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TAT @ Pinkberry, Inc.

HARVARD EXTENSION SCHOOL MGMT – E5060 Operations Management Spring 2013. TAT @ Pinkberry, Inc. A franchise upscale frozen dessert restaurant. Hathi Nguyen Jordan Drake Kaodi Ugoji Pratima Puttagunta Ram Turaga Claire Helene Orsini. Team Kaizen :.

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TAT @ Pinkberry, Inc.

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  1. HARVARD EXTENSION SCHOOL MGMT – E5060 Operations Management Spring 2013 TAT @ Pinkberry, Inc. A franchise upscale frozen dessert restaurant Hathi Nguyen Jordan Drake Kaodi Ugoji PratimaPuttagunta Ram Turaga Claire Helene Orsini Team Kaizen:

  2. What is ? • Handcraft Yogurt Bar • Located in Harvard Square • Sell Frozen Yogurts “FroYo” • Seating capacity: 16 customers • Staff: 1shift leader, 5 servers • Gross Sales/year: $1.26M (2012) • Average check: $6.07 • Average daily check count : 576

  3. The Menu: 1, 2, 3 Steps! • Original Frozen Yogurt • Greek Yogurt • Seasonal Frozen Yogurt • Key Lime • Chocolate • Hazelnut • Coconut • Grapefruit • Lychee • Mango • Peach • Pumpkin • Passion-fruit • Strawberry • Pomegranate • Gingerbread Add your topping(s) Get your FroYo! Pick your flavor

  4. The “FroYo” Process 8 min 40s/ peak period Buffer Topping Bar Kitchen Table Front Counter Finish Order Low-Fat Milk Inventory (Freezer Storage) Taking Order + Order Assembly Pour pre-mixed solution in the yogurt machine Mix the ingredients together in a measuring bucket using a mixer Low-Fat Yogurt Flavor powder Fruits cut and Prepare Dry Toppings Adding Toppings --------------------------------- --------------------------------- Delivery and Payment 5 min / bucket 10 min / 3 buckets Total Time is 23 min 40s

  5. The “FroYo” Process 8 min 40s/ peak period Buffer Topping Bar Kitchen Table Front Counter Finish Order Low-Fat Milk Inventory (Freezer Storage) Taking Order + Order Assembly Pour pre-mixed solution in the yogurt machine Mix the ingredients together in a measuring bucket using a mixer Low-Fat Yogurt Flavor powder Fruits cut and Prepare Dry Toppings Adding Toppings --------------------------------- --------------------------------- Delivery and Payment 5 min / bucket 10 min / 3 buckets Total Time is 23 min 40s

  6. Customer Experience Assembly and Payment Choice of Toppings Server offers sample and takes order Immediately prompt to enter queue Customers enter the store

  7. So what’s the problem? T.A.T!

  8. Turn Around Time x3 Over 7 people, TAT = 8min40s PEAK DEMAND Assembly and Payment Choice of Toppings x2 4 – 6 people, TAT = 5min Server offers sample and takes order Immediately prompt to enter queue AVERAGE DEMAND Customers enter the store 1 – 3 people, TAT = 3min LOW DEMAND

  9. Customer Experience at Peak Period 1 2 3 Counter space for Smoothie Menu Yogurt Machines Cashier 4 Servers Tasting Topping Serving Counter Register 1 Register 2 1 Minutes 10 Seconds 3 Minutes 30 Seconds One Main Queue 4 Minutes Total TAT: 8 Min 40 Sec Seating Area Entrance

  10. Voice of Customer *Samples based on survey from 28 customers

  11. So How to Improve T.A.T AND Keep Customer Experience?

  12. The Bottlenecks at Peak Period • Identified bottlenecks: • Choosing/tasting FroYo • Choosing toppings • Payment Process • Store Response: • Increase servers to 4 • Add 1 extra cashier occasionally

  13. Recommendations: Option A 1 2 3 Counter space for Smoothie Menu Yogurt Machines Server and Cashier Cashier 3 Servers Topping Serving Counter Register 1 Register 2 Tasting Express Line The Main Queue 35 Seconds 3 Minutes 30 Seconds 2 Minutes Total TAT: 3 Min 55 Sec Total TAT: 6 Min 5 Sec Seating Area Entrance

  14. Recommendations: Option B 1 2 3 Counter space for Smoothie Menu Yogurt Machines Cashier 3 Servers Topping Serving Counter Register 2 Register 1 Sampling Staff The Main Queue 2 Minutes 10 Seconds Tasting Area 35 Seconds 2 Minutes 25 s Total TAT: 5 Min 10 Sec Seating Area Entrance

  15. Other Value-Add Recommendations du jour • Introduction of Daily Recommendations: • “Special FroYo du Jour” • “Healthy FroYo du Jour” • Separate Free and Premium Toppings

  16. Estimated Impact on C-Q-D and Gross Sales 48% 40% 34% 28% Assumption: 70% of the Gross Sales are generated at peak period

  17. Hope you had fun… we did! TEAM KAIZEN THANKS YOU! Q&A?

  18. ADDITIONAL SLIDES

  19. Customer Experience PEAK DEMAND Payment Choice of toppings and assembly Server offers sample and takes order Immediately prompt to enter queue 8m40s! Customers enter the store 4 min 2m10s 1m20s 1m10s

  20. The Pinkberry Team Chart 1 District Manager 1 Store Manager 5 Fruit Cutters 5 Shift Leaders 17 Part-Time Members (Servers)

  21. Recommendations: Option A INTRODUCE AN “EXPRESS QUEUE” AND ADD EXTRA CASHIER Express Queue Normal Queue • Enter Queue : 2m • Choice of FroYo & Toppings: 20s • Order Assembly: 1m • Payment: 35s • TAT = 3min55 • Time gain = 4min45s • Enter Queue: 2m • FroYo Tasting & Selection: 1m30 • Choice of Toppings: 1m • Assembly 1m • Payment 35s • TAT = 6min5s • Time gain = 2m35

  22. Recommendations: Option B INTRODUCING A TASTING AREA, ADD PAYMENT CASHIER Normal Queue TAS TING AREA • Enter Queue: 2m25s • FroYo Selection: 10s • Choice of Toppings: 1m • Assembly 1m • Payment 35s • TAT = 5min10s • Time gain = 3min30s

  23. How is competition different? > TAT : 3min / 5 min / 8min40s TAT : 1min / 3min40s / 3min40s

  24. Competition: The Berryline Experience 1 2 Menu Yogurt Machines 2 Servers Cashier • Local brand • Harvard Square • Max TaT 3min40 • Less demand (never more than 6 customers at a time) Tasting Topping Serving Counter Register 1 One Main Queue Total TAT: 3 Min 40 Sec Seating Area Entrance

  25. Detailed Impact of TAT on Gross Sales

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