TigerTooth.com
Sarah Cross
Scott Eblen
Maryam Kamvar
Seton Marshall
TigerTooth.com: Our Mission
• To provide a customer-friendly food delivery
service which utilizes e-commerce technology to
improve upon TigerFood’s existing framework
• To provide participating restaurants publicity and
increased revenue
• To improve and expand our business as better
technologies (e.g. wireless capabilities) yield more
opportunities for growth
Background Information:
The Problem
TigerFood: Our Parent Company
General Information
• Food delivery service for Princeton students
• Serves 3 local restaurants:
– Karen’s Chinese Restaurant
– Soonja’s Café
– George’s Roasters and Ribs
• 1 driver per restaurant
• Open 7pm - 1am daily
• Average 50 orders per night
– min 20, max 80
TigerFood: Problems
Financial Sector
• Manual Bookkeeping
• Fake U-Store Cards hard to trace
• High costs on slow nights
– drivers paid a minimum of $8 per hour, including
delivery premiums and tips
– potential loss of $174 per night
– realistic loss of $25 on a slow night
TigerFood: Problems
Operational Sector
• Inefficient Driver Routing ==> Fewer Restaurants
– Hoagie Haven was cut
– possible further reduction in the number of restaurants
– BUT abundance of interested restaurants
• Inflexibility of Labor Costs
– number of drivers to be paid independent of consumer
demand
• Advance Orders Difficult
– orders sent directly and separately to restaurant
– serious potential for order delays on busy nights
TigerFood: Problems
Informational Sector
• No demographic information
– restaurants unable to take advantage of consumer
information to increase their revenue by targeting
consumer preferences
• Static menus
– expensive and frequent advertising about updates
– no daily “specials” to increase demand on slower nights
• Lack of product innovation
– difficult to expand past delivery service
The TigerTooth Solution
The TigerTooth Solution Customer
Interface
• Dynamic menus with extensive search capabilities
The TigerTooth Solution
Customer Interface
• Efficient online ordering using “shopping cart”
technology
– ability to order from multiple vendors at once
The TigerTooth Solution
Customer Interface
• “My TigerTooth” Personalized Memberships
– online “1-step” ordering for repeat customers saves
delivery and payment information
– special deals for frequent users
– optional emails about menu updates and specials from
your favorite restaurants
– customized site according to your food preferences
Flow Chart
Customer Interface
Welcome Page
Login
Search Options
Username
Login
Password
Browse
Register New
Account
Register
Restaurant
Name
Database of
Menu Items
Price Range
Type of Food
Name
Email
Tiger Food
Manager’s Page
View orders
categorized by
restaurant name
and order time
Campus
Address
Confirm Order:
Submit
Display Results of Search
select menu items to
order
submit
The TigerTooth Solution
Restaurant Interface
• Automatic payment due to online credit card
ordering
• Advance ordering increases production efficiency
– economies of scale for popular orders
– better time management
• Ability to track orders and collect demographic
information
• Immediate transfer of information about menu
updates
– dynamic “specials” to increase demand on slow nights
Flow Chart
Restaurant Interface
Login
Username
Password
Restaurants have
option to update/add
new items to their
menu
submit
Database
of menus
(seen by
users)
The TigerTooth Solution
Delivery Interface: An Extension
Wireless Communication Eliminates Operational Inefficiency
• Eliminate “1-driver-per-restaurant” rule
– number of drivers can reflect demand
– can support additional restaurants
• Various Routing Alternatives
– FIFO (first order goes to first driver)
– Driver’s Decision (driver claims order)
– Closest Contact (GPS used to optimize routing)
– Neighborhood Assignments (drivers assigned areas)
Income and Expenses:
How We Increase Profit
Revenue
The TigerFood Model
• $1.50 delivery fee
– $0.50 to agency, $1.00 to driver
• Up to 25% commission from each order placed
• Average order is $15.00 => $3.75 commission
• 50 orders per night on average
– # orders between 20 and 80
• $212.50 average total revenue per night
– total revenue between $85 and $340
• ~ $1500 average revenue per week
Revenue
The TigerTooth Model
• Flexibility of website increases number of orders
– ability to order from multiple vendors
– specials for frequent users
– follow-up emails to encourage repeat users
• Average order slightly larger due to easy payment
methods
– member specials to induce larger orders
Costs
The TigerFood Model
• Two 3 hour shifts (7-10pm, 10-1am), one driver at
each restaurant
• Drivers are paid $1.00 per delivery plus tips
• Drivers paid a minimum of $8 per hour
• Nightly Manager paid $30/night
• Accountant paid $70/week
• Advertising: ~$150, 4 times per year
– Annual Cost = $600
Costs
The TigerTooth Model
• Drivers paid the same as before
– number of drivers varies with expected demand
• Nightly Manager paid $30/night for actively
managing orders from the web
• Accountant and Assistant Manager deemed
ineffective. Accounting is now done online.
• Advertising Costs cut in half due to dynamic
menus on website.
• TigerTooth.com saves $300 plus monthly costs for
Accountant and Assistant Manager
Costs
A Graphical Depiction
• Cost only incurred for
slow night
• TigerFood
– 3 drivers regardless
– average order = $15
• TigerTooth
– 2 drivers for slow night
– average order = $15
• assume 15% tip
• night manager paid $30
120
100
80
TigerFood
(3 drivers /
shift)
TigerTooth
(2 drivers /
shift)
60
40
20
0
Cost Per
Driver
Total
Nightly Cost
Other Considerations
Potential Competitors
Monopoly in the Princeton Area
• Food.Com
– extensive nationally; only Papa John’s in Princeton
– patented system using geocodes to match vendors and
consumers
• Waiter.Com
– primarily in Bay Area, “Waiter Points” system
• CampusFood.Com
– aimed at college students (find restaurant by college)
– began at UPenn, no real operations in Princeton
Future of TigerTooth.com
Expansion
• Products: transferrable gift certificates, online
reservations, event planner
• Customer Base: other colleges, households, businesses
• Industries: video rental, school supplies, apparel
• Partner Types: coffeeshops, supermarkets, liquor stores
• Technology:
– GPS order tracking for customers, restaurants, and drivers
– wireless communication enables optimized routing for drivers
– allow customers to update orders
– automatic emails to members highlighting specials
Conclusion
Benefits and Barriers of TigerTooth
• Benefits
–
–
–
–
Increases revenue, Decreases cost
Eliminates current inefficiencies of TigerFood
Provides a framework for further innovation
Success of current TigerFood operation allows our
benefits to be realized immediately
• Barriers
– internet access necessary
– credit card only payment (more efficient bookkeeping)
« neither is an issue for Princeton students