nova burger peter john alexander patrick sullivan lauren mannion brian amabile
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NOVA BURGER
P E T E R J
OH
N A
L E XAND
ER
PAT RI C
K SU
L L I VAN
L AUR
EN M
ANN
I ON
BR
I AN
AM
ABI L
E
NOVA BURGER
Who we are Nova Burger is a drive through, walk up, burger
establishment right here on the mainline. America has been starved of a high quality affordable burgers. With the rapid expansion of McDonald’s, and Burger King and other fast food establishments the quality of quickly made hamburgers went down dramatically. We are here to solve this problem.
Our Mission Nova Burger will redefine what you believe a
hamburger should be, by delivering a quality product in a timely manner.
CORE COMPETENCIES
Friendly and efficient employees that can run a lean system.
Well trained and flexible workers. Flexibility within the roles of our employees
Our ability to differentiate our burgers from our competitors
CORE PROCESSES
Order Fulfillment: Fresh Ingredients Always fresh never frozen Quality that is quick
Customer relationship: Taking pride in our product Serving our customers to the best of our ability Goal is to get new and repeat business
MARKET ANALYSISWhy Burgers?Technomic Report (2011) showcasing burger popularityHalf of Americans eat a burger once a week
95% of people involved in the study say they eat at least one burger a month
ZAGAT BURGER SURVEY 2013Important Findings 64% of participants like the build-your-own burger concept 62% of participants cite meat quality and taste as prime
considerations when purchasing a burger 82% of participants prefer beef burgers 19% of participants would pay $10 maximum for a burger 48% of participants would pay no more than $14.99 for a
burger 81% of participants consider having house ground beef used
on their burger to either be important or somewhat important 75% of participants eat burgers for dinner, 65% eat burgers
as a midday snack, 9% eat burgers late night
ZAGAT BURGER SURVEY 2013 (CONT.)Additional Findings
TARGET MARKET
Young people (especially college students) ages 17-24
Young professionals age 24-30
Our ideal customer is a student or employee wanting a quick, top-quality meal on the go
TARGET MARKET NEEDS/ORDER WINNERSOrder Winners Hours of Operation
From Midday Snack to Late Night Hours (2pm-2am) Customization
64% of participants like the build-your-own burger concept We encourage customer cooking instructions and unlimited toppings for
$1 Quality
62% of participants cited quality and taste as prime considerations before purchasing a burger
House-ground Angus beef burgers Price
19% of participants will not spend more than $10 on a burger Our burger prices: Single Patty….$6.99, Double Patty….$8.99
Efficiency/Convenience Our on the go, drive/walk-thru only model allows us to focus on
efficiency and speed of delivery rather than customer service
PROCESS STRUCTUREManufacturing Process Deliver premium quality burger Make to Order Strategy
Freshness and Customer Customization Small Batch Process Manufacturing
Efficient for low volumes and moderate variety Repetitive Procedures Common Inputs
Service Process Structure Provide efficient and timely delivery Hybrid Office Structure
Moderate Customer Interaction Standardized services
CAPITAL INTENSITY
Rely on workforce rather than machinery and equipment
Low capital intensity Capital will be functional and efficient No automated process Quality will rely on hand crafted skill of
workforce Hand pressed burger patties Hand cut fries
RESOURCE FLEXIBILITY AND CUSTOMER INVOLVEMENT
Minimal-Moderate resource flexibility Equipment serves single primary function Will respond to changing levels in demand throughout
day
Minimal customer involvement outside of ordering process
QUALITY STRATEGY -
Initial Capital Investment Top of the Line Equipment Extensive Employee Training High Manager Involvement Variation of Lean
Organizational Strategy
LEAN ORGANIZATIONAL STRATEGY - 1. Overproduction – food made on a made-to-order basis, no finished
goods inventory, key for freshness
2. Inappropriate Processing – low variation of products, specific equipment and raw materials,
3. Waiting – “runner” during peak hours, organized cooking process
4. Transportation – shipments daily (but only ordering what’s necessary), confident in forecasting equations
5. Motion – limited employees, schedule varies according to peak/slow hours, small kitchen area
6. Inventory – little room for inventory, rely on forecasting, no freezer or microwave, little storage
7. Defects – extensive training for employees on procedures, use of control charts for monitoring
8. Underutilization of Employees – treated as a working unit as opposed to individually, paid above average wages to show value
QUALITY CONTROL
Eliminate defects internally before they become external failures
Managing Inputs – Triple Inspection Process Extensive Employee Training
Food Quality – Limited Menu – able to perfect products we have Daily Shipments of Ingredients Cook on a Made-to-Order Basis
QUALITY CONTROL
Customer Service – Small, Well-Trained Staff Schedules Adjusted to Combat Peak Hours
“Runners” when necessary
Use of Control Charts When Applicable C-Chart to monitor staff order defects
SUPPLIER RELATIONSHIP
How we thought of Nova BurgersQuality local ingredients
Buckhead BeefNational recognition Atlanta OlympicsOwned by Sysco
INVENTORY MANAGEMENT
Determining our supply 3-5 days of refrigeration Always fresh never frozen
FIFO Deliver freshest ingredients whenever possible
150 pounds daily delivery 400 regular, 100 Double-Double
Supplier More is not a problem
DEMAND MANAGEMENT
Move towards trend progression with regression after year 1
Use market analysis to predict year 1 demand
Use composite average of comparable companies Serves approximately 1500 customers daily
Adjust according to: Base off product offering Size of establishment Number of employees Brand Recognition
Comparative Market
Analysis
Trend Progression
DEMAND MANAGEMENT
PRICING DECISION
PRICING DECISION
PRICING DECISION
PRICING DECISION
FULL YEAR FORECAST (2014)
QUESTIONS?
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