Ivy Chong is a passionate chef; and a fitness freak. She is a strong believer of healthy eating. And this conviction led her to set up an interesting sandwich and salad caf concept in the year 2012. She named it Healthylicious Caf. Her first venture was a hit among many individuals, especially millennials that were health-conscious. Situated at the main business district in downtown Kuala Lumpur, this caf became the talk of the town! As a result, many of her customers have had to wait in long queues before being assigned a table to dine-in.

Her number of loyal customers just kept growing and they arrived from many parts of the city. Five years ago (2017), Ivy decided to open up her second outlet (which is much bigger than the first one) at a leading mall some ten kilometers away from her first outlet. However, the response in this new outlet has not been encouraging. In the last five years, the numbers have never exceeded 40% of its capacity. Although living nearby the second outlet, many customers still prefer to drive all the way to the first outlet. Hence, the number of customers in the first outlet continues to grow.

Ivy is very puzzled. As an operations management (OM) expert, you need to solve her problem (there could be many underlying problems!). Using appropriate examples, suggest eight OM strategies(related to balancing demand and productive capacity)that she could embark on. Explain the benefits and drawbacks of each suggestion.