Italian Oven:‘Expanding the Consumer Base’

Submitted by:Joseph Giarmo

March 4, 2009

Execution of the Consulting Service Project

PEST-C

SWOT/LCVP

Opportunities

RecommendationsBudget

Evaluation

Executive Summary

PEST-C: Political/Legal

• The Fair Labor Standards Act• The Labeling Education and Nutrition Act• The Employee Free Choice Act• The Safe Food Enforcement, Assessment,

Standards, and Targeting Act of 2008• Ignition Interlock Laws• Immigration Reform Laws

PEST-C: Economic

• Industry overview & trends

• Market size & trends

• The effects of the recession

– Industry demand

– Industry revenue

PEST-C: Socio/Cultural

• Trends in consumer demographics

• Consumer behavior

• Consumer motivation

• Casual dining industry trends

PEST-C: Technological

• Data security• Foodservice equipment purchasing• Technology in the restaurant– Wireless headsets– “Pay-at-Table” terminals– E-learning/E-training– Gather customer feedback– Online order/registration– Beverage management technology

PEST-C: Competitive

• Trends in casual dining competition– Menu innovation– Carryout/takeout service– Price competition initiatives

• Competitors identified– Applebee’s Neighborhood Grill and Bar– Ruby Tuesday Restaurant– Red Lobster Seafood Restaurant

SWOT/LCVP

Vulnerability

Constraint ProblemWeakness

Strength

Opportunity Threat

SWOT

•Specialty Italian Cuisine Location•Brand Equity Customer ServiceStrength•Lack of Marketing Price•No Full-Service Bar WebsiteWeakness

•Develop Diversity of Food•Become “Economically Friendly” Opportunity

•Economy•Cheaper Restaurant AlternativesThreat

LCVP

•Brand recognition as Italian restaurant•Ability to provide the “total” value offerLeverage•Limited restaurant appeal to certain market segments•Inability to create value

Constraint•Price vulnerable•Vulnerable in trying to maximize sales profits for fiscal year

Vulnerability

•Losing market share in the future•Restaurant lacks appeal to certain market segmentsProblem

Opportunities

•New Flavors Menu Customization•Combination Meals Healthy CuisineMenu Innovation

•Curbside Service•Innovative PackagingTakeout Service

•All-You-Can-Eat Combination Meals•Smaller Portions Value-Driven

Price Competition Initiatives

•Interactive Websites•Online Ordering

Online Restaurant Technologies

Recommendations

Redefine the Italian Oven Brand

Redesign Italian

Oven Logo

Redesign Italian Oven

Website

Redesign Italian Oven Menu

Implementation: In order to redefine the brand, our recommendation is to utilize the talents of Central Michigan University art students through the senior capstone course ART 472.

Recommendations

Create Value for Customers

Create Menu

Combos

Implement Late Night Specials

Offer Portion

Varieties

Specific Nights for

Value Offerings

Implementation: In order to create value for customers, our recommendation is to re-evaluate the Italian Oven menu and consider creating and introducing the above mentioned menu items.

Recommendations

Implement a Fully Functional Take-out Service

Assign Take-out Waitstaff

Purchase Hand-held

Pay Terminals

Promote Take-out Service

Implementation: In order to implement a fully functional take-out service, our recommendation is to restructure the current take-out operations to include the above mentioned features.

Budget

• Redefine the Italian Oven brand

• Create value for customers

• Implement a fully functional take-out service

– Please refer to page 68 in the report for a full budget breakdown

Evaluation

•Qualitative Customer Surveys•Website Visits

Redefine the Italian Oven Brand

•Sales Numbers•Guest Counts

Create Value for Customers

•Sales NumbersImplement a Fully functional Take-

out Service

Q&A