Curt Clauss, Connor Fallon,
Jacqueline Froccaro, Chelsea
Strauser
Company Overview
• Mission: “making delicious, handmade Italian creations quick
and personal”
• Fast-casual dining experience featuring quick bake wood-fired
pizzas and personalized salads
• Focus on fresh, local ingredients
• Process
•
•
•
•
•
Pizza or salad
Ingredient decision
Wood-fired oven (3 minutes)
Payment
Pickup (Dine-In or Take-Out)
Environmental Scanning
Opportunities:
Strengths:
• Quick process
• Relationships with local farmers and
producers
• Personalization
• Ingredient flexibility during different seasons
• Healthy options
• Potential in expansion to products other than
pizza or salads
• Potential in collaboration with a larger variety
of local producers
• If successful, opportunity to open more than
one location
SWOT Analysis
Weaknesses:
• No delivery service
• Limited menu (only pizzas and salad)
• Menu based on what is in season - some popular
ingredients may not be available at certain times of
the year
• Wait time for pizza could become longer during busy
hours
Threats:
• Competitive environment (Jules Thin Crust,
Crust, Peace A Pizza, Domino's, Chipotle)
• Price competition
• Loss of buying power with suppliers in
comparison to larger competitors
Organization Strategy
• Core Processes
• The ability to provide the customer with the ingredients he or she
desires
• The production of an end product without a long wait
• Core Competencies
• Quality
• Highest quality ingredients
• Flexibility
• Ingredient options
• Time
• 3 Minutes for baking, plus line decision time
• Efficiency
• Cost
• Least control over cost
• Market price of ingredients
• To combat: relationships with suppliers
Market Analysis
• Market Segment
• Villanova Area (Wayne to Wynnewood)
• More than 100,000 people
• Target Market
• Educated adults in the Villanova area, ages 18-40
• Busy individuals who seek a high-quality meal
• Appreciate local ingredients and gourmet food
Competitive Priorities
• Must possess to satisfy internal and external
customers
• Provide a quality product that is easily
accessible at a fair price
• Differentiation in pizza market – optimizing
fast casual
• Fresh ingredients, unique options, interactive
experience
Products Offered
• Salad
• Pizza
• Dessert Pizza
• Select Beverages
Operations Strategy
• Processes Behind Products and Services
• Make-to-Order
• High customer contact
• Service Process
• Front-Office Customer-Contact
• Flexible work and resource flows
• Manufacturing Process
• Assemble-to-Order
Quality Strategy
• Achieving constant customer satisfaction and serving high
quality food at all times.
• Distinguish ourselves with
•
•
•
•
Most variety
Freshest toppings
Unique customer experience
Best customer service
• Lean System
• Goal: maximize the value of products offered in the restaurant by
eliminating waste to core processes
• Implementing the 5s Method
Supplier Input and Selection
•
•
•
•
•
Location
Reliability
Review
Value
Quality
Suppliers
• Dough will be made in house
• Fresh, quality product
• Economic efficiency
• All other whole ingredients are purchased from
suppliers such as wholesalers and farmers
Suppliers - General
• Prima Foods, a Baltimore
based wholesaler, will
provide meats, sauces,
spices, and other general
ingredients
• Orders will be made every
3 weeks
• Company requires a
minimum of $300
• Diverse selection of
product, allowing FP to be
flexible
Suppliers – Local
• Cheeses and produce will
be supplied by local
farmers
• Allow restaurant to
distinguish itself from
generic competition
• Allows product offerings to
coincide with the seasons
• Ensures fresh and topquality product
• Many farms located in
Lancaster County, PA
Order Determination
• Our business is centered around a highly individualized
product and thus we must have a responsive supply
chain
• Nonperishable items can be purchased in bulk and stored
• Pizza sauce, cheese, meats, and salad ingredients will be
bought using tight inventory management
• Being efficient and minimizing lead times is essential to
maintain high quality ingredients and a great product
Demand
• Little historical data,
basing demand off of
other restaurants
• Closest comparable
eateries include
Chipotle and
Domino’s
• Estimated 100 - 175
customers per day
• Prepare food
accordingly
Future Demand Forecasting
• After a few weeks of sales, we will be able to use our data to
form a historical forecasting model
• This, along with managements determinations, can effectively
forecast our future business and Firenze Pizza will become
more efficient with time.
• Because of our numerous product combinations, the best
future demand forecast system for us is a weighted moving
average.
• We can assign weights to our products by their popularity to
maximize the efficiency of our ordering process
Queue Management
• The best way to manage order queues is to be efficient in the
ordering and cooking process
• The pizza will be made in a stage process where: 1) person
selects dough 2) cheese and meat selection 3) topping
selection and sent to the oven.
• After the pizza is put into the oven, the customer will move
onto the paying station and will wait a maximum of 3-5
minutes for their pizza
• The salad selection will have their own separate salad bar and
paying station to avoid long lines
Fixed Costs (Start up)
Fixed Costs (Annual)
ANNUAL EXPENSES
Labor: $260,000 ($5,000 a week for 12 employees)
Utilities: $6,600 ($550 a month for electricity and gas)
Wood: $9,000(two cords per month, $375 per cord)
Rent: $48,000 ($4,000 per month for 1,400 square feet)
Pizza ingredients: $70,000 (flour, tomatoes, etc.)
Toppings: $50,000 (pepperoni, peppers, etc.)
Miscellaneous: $20,000
Total . . . . . . . . . . . . . . . . . $463,600
Variable and Fixed Costs
(monthly basis)
Revenue
Monthly Variable Costs:
Ingredients
Toppings
Wages
Utilities
Supplies
Miscellaneous
Total Variable Costs
Contribution Margin
$ 47,145.00
$ 5,833.00
$ 4,166.00
$ 16,667.00
$
550.00
$ 1,000.00
$ 1,666.00
$ 29,882.00
$ 14,784.00
Monthly Fixed Costs:
Rent
Insurance
Salaries
Advertising
Miscellaneous
Total Fixed Costs:
Net Income:
$
$
$
$
$
$
$
Expected Monthly Variable Cost:
$ 29,882.00
Expected Monthly Fixed Costs:
$ 8,751.00
4,000.00
583.00
3,333.00
500.00
335.00
8,751.00
8,512.00
Estimated Revenue
• REVENUE
From pizza: $427,750 (40,000 Unlimited Pizzas at $9.95, 10,000
Unlimited Salads at $7.95, 5,000 Unlimited Dessert Pizzas at $5.95,
and 30,000 soft drinks at $1.95).
Total gross . . . . . . . . . . . $565,750
Annual profit . . . . . . . . . . . $102,150 (revenue of $565,750 minus
expenses of $463,600)
• Note: In Year 1, we expect to make a profit of $48,950 on account of
startup costs of $53,200. However, after Year 1, we foresee an annual
expected profit of $102,150 as a very attainable yearly profit.
Pricing Decision
•
•
•
•
Pizza Illimitato: $9.95
Insalata Illimitato: $7.95
Bevande: $1.95
Dolce Pizza Illimitato: $5.95
Deconstruction of Pricing
Decision
COST TO MAKE AN AVERAGE ILLIMITATO PIZZA
Cheese $1.00
Tomatoes: $0.30
Dough: $0.25
Salt: $0.01
Olive oil: $0.70
Basil: $0.30
Additional Toppings: $1.00
Total . . . . . . . . . . . . . . . . . . $3.56/pie
Cost to customer . . . . . . . . . . . .$9.95
Markup per pie . . . . . . . . . . . .$6.39
Conclusion : Bryn Mawr, PA
provides an ideal target market
with strong growth potential
for a fast-casual Italian
restaurant such as Firenze
Pizzeria