Help Wanted! A facelift of The Fresh Works, a Small Business Company Authors: Michael Mulin Matthew Smierciak Bill Woods ABSTRACT: This study explores a small business, the Works, and the necessary changes needed to be made to help improve the company’s profit. It’s not the food and service that needs improvement, rather the physical appearance of the Works and technological updates. Various research methods, including, a customer survey, question and answer session, on site observation SWOT analysis, and a literature review of past studies similar to this, have guided the marketing group to make conclusions on what needs to be changed, improved on, and kept the same. The Works has been successful in the past, and still maintains a good business, however with the suggestions and improvements made, the Works could be even more successful than ever. KEYWORDS: Small Business, Online Ordering, Facebook, Internet, and Appearance 1 Introduction An investigation and discussion will be performed on The Fresh Works of Delran, a steak and hoagie shop with many opportunities to grow as a small business. In business since 1996, The Works once dominated the small steak and hoagie market of Delran, Cinnaminson, Moorestown, and Riverside. However, in the past five years, many other food businesses including Pat’s Pizza, Papa John’s, Mike’s Pizza, Chili’s, Primo’s Hoagies, Pizza Hut, and Salad Works have started moving into this area and tremendously eaten into The Works profitability. The Works has taken a back seat in terms of business, technology, marketing, and just about every other aspect compared to these businesses. The main focus will be on improving the marketing of the business and helping The Works regain as many of their lost customers as possible, as well as helping them get up to date on their advertising techniques and introducing them to the technology that is available to make businesses run more smoothly. While conducting research on The Fresh Works proprietor Marty Taylor has been introduced to many new ideas. When first working with Marty he was open to just about any suggestion given to him. However, he became more reluctant and less flexible once realizing all the changes that needed to be made to make his business as successful as possible. Luckily the marketing plan provided persuaded him to be open to change and willing to trust the group research. Methods The methods of research used for this particular study were widespread. These included a survey which were taken by 37 random, onsite customers, several Q&A sessions with Marty and the employees, outside research, and an hour long site observation with photos taken, as well as a member of the research group working in the shop for six years. The group also observed these other small businesses around The Works to try to investigate what methods of marketing and technology they were using. This allowed us to recommend to Marty, which to marketing methods to implement and which to avoid based on what was believed to be effective or ineffective. Another important research method utilized was the investigation on small businesses, and other studies done on businesses and their incorporation of the Internet and technologies into their business. According to McGibbon & Moutray (2009) , a Small business is any independent business that has fewer than 500 employees. Small business notes (2009) states that a small business represents 99.7% of all employer firms, employ half of private sector employees, and have generated 60 to 80% of net new jobs annually over the last decade. Small businesses are particularly crucial in an economic state like the United States. It is important for them to stay afloat so the entire economy stays afloat. Therefore, small businesses need to do everything they can to be as successful as possible. Not only does their business need it to survive but also the United States economy. Since the Internet has become such an easily accessible tool in household all over the world, it has drastically changed the way people live their lives. From keeping tack of finances, to meet new people, to playing various entertainment games, the Internet has stamped its affect on our society. One of the areas that has been most affected by the Internet are businesses. Businesses have also drastically changed the way they do business since the Internet became available as a tool. This pertains to the restaurant 2 business, and more specifically the Works. According to Brooks (2000), as the Internet moves from the fringes into the mainstream, the wave is lapping at the feet of foodservice. Electronic commerce is coming, and analysts restaurateurs who don’t catch the wave may find themselves swamped. The Works has not made much progress in this area even ten years later, with only having a website that is not updated consistently. Other restaurants have caught onto the Internet wave and have had much success. Many food service companies have had the most success with utilizing the Internet for online ordering. Papa John's started this system, and as a result , had much success and other companies following their ways. According to Yakubovich (2007) research on Papa John's, their introduction to online ordering allowed for a 50% annual growth rate in customers, 75% of these customers return to online ordering because of how satisfied they are with the process, comprising of a total of 20% of all orders. Yakubovich also states that two characteristics are needed for a successful online ordering restaurant or food service company. One is location, which should be an area where people have easy access to high speed internet connection, and second is if 15% or more of a restaurant's revenue is takeout or delivery orders, then online ordering can be one of the most effective methods to boost business. The Works qualifies in both of these characteristics. To make this a successful process though , Line Busting (2006), states that ordering food should not be like ordering DVDs. it should be a more sensory, personal experience that should be recreated online. Since more and more foodservice companies are offering online ordering, a new company must make sure that their online ordering process stands out in a positive way that is simple and easy for customers to order food. A new process like this may seem overwhelming for the Works, and at times difficult to learn at first. But looking at how past companies have set up their online ordering process makes it an easier process and adjustment into the online world. Scarpa (2007), claims that online ordering can be started off as simple as having online orders print out in the kitchen no differently then if an employee took a call from a customer or an in person order. Scarpa then explains a more complex method once a food service company has become more experienced with online ordering. A more sophisticated model is the web based network that integrates with the point-of-sale, POS. Results After a quick look at the Fresh Works on the first day, it became apparent the business was long overdue for huge improvements. The group decided that it would be best to begin by conducting a SWOT(Strengths, Weaknesses, Opportunities, Threats) analysis. A SWOT analysis is a marketing technique that examines the advantages and disadvantages that a company possesses both internally and externally. Below is a look at some of the aspects of the SWOT conducted early in the project which led to further research: Strengths: Excellent reputation with a very good local following Highly regarded for fresh cooked rolls baked on premises daily Have won numerous awards for best cheese steaks in Burlington County Daily lunch specials brings in a large amount of business from other local businesses (doctor’s offices, office buildings, etc.) 3 Association with the original franchise Steak & Hoagie Works Offer party platters/catering Weaknesses: Need a new outdoor sign Store needs renovation Outdated website No online ordering to keep up with larger franchises Not active on any social networking sites IT is non-existent Small advertising budget Do not mail menus Outdated menus Do not offer pizza Opportunities: Get website updated and get active on popular networking websites, especially Facebook. Build on customer loyalty and brand recognition Update menus and send menus out in the mail Start to offer pizza Sell sandwiches that are comparable to $5 foot longs and will compete with other franchises selling them. Located on a major highway (Rt. 130) Threats: Franchises selling $5 foot longs Competition is fierce and many other franchises are within walking distance 130 Diner- 1.5 miles away McDonald’s-1.5 miles away Mike’s Pizza- 1.25 miles away Papa John’s-100 yards away Pat’s Pizza-.25 mile away Pizza Hut-2 miles away Primo’s Hoagies-125 yards away Taco Bell-1 mile away Throwbacks Bar and Grill .25 miles away Salad Works-2 miles away 4 Figure 1. Financial situation of the country Tough location within the shopping center(located in corner) For additional research a voluntary survey was put in the shop which was completed by 37 customers. The purpose was to further our understanding and help to confirm a few of the suggestions given to Marty earlier in the process. On the next page are the questions we asked and results we received: 5 The Fresh Works of Delran Customer Survey We would appreciate your input. Thank you. 1. How do you view/receive our menu? 2. Do you notice our sign out front? 3. Do you think we need a bigger sign? 6 4. Are you a member of Facebook? 5. If so, have you seen our Facebook page? 6. Do you visit our website? 7 7. If so, do you think it needs improving? 8. Do you have any suggestions on how we could improve in any way? Answers ranged from The Works is very difficult to find in the phone book or by calling 4-1-1 because people do not know which name to use since the store has gone by several different names, starting out as “Steak & Hoagie Works”, then moving to “The Fresh Works” and on to “The Fresh Works of Delran” while also being referred to as simply “The Works”. 8 As mentioned in the SWOT analysis and the customer survey above, the store is in need of improvements to its appearance as well. While observing in the store, the group suggested new countertops, a new outdoor sign, new tile floor in the sitting area and perhaps some more comfortable chairs for the customers. All of the afore-mentioned are the original from when Marty opened the shop in 1996 and are very worn, especially in comparison to the other stores observed. Below are a few pictures of the shop including the outdoor sign: Outdoor sign along Rt. 130 Location of the store within the shopping center and other outdoor sign 9 In addition to the appearance of the shop, it was found that the use of technology is significantly lacking. Everything in the store is done by hand, including taking orders, taking inventory and payroll. There is no use of computers which contributes to the fact that the store is not active on any social networking sites and cannot even update its own website, which is outdated and not user friendly. Seen below are two screen shots of the website. The first is the home page and the second is what happens when the user clicks to see the menu. Home Page of The Fresh Works website If the computer attempting to view the menu does not have an up do date version of Adobe Reader they cannot view the menu 10 Analysis After reviewing the research from the various methods conducted, Marty needs to focus on two different aspects of this business for changing, physical appearance and update from a by hand business to a computer based business. It was made clear form the survey that unless the customer already exists, it is very hard to see where The Works is located due to the extremely small, dull store sign. It was also made clear through the SWOT analysis that the inside of the store needs to be improved. It has been the same for 14 years and should be updated to help improve the store’s physical appearance. Being more computer and Internet friendly is also something that must be updated. Many consumers do not even know about the website, this could be due to the fact that the website needs maintenance itself. Also many people are on the social network, Facebook, where the Works is missing out on an advertising opportunity. Lastly there is no online ordering done through the website, which based on research, many other food businesses have started to implement and have had success with. Another finding and suggestion the group had while observing in the shop was to update the menus. The same menus have been getting used for several years now and perhaps need a small change. In addition, the group found that the menus were not being mailed but instead the only way the customers were getting menus was if it was attached to the bag for a delivery or if they asked for one when they came in to pick their food up. Discussion After thoroughly analyzing all of the data, our group has suggested some concrete changes for Marty and his small business. Some of the steps to these changes have taken place already. Marty has designed a new updated menu. Not only is he providing them in the store and stapled to delivered products, Marty also sent the menu out to the updated mailing list. Marty also now has a compute in his office. This is the first step taken to establish his entire company as computer based. Our group also created a business Facebook page for the Works. At this site other Facebook members can view the Works location, contact information, menus, special updates and even have an open discussion about their experiences at the works. This is an excellent marketing tool to use. It is free of charge and The Works also gets more recognition. Other changes that our group has concluded on involve the physical and online appearance of The Works. The sign is the first thing that needs investment in. Once there is a bigger brighter sign, cars from Route 130 who do not know the store exisit will now be made aware of it. This is an excellent way to attract new customers, especially the ones who decide last minute to try the Works since the sign is visible from hundreds of yards away. Other physical appearances that need improvements is the dining area in The Works. The Works is not very big, however instead of having the same tables and chairs from 1996, our group suggest installing dining booths. Not only are there more comfortable, but the booths will attract more people to eat in at the store, and will enhance the over all look in the store. As far as online changes go, the Website needs to be updated consistently and more user friendly. Once Marty has installed the Works business onto a computer system, online ordering is absolutely vital. People like using the web and the do-it-yourself approach. This will also bring in many more orders. The last computer system needed is a POS system in the store. Not only does this benefit the employees, the POS system also tracks all inventories and sales. This computer system 11 allows for quicker service and more sales. Marty has made some improvements to his store already, and continues to make positive strides leading to an improved more successful business. Many of these improvements will not happen over night, but there is a concrete marketing plan to guide Marty through the entire process. The Works is a highly respectable establishment. Not every small business can win county awards and be known for their great food and service. The Works just has fallen behind on physical appearance and technological advancements. Once these changes have taken place, The Works is sure to reestablish itself in the community and be more successful than ever. 12 Work Cited Page (2006). Line-Busting, Internet Style. Restaurant Hospitality, 90(2), 1. Retrieved from Business Source Premier database. Brooks, S. (2000). A Mouse By The Tail. Restaurant Business, 99(1), 50. Retrieved from Business Source Premier database McGibbon, S, & Moutray, Carly. US Department of Small Business Administration, Office of Advocay. (2009). The small business economy, a letter to the president Washington DC: Government Printing Office. Retrieved from http://www.sba.gov/advo/research/sb_econ2009.pdf Scarpa, J. (2007). Web ordering gets more functionality, use among operators. Nation's Restaurant News, 41(10), 44. Retrieved from Business Source Premier database Small business notes. (2009). Retrieved from http://www.smallbusinessnotes.com/aboutsb/sbfacts/sbimportance.html Yakubovich, A. (2007). Online Ordering: A Cheat Sheet for Restaurateurs. Franchising World, 39(2), 78-80. Retrieved from Business Source Premier database 13