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