH FRESH MANGO

← ALMOND JOY

← SWEET RICE & COCONUT ICE CREAM

← BANANA ROLLS

← ICE CREAM (Ginger, Coconut, or Green Tea)

← MANGO SORBET

← FLAN

← CHEF’S FEATURE DESSERT

Dessert Wines

← ST. SPUPERY MOSCATO

← QUADY ELECTRA

← ALEXIS BAILLY RATAFIA

← FAR NIENTE DOLCE

← INNISKILLIN SPARKLING ICE WINE

← INNISKILLIN VIDAL ICE WINE

Port/Sherry

← SIX GRAPES

← ALVADA MADERRA

← '83 DOW'S

← GRAHAM 10 TAWNY

← OLOROSO SHERRY

91

← RAMOS PINTO PORTO RUBY

← RAMOS PINTO VINTAGE '97

← DOW'S '00

Drink & Food Specials

← 1/2 Priced Appetizer Menu

← 1/2 Priced Specialy Cocktails, Sakes, Select Wine

← $3 Tap Beers

← Sushi

← $4.95 Philadephia Roll

← $4.95 Spicy Tuna Roll

Hot Drinks

← KIOKI COFFEE   Brandy & Kahlua make our house roast even darker

← WOOLY BEAR   Coffee, Dark Creme de Cocoa, Kahlua, & Brandy

← JAVA DARK & K   Dark Rum, Kahlua, & Double Roast

← TURTLE MINT   Southern Comfort, Stoli, & rich minty hot chocolate

← IRISH COFFEE   Jameson's Irish Whiskey, & Baileys

← IRISH RED & GOLD   Bailey's, Frangelico, & Coffee

← ALMOND JOY   Amaretto di Saronno, Malibu, & hot chocolate

← HONEY POT   Chamomile & Barenjager

Specialty Teas & Coffees

We are well known for our high quality and rare teas, stop in and enjoy a pot today!

Azia Teas

Tea Types Varieties

BLACK TEAS Black Lychee, Ginger Peach, Spiced Orange, Chai

GREEN TEAS Organic Green, Houjica

JASMINE TEA Jasmine Special Grade

OOLONG TEAS Ti Kwan Yin, Fuijan Oolong

HERBAL TEAS Chamomile, Mint Petal, Azia blend, Saigon Sunrise

RARE & NOTABLE TEA Pearls of Wisdom

Due to the rarity and uniqueness of some teas, occasionally certain varieties may be hard

to find.

92

Specialty Coffees

← Cappucino

← Latte

← Mocha

← Vietnamese (Ca Phe Sua Da)

← Cubano

A few of our Single Malt Scotches

← BALVENIE 12 - 15 yr

← DALWHINNE 15 yr

← GLENLIVET 12 - 18 yr

← GLENFIDDICH 12 yr

← LAPHOROAIG 15 yr

← MACALLAN 12 - 25 yr

← GLENMOREANGIE 12 - 18 yr

← AUCHENTOSHAN 10 yr

← BOWMORE 12 - 17 yr

← LAGAVULIN 16 yr

A sample of our Cognacs & Brandys

← COURVOISIER Vs

← COURVOISER VSOP

← REMY MARTIN VSOP

← HENNESSY VSOP

← MARTELL CORDON BLEU

← HENNESSY VS

← REMY MARTIN XO

← REMY MARTIN LOUIS XIII

Wine List...A Sample of our Selections

← WHITE WINES

← Kinsen Plum, Principessa Gavi, Louis Latour Pouilly-Fuisse, Henri Boillot Les

Charmes...

← CHAMPAGNE & SPARKLING

← Cristalino Brut, Gosset Celebris, Piper Heidsieck, Dampierre Grand Cru...

← SAUVIGNON/ FUME BLANC

← Kim Crawford, Lageder Lehenhof, Frogs Leap, Ferrari Carrano...

← CHARDONNAY

93

← Steele Cuvee, Luca, Kistler, Far Niente, Jarvis...

← PINOT GRIGIO

← Riff, Lageder, Adelsheim...

← RIESLING

← Yalumba, Eroica, Brooks...

← CABERNET SAUVIGNON

← Mas Carlot, Jarvis Reserve, Viader, Mt. Veeder...

← PINOT NOIR

← Torii Mor, Morgan, Etude, Schubert...

← ZINFANDEL

← Amphora, Seghesio...

← SYRAH, SHIRAZ, PETITE SIRAH

← Iron Stone, Luca Syrah, Geyser Peak...

← MERLOT

← Windy Ridge, Genesis, Stag's Leap Winery...

Ports

← SIX GRAPES

← ALVADA MADERRA

← '83 DOW'S

← GRAHAM 10 TAWNY

Our Ports are available in 3oz. servings or by the bottle.

Dessert Wines

← BEAULIEU

← ST. SUPERY MOSCATO

← QUADY ELECTRA

← ALEXIS BAILLY RATAFIA

← FAR NIENTE DOLCE

Private Label Wines

← AZIA FORT ROCK RED Washington

← AZIA RIESLING '03 Washington

← AZIA CABERNET SAUVIGNON '03 Columbia River

← AZIA CHARDONNAY '03 Columbia Valley

← AZIA SYRAH '03 Columbia Valley

← AZIA SANGIOVESE '03 Washington

94

← AZIA VIOGNIER '04 Columbia Valley

← AZIA CABERNET FRANC ROSE '04 Columbia Valley

Sakes

← Takara Nigori

← Umenishiki

← Ichinokoura   "Ace Brewery"

← Suishin

← Sawanoi

← Onikoroshi   "Demon Slayer"

← Mineno Hakubai   "White Blossom on the Hill"

← Masumi

← Ohyama   "Great Mountain"

← Kariho

← Otokoyama   "Man's Moutain"

← Harushika   "Spring Deer"

← Ama No To   "Heaven's Door"

← Tentaka Kuni   "Hawk in the Heavens"

← Takatenjin   "Shrine of the Valley"

← Fukocho   "Moon on the Water"

← Mukune   "Root of Innocence"

← Rihaku   "Wandering Poet"

← Rihaku Nigori   "Dreamy Clouds"

← Ginga Shizuku   "Divine Droplets"

Martinis

← THOM'S TAMARIND

← MERCY

← NEVER, NEVERLAND MIX

← GINGER MARTINI

← BLUE FIN

← CLASSIC SIDE CAR

← SEX AND THE CITY COSMO

← MOJITO

← RED CURTAIN GINSENG

← HIBISCUS PASSION

← STRICTLY BALLROOM

← MOULIN ROUGE

← SAKE MARTINI

95

← ARGENTINA TANGO

← DIRTY DANCING

← A ROSE BY ANY OTHER NAME

← INNISKILLIN

← AZIA CAPPUCINO

← CHOCOLAT

All martinis are 10.5 oz

Specialty Cocktails

← CAPRINHA

← AZIA GREEN TEA

← NICOLLET SLING

← GREEN SILK SOUR

← HELLO PUNCH

← EMPORER MOJITO

← MY THAI

← SHIPWRECK PUNCH

← PACIFIC ISLAND CELEBRATION

← HYPER- Absolut Mandarin with energy drink

← SERENITY- Stoli Raspberry with calm

← VIBRANT- Midori, Malibu, fresh lime and orange with immune

← LYCHEE-TINI- 3 Vodka and fresh Lychee

← CLARITY- 3 Vodka with mango juice and foucs

← SAKE COSMO- Sake, Couintreau, with a splash of cranberry

All singnature cocktails are 14.5 oz

Tap Beer

← CARLSBERG PILSNER

← NEW CASTLE

← ANCHOR STEAM

← AMSTEL LIGHT

← SUMMIT EPA

← SUMMIT SEASONAL

Bottled Beer

96

← SAM ADAMS LIGHT

← ASAHI

← FLYING DOG

← JAMES PAGE AMBER

← HEINEKEN

← SING TAO

← DOS EQUIS AMBER

← PILSNER URQUELL

← NEGRA MODELO

← CORONA

← CORONA LIGHT

← BELL'S PORTER

← MOOSE DROOL

← KRONENBURG

← STELLA ARTOIS

← MAREDSOUS

← GROLSCH

← KIRIN ICHIBAN

← SAPPORO

← TAJ MAHAL

← GUINESS

← DUVEL ALE

97

98

Contact Information

Azia Restaurant

Address/ Number:2550 Nicollet AveMinneapolis, MN 55404

Owner/Executive Chef: Thom PhamEmail: TPham@AziaRestaurant.comCell: 612-998-6958

Head Manager: Ryan Montgomery612-813-1200

Office Manager/Personal Assistant: Liz612- 813-1200

Office Number: (612) 813-1200

Location Hours:

Monday - Saturday: 11:00AM to 2:00AM

Sunday: 3:00PM to 2:00AM

99

Gantt Chart

Task Name Duration Start Finnish PredecessorResource Name

Rough Gantt 3 days 9/15/2008 8:00 9/17/2008 17:00Weekly Team Meeting - Milestone 1 day 9/17/2008 8:00 9/17/2008 17:00First Milestone and Gaffney Meeting 2 days 9/21/2008 8:00 9/22/2008 17:00 1

Weekly Team Meeting - Gantt 1 day 9/24/2008 8:00 9/24/2008 17:00

Final Gantt 1 day 9/29/2008 8:00 9/29/2008 17:00 1,2

Visit to Azia 1 day 9/30/2008 8:00 9/30/2008 17:00 3

Team Meeting: Presentation 1 day 10/1/2008 8:00 10/1/2008 17:00 4Weekly Team Meeting - Presentation 1 day 10/1/2008 8:00 10/1/2008 17:00

5 Minute Presentation 1 day 10/3/2008 8:00 10/3/2008 17:00 5

First Client Review Session 1 day 10/6/2008 8:00 10/6/2008 17:00 4I. Organization - Strategic Perspective 45 days 10/8/2008 8:00 12/4/2008 17:00 7 ChristineII. Firm's Structure and Behavior 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Tom,Joe

III. Operations 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Christine

IV. Assessment of Systems 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Evan

V. Financials 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Kayla

VI. Recommendations 45 days 10/8/2008 8:00 12/4/2008 17:00 7 Pat

VII. Appendix 45 days 10/8/2008 8:00 12/4/2008 17:00 7

Weekly Team Meeting - Hand Out Paper Parts 1 day 10/8/2008 8:00 10/8/2008 17:00Second Milestone and Gaffney Meeting 5 days 10/15/2008 8:00 10/20/2008 17:00 7

Weekly Team Meeting - Talk About Review Session 1 day 10/15/2008 8:00 10/15/2008 17:00

Second Client Review Session 1 day 10/22/2008 8:00 10/22/2008 17:00 7,15Weekly Team Meeting - Discuss Visit 1 day 10/22/2008 8:00 10/22/2008 17:00

Visit to Azia 1 day 10/24/2008 8:00 10/24/2008 17:00 16Weekly Team Meeting - Updates On Paper 1 day 10/29/2008 8:00 10/29/2008 17:00Weekly Team Meeting - Updates On Paper 1 day 11/5/2008 8:00 11/5/2008 17:00Weekly Team Meeting - Milestone Work 1 day 11/12/2008 8:00 11/12/2008 17:00Third Milestone and Gaffney Meeting 4 days 11/16/2008 8:00 11/19/2008 17:00 15Weekly Team Meeting - Updates On Paper 3 days 11/19/2008 8:00 11/21/2008 17:00Weekly Team Meeting - Updates On Paper 2 days 11/26/2008 8:00 11/27/2008 17:00Third and FinalClient Review Session 1 day 12/1/2008 8:00 12/1/2008 17:00 18

Azia Picture Visit 1 day 12/3/2008 8:00 12/3/2008 17:00 19Editor meeting - edit compile and print 3 days 12/3/2008 8:00 12/5/2008 17:00

Final Paper printed and binded 1 day 12/5/2008 8:00 12/5/2008 17:00 20

Final PowerPoint 1 day 12/7/2008 8:00 12/7/2008 17:00 21

Presentation Walkthrough 1 day 12/7/2008 8:00 12/7/2008 17:00 22

Presentation 1 day 12/8/2008 8:00 12/8/2008 17:00 23

100

101

Bibliography

Azia Restaurant- A unique dining experience. Retrieved December 1, 2008, from Azia

Restuarant Web site: http://www.aziarestaurant.com/

Pham, Thom. Personal INTERVIEW. 30 September 2008.

Pham, Thom. Personal INTERVIEW. 24 October 2008.

102