MA
SHACK
Morrin Carlin, Griffin Coakley, Brendan Dwyer,
Hannah McCarty, Lawrence Sang
Mission Statement
• Mac Shack aims to serve delicious and creative macaroni and
cheese dishes with a number of variations to meet the
numerous preferences of our customers.
• Mac Shack will focus on convenience and affordability, as
service will be quick and easy, and prices will be low in
comparison to our competitors.
• Our restaurant will exhibit a warm atmosphere that brings to
life the home-style cooking of our dishes.
• Our goals are to be profitable, achieve reasonable growth, and
become a local favorite as a niche restaurant.
Corporate Strategy
S
W
Very little reputation  may be
difficult to get customers right
away
 No guaranteed cash flow from
operations
 Can be replaced by another niche
restaurant
 Popular food for college students
 Convenient and affordable
 Strong customer service
O
T
 Revenue can grow quickly
 Potential for large profit margins
 Can create variety of dishes
 Opening of other mac and cheese
restaurants or other late night
dining
Competition
• Late night dining options that target college students
– Campus Corner, Winger’s, Domino’s
• Establishments that serve a niche food item
– PB&U, Peace A Pizza, Meltdown
Market Analysis
Population = 31,531
Number of Students =
24,000
8 Colleges and
Universities
Target Market
Greg
• 21 year old senior at
Villanova
• Lives off campus
• Works part time
• Involved in campus activities
• Goes out with friends at
night to Main Line bars
• Usually orders a snack with
her friends when he gets
home
Amanda
• 25 year old Bryn Mawr
College graduate
• Marketing consultant living
and working in Wayne
• Does not have large budget
after paying rent, loans, and
bills
• Gets an hour off for lunch
• Ideal lunch destination is
close, offers quick service,
fairly inexpensive
Competitive Priorities
• Low Cost Operations
– Efficient cooking processes
– Scraps allocated appropriately
– Negotiate costs with suppliers
• Consistent & High Quality
– Well trained employees to maintain the Mac Shack Experience
– Modern yet chic atmosphere
– High quality ingredients
• Customization
– “Craft Your Own Mac” menu option
• Development Speed
– December’s “Mac Creation”
• Volume Flexibility
– Cognizant of our target market’s schedules to better anticipate demand fluctuations
Core Competencies and
Processes
• Skilled Workforce
– Well trained in all front line operations including serving the food, working the
register, and waiting on customers
• Quick and Consistent Delivery
– Processing orders as efficiently as possible
Menu Selection
Quality Strategy &
Control
• Strategy
– Customer satisfaction
– Minimization of defects
– Lean System
 Avoiding overproduction
 Appropriate inventory levels
 Effective utilization of employees
 Culture of continuous improvement
• Control
– Input Quality
 Careful selection of suppliers
– Goods & Services Quality
 Clean and organized work space/equipment
 Control Charts
C-Chart for Daily
Complaints
14
12
Number of Complaints
10
8
Daily Complaints
LCL
UCL
6
Nominal Line
4
2
0
0
1
2
3
4
Days
5
6
7
8
Supply Chain Inventory
Management
• Main Suppliers:
American Italian Pasta Company
Coca-Cola
Kraft Foods
Hanover Foods
• Continuous Review System
Variable Costs and
Profits
•
•
•
•
•
•
Cost of food products very low
Menu items fairly inexpensive
Weekly revenue = $812.85
Weekly variable cost = $105.18
Weekly profit = $707.67
Annual profit = $36,799
Fixed Costs
•
•
•
•
•
Maintenance = $5,000/yr
Marketing = $5,000/yr
Rent = $30,000/yr
Utilities = $4,500/yr
Wages
– Behind the counter employees (6) – 20 hrs/week, $9.50/hr
– Cooks (2) – 30 hrs/week, $11/hr
• Total weekly fixed costs = $1,375.77
• Total annual fixed costs = $71,540
Startup Costs
•
•
•
•
•
•
•
•
•
Kitchen equipment = $25,230
8 tables with 4 chairs each = $4,160
Construction costs = $15,000
Training = $5,000
POS system = $5,000
Marketing = $26,000
Starting inventory = $1,874.88
Other miscellaneous expenses = $1,368
Total startup costs = $83,632.88
Total First Year Profits
Projected Variable Profit
$36,799
Fixed Costs
$71,540
Operating Profit
Startup Costs
Total First Year Profits
-$34,741
$83,632.88
-$118,373.88
Conclusion
• Fills a void in the market
• Specialized product
• Expected growth will facilitate increase in profits
• Local favorite