PN! OUR PRODUCT Our delicious, highly customizable pizzas are : • Made-to-Order: customers choose exactly what sauces, cheeses, and toppings they want, and in what quantities • Weigh-and-Pay: after all of the toppings are added, the pizza is weighed to determine the final price PN! OUR MISSION: We pledge to provide personalized pizza pronto! At Pizza Now! the customer is the head chef, and our qualified employees are trained to prepare highquality, reasonably-priced and ready-to-eat pizza for local college communities along the Main Line. PN! CORPORATE STRATEGY Fast food pizza is a catch-all product that appeals to the diverse subgroups of the “Main Line” Lower-middle class neighborhoods 4 “driving” colleges and numerous grammar and high schools Affluent suburbs PN! CORE COMPETENCIES Customer empowerment High level of customization and client-centric culture Novelty “Weigh-and-pay” pizza Added dimension to the dining experience Quality ingredients Highly trained employees Core functions that reflect our mission PN! MARKET ANALYSIS The primary target market for Pizza Now is undergraduate and graduate students, ages 18-25. School Size Tuition • Four Colleges in the proposed Bryn Mawr 1,300 $56,730 geographic area with over Haverford 1,198 $59,446 15,000 total students Rosemont 903 $39,950 Villanova 10,626 $55,670 The secondary target market is comprised of the local resident along Lancaster Avenue, the area typically referred to as the “Mainline.” • The average annual household income in this area is $144,500 PN! COMPETITIVE PRIORITIES • Cost: reasonable gourmet fast; food prices minimum $6 flat rate plus $0.50 per ounce of added toppings • Quality: consistent quality • Time: quick lead time; order numbers given to combat queuing • Flexibility: unmatched variety and customization PN! PN! Create Your Own! Step 1: Choose your Crust Step 2: Throw Down Sauce -Tomato -Marina -Olive Oil -Creamy Caesar -Alfredo -Vegan White -Traditional -Whole Wheat -Flat Bread -Deep Dish -Gluten-Free Step 3: Spice it Up with Toppings -Cheese: Mozzarella, Cheddar, Parmesean, Jack, Swiss, American, Blue Provolone, Nacho, Asiago -Meats: Pepperoni, Sausage, Beef, Chicken: grilled or cutlet, Ham, Meatballs -Veggies: Lettuce, Spinach, Hot Peppers, Roasted Red Peppers, Cucumbers, Carrots, Broccoli, Celery, Zucchini, Tomato, Squash, Eggplant ALL COOKED TO PERFECTION! OPERATIONS STRATEGY • Line Process: dough sauce cheese toppings weigh station • Assemble-to-order • High customer involvement • Hybrid office classification on the customer-contact matrix • Low resource flexibility, low capital intensity, moderate capacity to adjust to demand PN! INPUTS FROM SUPPLIERS PizzaNow! Fresh Ingredients • Need suppliers that can handle the variety and dynamic needs of our stores • Dough, vegetables, meats, cheeses, toppings, sauces and beverages Utensils • Utensils and other auxiliary food service products such as forks, knives, napkins, cups, and straws • Must be delivered in a timely and specific fashion PN! EQUIPMENT AND TOOLS • Large counter space • Refrigerator • Sanitation materials • Flash ovens • Grill for toppings PN! SUPPLIER SELECTION • Reputation for quality control and fresh products • Proven track record of delivering top quality products on schedule and at a low cost • Offers organic products PN! QUALITY STRATEGY • Rigorous acceptance sampling for all procured raw materials • Lean Quality Strategy • Employee training to reduce time and material waste • Streamlined movements at assembly line, speaking points • Six Sigma strategy for inventory control • Meticulous documentation by employees at day’s end • DMAIC approach strives for perfect order amount • Standardized ordering process (i.e. repeating orders back to customers) PN! SUPPLY CHAIN INVENTORY MANAGEMENT • Suppliers • Sysco, an established player in the food industry • Independent local farms: • Cayuga Pure Organics, Lancaster Farm Fresh Coop and Sweet Stem Farm • Continuous Review • Accounts for perishability Continuous Review System characteristics demand / time Ordering and setup cost (S) Holding Cost (H) EOQ Lead Time (L) Stdev of demand per unit of time expected demand during lead time Stdev of lead time stdev of demand during lead time Cycle-service level 70 $20 $5.00 409.8780 2 10 140 0 14.1421 95% lot size (Q) safely stock (SS) reorder point (ROP) 50.00 190.0000 Expected Annual Cost $2,299.39 PN! DEMAND MANAGEMENT Pizza Slices Per Year Per Person Target Population Total Pizza Demand 46 25,000 1,150,000 slices Market Share Number of Slices Per Week Number of Slices Per Day 9% 1990.384615 284 Customers Per Week Monday 125 Tuesday 130 Wednesday 150 Thursday 200 Friday 250 Saturday 300 Sunday 250 • Projected customers per week: 1,405 • Initial estimations derived from market research and the judgment of management • Once the business is up and running, we plan to employ more sophisticated forecasting techniques PN! Thanks! ANY QUESTIONS?