Scott Mooney, Alejandro Arroyo, Melissa Sanders, Julia Eklund & Elizabeth May

Agenda

Mission Statement Organization Strategy Market Analysis Competitive Priorities Operation Strategy Process Choice Quality Strategy & Control Supply Chain Selection Demand Management Costs Inventory Management Questions?

Mission Statement

“To offer unique, dynamic combinations of food to your average college student in a light hearted environment when you really want it!”

Menu

Organization Strategy

Environmental Scanning College students Upper class

Core Competencies Lighthearted & hip environment Ideal hours

Core Processes New Service/ Product Development Process Customer Relationship Process

Market Analysis

Market Segment

Target Market-male and female college students aged 18-24

Needs assessment Location/ Hours

Order Winners fun and unique atmosphere the unique combinations of food

Competitive Priorities

Unique menu selection with a variety of options

Quality & good tasting food

Fast service

Long hours of operation

Operations Strategy

Order Fulfillment Make-to-Order

Inventory Strategy Types of Inventory: Ingredients & Supplies

Ingredients: Lot size = 1 week’s inventory Safety Stock = 2 day’s inventory

Supplies: Lot Size = 1 week’s inventory Safety Stock = 1 week’s inventory

Inputs

Ingredients: Pork shoulder Brisket Hot dogs Pasta Potatoes Tortilla chips Onions Flour Eggs Sugar Spices

Supplies: PlatesNapkinsCupsUtensils

Equipment

Commercial fryer Steam tables Commercial oven Commercial char broiler Commercial sink Refrigerator & freezer Dishwasher Soft Drink Machine Mini-Fridge Cash Register & Credit/Debit card swipe

Process Choice- Job Shop

Customer involvement= HIGH

Resource Flexibility Products= HIGH Employees= MODERATE

Capital intensity=LOW

Quality Strategy – Total Quality Management

Continuous Improvement Continuous Quality

Improvement Initiative (CQI)

Customer Satisfaction

Continuous Quality Improvement

Structure – Assets the Establishment Possesses Process – Activities/Tasks Output – Immediate End-Product Outcome – End Result and Customer Satisfaction

Quality Controls - Inputs

Supplier Quality Reliability Local

Employee Training Ordering/Receiving Cooking Identifying & Eliminating Waste

HACCP Program – Food Safety

Quality Controls - Outputs

CQI Initiative and Customer Satisfaction Conformance to Specifications – Consistent

Quality Value – Efficient Processes yield Low Costs Fitness for Use – Unique Dishes, Late Hours Support – Customer Support Psychological Impressions – Atmosphere &

Experience Restaurant Quality – Customer Experience Employee Training

Supplier Selection

Competency Capacity Commitment Control Cash Cost Consistency Culture Clean Communication

Demand Management

Monday Tuesday Wednesday Thursday Friday Saturday Sunday0

50100150200250300

Weekly Customers

Total Customers

0 5 10 15 20 25 30 35 400

2

4

6

8

10

12

Forecasting

Trend progression

Months

Dem

and

Demand Management

Queue Management

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R-bar

Start up Costs & Fixed Costs

Item Price per Amount Needed Total Amount Paid at StartRefridgerators $2,694.24 2 $5,388.48Freezer $5,000.00 1 $5,000.00Dining Furniture $275.00 4 $1,100.00Logo Sign $551.48 2 $1,102.96Main Menu Board $350.00 1 $350.00Sink $100 3 $300.00Cash register $175 1 $175.00Credit card Machine $120 1 $120.00Soda Machine $1,275 1 $1,275.00Stove & Oven $3,800 1 $3,800.00Dish Washer $4,000 1 $4,000.00Commercial Char brolier $847 1 $847.00Commercial Fryer $840 1 $839.50Small Refigerator $1,500 1 $1,500.00TOTAL START UP COSTS $25,797.94

Item Amount Needed Total Amount for YearRent 2,200.00$ 26,400.00$ Wages 3,584.00$ 43,008.00$ Taxes 200.00$ 2,400.00$ Utilities 750.00$ 9,000.00$ Insurance 500.00$ 6,000.00$ Supplies 300.00$ 3,600.00$ TOTAL FIXED ANNUAL COSTS 90,408.00$

Variable Costs

Product Cost Per Unit PricePulled Pork Pancakes $3.15 $6.50

Brisket Cheesesteak $4.10 $8.50

Macaroni & Cheese $2.34 $4.50

Hot Dogs $1.94 $4.00

Pretzels $2.03 $4.00

Fries $1.92 $4.00

Nachos $4.22 $8.50

Onion Rings $3.05 $6.00

Tater Tots $2.11 $4.50

Inventory Management

Periodic System Cut costs Establishes a routine

Orders placed on WednesdayTwo Day Safety Stock

Pulled Pork Pancakes 9Brisket Cheesesteak 11Special Shack Weiner 10Mac N' Queso 55Pretzels (Crazy Cinnamon) 43Pretzels (Plain) 11Pretzels (Salted) 14Fries (Regular) 20Fries (Sweet Potato) 20Fries (Parmesian) 12Nachos 12Onion Rings 41Tater Tots 12

Questions??