OPERATIONS MANAGEMENTGROUP #6

AMANDA B OSC HDYLAN MIC H

MARIANA SANCHEZWI LLI AM SKINNER

La CantinaAuthentic Mexican Cuisine on the Mainline

La Cantina’s Story

The proposal to open up La Cantina restaurant originated from four Villanova students who dreamed of having an affordable authentic Mexican restaurant close to school.

All four students traveled to Mexico during Fall Break with the purpose of familiarizing themselves with the Mexican culture and cuisine.

The name “cantina” is Spanish for a bar where they also serve appetizers.

Mission Statement

La Cantina will deliver authentic Mexican food at a low price for the local college student population and neighboring community. La

Cantina’s fusion of Mexican cuisine and culture will be a unique and satisfying experience for

the consumer.

REGION COMPETITION

Bryn MawrWayneArdmore

Environmental Scanning

Target Markets

18-24 year old college students

Living both on and off campus 13,500 combined enrollment with average tuition of $51,000

35-54 year old married adults Along the mainline High disposable income Average household size greater than two

Needs Assessment

College student needs Cost, convenience and flavor More late night dining options

Adults/Families needs Quality, value and a unique friendly atmosphere.

Order Winners: High quality ingredients and authentic food Cater to the nightlife college crowd (time flexible)

Quality

Late nigh

t

Core Competencies

Efficient Services High customer interaction Pay when you order/pick up when it’s ready Pick up Delivery (late night)

Low Priced Menu Low cost operations = low prices $18 maximum food, $30 maximum drinks Discounts for late night ordersConvenient location Cleanliness Safe area

Competitive Priorities

Affordable price

Authentic quality

Flexibility

Consumer Dining Experience

Customer goes up to register

Customer places order and pays

Customer may order a drink at the bar or sit down in a table

When food is ready customer picks order up and enjoys!

During this process the

manager continually oversees

operations

Food Suppliers

US Foods“First in Food” A leading food distributor and one of the

largest private companies in the USOffer more than 350,000 national brand products In Allentown, PA (~52 miles away)Sysco PhiladelphiaSysco serves approximately 400,000 customers across

the USQuality Assurance TeamBusiness Resources Center In Philadelphia (~18 miles away)

Beverage Suppliers

Allied Beverage GroupOne of the largest wholesale distributors of wine and

spirits in the USProvide all of our Mexican oriented drinks (i.e. Corona,

Dos Equis, Patrón) In Mt. Laurel, NJ (~25 miles away)Coca Cola Refreshments PhiladelphiaBrand nameA wide variety of Coke productsLow cost In Philadelphia (~18 miles away)

Menu Options

Appetizers Guac and chips Spicy Ceviche Cantina Nachos• Salads Frontera Salad• Burritos• Fajitas• Tacos

Desserts Churros Flan Tres Leches cake

• Drinks Margaritas (original, strawberry,

passion fruit, blue curacao) Beers Dos equis Corona

Periodic Review System

Weekly review system All purchased foods Matches our weekly food delivery shipments Easily reach our target inventory level

Inventory that is most prone to spoilage (i.e. meat, fish, & dairy) will be reviewed nightly

Lean System of Quality Control

Sort Straighten Shine Standard

ize Sustain

Lean System of Quality Control

La Cantina’s Employee Training Program in Mexico will curtail the following wastes: Inappropriate Processing: Learn Mexican culinary

technics when preparing dishes Defects: The training will minimize mistakes made Underutilizing Employees: The time , effort and

money spent our chefs with this program shows that La Cantina is committed to promoting our workers

Elimination of Servers Restrains pilferage Reduces wait times

Statistical Control Charts

X-bar charts: to measure time metrics Food Preparation Delivery Times

P-charts: to measure the proportion of errors Quality of deliveries Food quality

Weekly Demand Forecast

We estimate that our demand will be an average of 80 customers per day from Sundays through Wednesdays and will increase significantly from Thursdays to Saturdays.

On school breaks we expect a lower demand from college students but higher from adults with families

Holidays: Cinco de Mayo!

Demand Management

Forecast based on estimates:

Licensing & Fees

Permit for Signs $40Inspection Fees $350PA Retail Food Facility $241Radnor Township Food Fee

$100Limited Liability Limited Part. $125Insurance

$6,000Filling Fee $700Trademark $50Liquor License $500

Total: $205,006

Security Deposit $6,000

Building Updates $100,000

Marketing Materials $1,000

3 Ovens $3,600

3 Grills $6,000

Fryer $800

Walk-in Cooler $5,000

Freezer $2,000

Prep Station $800

Hot Holding $500

Hood System $7,200

Ordering Payment System $20,000

Utensils/Kitchen Equipment $30,000

Signs $1,500

Marketing $16,000

Menus $1,500

Tables/Furniture $40,000

Start-up Costs

Monthly Expenses

Monthly ExpensesCOGS Est. 40% of

SalesRent $6,000Chef $3,750Manager $3,333Manager $3,333Employees $4,800Employment Insurance

$3,973

General Insurance $416Water $1,500Gas $5,500Website $8

Menu

Conclusion

La Cantina will answer the lack of an authentic and low cost Mexican restaurant ; we will be an order winner: Authenticity- Chef Training Program in Mexico Delivery Service Late Hours Unique ordering system Low cost Appeal to both college students and neighboring

communities