NOVA STEAKS

ZAHIR BOKHARIPATRICK BROWNMEAGHAN KELLYMADISON ROSEN

OVERVIEW

I. Mission Statement II. Market AnalysisIII. Operations Strategy IV. QualityV. Supply Chain ManagementVI. Demand ManagementVII. Pricing Strategy

MISSION STATEMENTDeliver a high quality yet affordable cheesesteakUtilize only high quality, fresh ingredientsSupport local communityPurchase ingredients from local

suppliers

MARKET SUMMARYUn

der 5

yea

rs

5 to

9 y

ears

10 to

14

year

s

15 to

19

year

s

20 to

24

year

s

25 to

29

year

s

30 to

34

year

s

35 to

39

year

s

40 to

44

year

s

45 to

49

year

s

50 to

54

year

s

55 to

59

year

s

60 to

64

year

s

65 to

69

year

s

70 to

74

year

s

75 to

79

year

s

80 to

84

year

s

85 y

ears

and

ove

r

0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%16.00%18.00%

Distribution of Villanova Area Pop. By Age

Age Group

Rela

tive

Freq

uenc

y

31.8%Young Adults

42.2%Adults

12.1%Seniors

15.8%Kids

TARGET MARKET IS 15-24 YEAR OLDSComprises 31.8% of the local populationHigh schools & Universities on the Main LineUnder 25 age group eats 46.1% of their food away from home

NEEDS ASSESSMENTCustomization

• Change toppings• Add sides & drinks

Price & Quality• Low price• High quality

Customer Service• Efficient• Friendly employees• Delivery service

ORDER WINNERSPrice & Quality

•Low price, yet high quality productLocation

•Accessible to students•Parking lot with building

Local Involvement•Fresh Ingredients from local suppliers•Support local philanthropies, high schools & universities

MUNCHIES

FRIES 4.00

ONION RINGS 4.00

MOZZARELLA STICKS 4.00

CHEESE FRIES 5.00

PIZZA FRIES 5.00

BUFFALO FRIES 5.00

OLD BAY FRIES 5.00

SWEET POTATO FRIES 5.00

CAJUN FRIES 5.00

BUILD YOUR OWN CHEESESTEAK

CHEESESTEAK 9.00 Add: onion, mushrooms, peppers, lettuce Cheese: whiz, American, provolone

BEVERAGES

FOUNTAIN DRINK 2.00

NOVA STEAKS CHEESESTEAK RESTAURANT

OPERATIONS STRATEGY• Process Structure

• Line- few products, high volume, little specialization• Customer Involvement

• Hybrid office• Resource Flexibility

• Low-moderate• Capital Intensity

• Higher in front office• Lower in back office

• Labor intensive• Basic equipment

CORE COMPETENCIES & COMPETITIVE PRIORITIES

Competencies• Chefs• Location• Technology• Suppliers

• Local ingredients• Reliable, pre-determined schedule• Good relationships

Priorities• Quality• Consistency• Efficiency

SUPPLIERS

Meat

Bread

Cheeses and Produce

Everything Else

C&L Produce

QUALITY STRATEGY

Lean System• Eliminating non value-added

activities(waste)•Continuous improvement and adds value to functional areas.

Types of Waste:•Overproduction•Inventory•Defects

QUALITY STRATEGYKaizen Method

• holding low levels of inventory at a time

Pull Method• let the customer drive demand and production

QUALITY CONTROLBasic training for all employees

•Each employee is responsible for the quality of their workstation

Regular health inspections• Make sure each workstation is up to the highest

qualityAcceptance Sampling

• Used to hold suppliers accountable for the products delivered.

QUALITY CONTROL5S Method

•Sort•Straighten•Shine•Standardize•Sustain

Control Charts• X-bar• R-bar• C-Charts

REVIEW SYSTEM

Continuous review system to maximize freshness of ingredients

Continuous Review System

Low InventoryCombat

Fluctuating Demand

Minimize Waste

DEMAND MANAGEMENT

Executive Opinion

Weighted Moving Average

Linear Regressio

n

WEEKLY DEMAND FORECAST840 weekly customers (60% of Campus Corner’s traffic)

Item Percent Weight % of SalesWeekly Customers Weekly Sales

Cheesesteak 7.69% 5 38.46% 840 323.08Chicken Cheesesteak 7.69% 2 15.38%

840 129.23

Veggie Steak 7.69% 0.5 3.85% 840 32.31Drinks 7.69% 2.5 19.23% 840 161.54Onion Rings 7.69% 0.5 3.85% 840 32.31

Mozzarella Sticks 7.69% 0.5 3.85% 840 32.31

Fries 7.69% 0.5 3.85% 840 32.31Cheese Fries 7.69% 0.5 3.85% 840 32.31Pizza Fries 7.69% 0.2 1.54% 840 12.92Old Bay Fries 7.69% 0.2 1.54% 840 12.92Buffalo Fries 7.69% 0.2 1.54% 840 12.92Sweet Potato Fries 7.69% 0.2 1.54%

840 12.92

Cajun Fries 7.69% 0.2 1.54% 840 12.92TOTAL 100% 13.00 100% 840 840 Items

QUEUE MANAGEMENTiPad

Ordering System

“On-the-go”

Business Model

Cross Functional Team

Minimize Potential Queues

FIXED COSTS

Rent $60,000Insurance $8,000Maintenance $3,000Accounting & Legal $2,500Total $73,500

Fixed Annual Costs

Rent Deposit $12,000Grill $2,500Refrigerator $3,000Fryers $1,400Cooking Utensils $300Soda Dispenser $1,500Tables $800Chairs $800Ordering System $2,500Advertising Startup $1,000Miscellaneous (plates, utensils, etc.) $500Total $26,300

Startup Costs

VARIABLE MONTHLY COSTS

Employee Wages $8,816Payroll Tax $1,058Food & Supplies $14,180Gas $128Electricity $435Water $1,333Total $25,950

Variable Monthly Costs

Employee Wages

34%

Payroll Tax4%

Food & Supplies

55%

Electricity2%

Water5% Variable Monthly Costs

Employee Wages

Payroll Tax

Food & Supplies

Gas

Electricity

Water

PRICING DECISION

MUNCHIES

FRIES 4.00

ONION RINGS 4.00

MOZZARELLA STICKS 4.00

CHEESE FRIES 5.00

PIZZA FRIES 5.00

BUFFALO FRIES 5.00

OLD BAY FRIES 5.00

SWEET POTATO FRIES 5.00

CAJUN FRIES 5.00

BUILD YOUR OWN CHEESESTEAK

CHEESESTEAK 9.00 Add: onion, mushrooms, peppers, lettuce Cheese: whiz, American, provolone

BEVERAGES

FOUNTAIN DRINK 2.00

NOVA STEAKS CHEESESTEAK RESTAURANT

THANK YOU