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Lancaster Last Call

Lancaster Last Call. Kelsey McHugh, Justin Patri, Teddy Powers, Tiffany Savich, and Megan Weir. Part I: Strategy. Mission Statement.

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Lancaster Last Call

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  1. Lancaster Last Call Kelsey McHugh, Justin Patri, Teddy Powers, Tiffany Savich, and Megan Weir

  2. Part I: Strategy

  3. Mission Statement Lancaster Last Call strives to build long lasting customer relations and high satisfaction by providing delicious comfort food at an affordable cost through great quality service and convenience.

  4. Organization • Environmental Scanning • college and high school students/staff, locals • students are transient - move from bars to dorms • safe, walking community at night • close to train routes - R5 • Core Competencies • all-night option - quick, affordable solution • customer service, food quality, innovative

  5. Core Processes Marketing/Customer Relationships branded bright light off of truck; send mailers Employee Development and Satisfaction pay more than minimum wage; proper training Improvement/Change Management/Operations provide benchmarking; insure compliance Financial Reporting evaluate revenue/expenses and demand/cost

  6. Market Analysis • Market Segments • 4 major segments • Target Market • “Yuppie” segment • College Students segment

  7. Market Analysis • Assessment of Target Markets • Impulse buying • Intoxicated purchasing behavior • Instant gratification • Order Winner(s) • affordable • grab-and-go food

  8. Competitive Priorities • Delivery speed • Low-cost operations • Consistent quality • Volume flexibility • Customization

  9. Products/Services • Breakfast sandwiches • Late Night greasy foods • Cheesesteaks • Chicken fingers • Create your own Lancaster Last Call sandwiches

  10. Operations • Process Choice • The process choice is based around agility and customer service helping our customers to have the best possible late night/early morning greasy eating experience. The customer involvement will range from minimally ordering something off the menu to giving a customized order from our selection of products on the menu. In terms of capital intensity, each person who is employed by us will be able to fulfill the role of prepper, chef and cashier therefore increasing labor productivity. Employees will also receive special training to make sure they are able to maintain work stations with the highest health inspection standards. Inputsinclude: • Ketchup • Mustard • Honey Mustard • BBQ Sauce • Hot Sauce • Buffalo Sauce • Beef/Pork • Cheese • Ranch • Thousand Island • Mayonnaise • Drinks (Fountain) • Water • Soda • Juices • Bread

  11. Operations • Equipment to run this includes: • Food trucks with the ability to cook hot food • This truck will have a grill and a fryer that allow for ability to constantly have fresh hot food • It will also include a freezer so that we can keep the food condiments and products chilled until they are ready to be served • Key factors in choosing suppliers • Timeliness • Reliability • Consistent Quality of Product • Freshness of Product • Flexibility to deliver extra when demand schedule is higher than expected

  12. Quality • Main priorities: providing customers with high quality service and quick delivery • Ensure food is served with consistently high standards • Retain highest number of customers possible

  13. Creating a High Quality Environment • Step 1: Create a performance based culture by hiring the best employees • Emphasis on “customer comes first” mentality • Step 2: Train employees through a comprehensive training program • Maximize efficiency and develop a wide array of skills • Step 3: Find suppliers who match our quality standards • High-quality and fairly-priced ingredients

  14. Lean Business Structure • Keep costs down without compromising customer service • Maximize value added by each activity by removing waste and delays • Categorized 8 different types of waste and developed ways to remove each one

  15. Part II: Implementation

  16. Quality Control • Online Reviews • More efficient than a physical scorecard • Designed to let customer reflect on experience at Lancaster Last Call • Main question: “Was the customer satisfied?” • Scale of 1-3 (not satisfied, indifferent, satisfied) • Free response portion • Encourages customer to specify exactly what they did or did not like at Lancaster Last Call

  17. Quality Control • Customer Loyalty Card • With every 10 orders at Lancaster Last Call, customer receives a free side • Encourages customers to visit frequently • Determines customer loyalty • Determines if products are satisfying • High customer loyalty means highly satisfying products

  18. Quality Level of Inputs • Strive for highly-qualified suppliers with high-quality and fairly-priced ingredients • Employees on duty during delivery are in charge of ingredient inspection in 2 methods: • 1. Visual – if product is too mushy, the wrong color, or moldy it fails inspection • 2. Smell/Taste – if product has a funny smell or tastes wrong it fails inspection • Employees required to track all inputs and keep records of all inspection results

  19. Supply Chain Inventory Management • Suppliers • Conshohocken Bakery and Giant • Costo – (non) perishables; buy in bulk; cheap • Supply Orders • weekly basis depending on demand/need • must take into account weather conditions as well as the Villanova school year schedule (and long breaks)

  20. Demand Management • Weekly demand • Market research & Executive Opinion • Long-term demand • Multiplicative seasonal method • Trend projection with regression • Potential queues • Anticipation inventory

  21. Pricing Decision Fixed Costs • Fixed costs – come out to roughly $100,000 • Purchase of truck ($70,000 - $80,000) • Insurance – truck and to prevent the owners from losing everything if there is a lawsuit • Parking permits • Licenses – food, commercial driver, general business • Exterior customization of the truck • Workers compensation

  22. Pricing Decision Variable Costs • Variable costs – come out to just under $30,000/month • Inventory – food, drinks • Eggs • Meat • Cheese • Rolls • Chicken • Pepsi products • Packaging, cleaners/disinfectants, gasoline

  23. Menu Item Pricing • Prices of Items on the Menu • small, regular, super cheesesteak • $5.75, $8.00, $11.75 • regular, super mozzarella sticks • $5.25, $9.25 • regular, super chicken fingers • $6.25, $11.25

  24. Lancaster Last Call Thank you!

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