Moe’s Southwest Grill

Company AnalysisLARMS Consulting

LARMS Consulting Group

Robert Schaefer – Market Analyst

Laura Grigoriew – Value Chain Specialist

Annmarie Collina – Value Chain Specialist

Megan Falcone – Opportunity Specialist

Sania Cekic – Alternative Strategy Specialist

Overview

• Company Profile

• Process

1

• Value Chain Support

• Value Chain Primary

2• Proble

ms Identified

• Solutions

3

Section One- Company Profile & Experience

Company Profile

Made to order Southwestern cuisine

Founded 2000 in Atlanta, Georgia

Franchised under Focus Brands

Over 550 locations across US, two international

Quickly Growing “Fast Casual” segment

The very first Moe’s Location

Company Profile

Strong brand culture- Friendly relaxed atmosphere

- “Welcome to Moe’s! ® ”

Guiding Values- Act with Integrity, Add Value, Infuse Passion,Provide Leadership, Be Yourself, Give Back, HaveFun, Etc…

Fun and modern environment

The Experience

Consumer Savvy- Healthy- Responsible

Pop Culture Menu- Wrong Doug (The Hangover)- Julia Gulia (The Wedding Singer)- Earmuffs (Oldschool)- Who is Kaiser (The Usual Suspects)

Dead Rocker Décor- Pop Art of deceased musicians- Hand selected playlist paying homage Fun and modern

environment

The Experience

Section Two- Value Chain Analysis

Firm Infrastructure

Owner (Mia)

Manager (Willy)- Line Workers- Back of the House

Human Resources

Compensation - Minimum Wage

Training - Minimal training

- “Thrown in”

Hiring- Word of mouth

- No recruitment efforts

Tech and Development

Various tech features available to enhance efficiency and customer experience

- Interactive Coke machine- iPad at checkout- Automatic change dispenser- Moe’s App

Procurement

Shipments scheduled- Twice per week

- Extra raw materials kept on hand

Inbound Logistics

Receive shipments twice a week

Do not store a lot of product

Use ingredients as soon as they come in to guarantee freshness

Operations

Made to order food

Estimate how much is needed to avoid excess inventory

Back of the house- One chef

Front of the house- Line, generally 4 employees

One manager on duty

Outbound Logistics

Dine in, take out, delivery, and catering

Provide quality food and fast services

Variety of options for customers- Over 20 different fresh ingredients

Marketing and Sales

Community outreach- Student discounts

- Cater local school lunches

In-kind contributions- On campus events

Free meal after 10 meals- Kids eat free on Tuesday nights

Sales- in-store purchases, catering jobs, online ordering system

Service

Offer catering, delivery, and online orders

Very friendly- Greet customers

Address customer issues to keep them satisfied

Up to date with current franchise standards- Menu changes

Offer survey to get customer feedback- Incentive if you complete the survey, get free queso

Section Three- Problem Identification & Solutions

Problems Identified

1. Finding reliable employees

2. Keep items fresh

3. How to deal with franchise rules and the owner

4. Implementing technology and development

Problems Identified1. Finding Reliable Employees

• U.S. citizens

• Driving

• Employees coming in late

• Speaking English

• Quick learners

Problems Identified2. Keep Items Fresh

• Come in 7:00 a.m. open at 10:30 a.m. to prepare the food for the day

• Throw away a lot of leftover food

- Chips and salsa

• “Hours of life” for food - Guacamole, sour cream and pico de gallo

Problems Identified3. Management – Franchise vs. Local

• Keeping everything unified

• Owner relays information to manager- then to the rest of the employees

• Owner becomes the “bad guy” because there is only one and he has to sometimes go against the owner

• Not much room for local or individual growth considering the region

Problems Identified4. Implementing Technology and Development

• Not enough utilization of technology in customer service

• More room for the usage of technology

Solutions1. Finding Reliable Employees

• “Efficiency wage”- Standardized hiring practices, in depth training, incentive through the form of efficiency wage. - They have more disposable income- Starbucks and Zappos aren’t prestigious jobs however they treat their employees well and they don’t feel as if they are working a low paying menial jobs

Solutions2. Keep Items Fresh

• More frequent deliveries and intuitive software that keeps track of inventory and forecasts required inventory

- Less work for them to keep the food fresh

Solutions3. Management – Franchise vs. Local

• Balance between franchise regulations and micro cultural norms

- There should be more than one manager to differentiate between the franchise and the local needs of the business

- Less pressure on one manager it is distributed between the two managers - balance

Solutions4. Implementing Technology and Development

• Creating more awareness of technology- They will implement the technology and use more advertising

- iPad, rewards program, catering, delivery

- Easier and will attract more people towards Moe’s

Solutions Cost

• POS System – One time cost of $5,500

• More frequent deliveries • $25,000 annually

• Efficiency wage • $35,000 annually

Total Cost of Improvement Implementation: Initial $65,500; $35,00 per year recurring

Recap

• Company Profile

• Process

1

• Value Chain Support

• Value Chain Primary

2• Proble

ms Identified

• Solutions

3

Questions?