Barbara Balzarini,Jessica Dunne,Nick Meusch,& Joey Raio
Background Fast-casual eating and drinking
establishment Offers highly customizable hamburgers
and milkshakes, as well as bottled beer Electronic ordering system with a touch
screen menu, allowing customers to design their own burgers
Seats 40
Mission StatementBuild-A-Burger strives to create a highly customizable dining experience utilizing top quality ingredients and modern technological advances, all while maintaining a unique restaurant atmosphere perfect for teenagers, college students, and families.
Environment
Core Competencies Efficiency- touch screen ordering terminals
will enhance accuracy in completing orders Flexibility- a wide array of toppings,
condiments, and choices will ensure every customer can receive the exact meal they crave every time they visit Build-A-Burger
Affordability- Smart shopping from reliable yet reasonably priced suppliers will allow us to reach a large consumer base, regardless of income
Environmental Scanning
SWOT ANALYSISSTRENGTHS• Great tasting food• Customizable burgers
& shakes• Laid back, fun
atmosphere• Affordable
WEAKNESSES• No previous
restaurant experience• BRGR Joint failed in
the area• No established
reputation
OPPORTUNITIES• Large market of college
students in the area• Students enjoy getting
off campus
THREATS• Price of ingredients may
rise• Competition in area• Technology may fail us
occasionally
Core Processes Supplier Relationship Process
Keep costs low for an inexpensive end product Want reliable supplier relationships
Order Fulfillment Ensuring quality and consistency Customizing dishes
Customer Relationship Listen to customer feedback Offer rewards
New Service/Product Development Ordering system helps achieve maximum customization
Market Analysis:Industry
“Fast Food” Industry: patrons pay before eating
Expected to continue it’s trend of long-term growth
As traditional concept of fast food evolves, restaurants will need to adapt to changing consumer preferences
Market Analysis:Surrounding Area
Township Median Household Income Population Median Resident AgeRadnor Township 89,114.00$ 31,041 31.7Bryn Mawr 49,188.00$ 3,779 23.5Villanova 174,511.00$ 9,189 N/AHaverford 104,924.00$ 7,058 N/A
Target Market Segments Families are looking for quality food in a
friendly dining environment that is affordable and meets the differing tastes of their families.
College Students are looking for first of all inexpensive food close to the local campus that has consistent quality and is customizable.
High School Students are looking for a restaurant that is close to their house that offers quality food at a reasonable prices.
Target Market Order Winners Consistent High Quality Customizability Affordable price Fun dining environment
Competitive Priorities Stem from needs of target market
Price/Quality Balance College students demand certain price level Quality standards cannot be ignored
Flexibility Consumer preferences grow and change Technology-oriented society
Menu
Operations Strategy:Process Structure Make-to-Order
Create products when a customer places an order
No finished goods in inventory Ensures freshness & customizability Keep low safety stock to conserve
perishable resources/ ensure freshness
Operations Strategy:Resource Flexibility Ingredients may change based on
customer demand Use survey results to determine what
ingredients to offer Will use input from customers to add new
toppings, flavors, etc.
Operations Strategy:Capital Intensity High capital intensity to emphasize:
Customization High quality Efficiency
Only employ 10 individuals Chefs and runners—no waitststaff
Technological resources Utilize touch screen ordering system
Quality Strategy:Six Sigma
Minimize defects Maintain consistency in burger
preparation & assembly Measure variability in
processes and address issue that we see
Improve customer satisfaction Customers know to expect high
quality food & service
Quality Strategy:Lean System Remove waste and delays Control inventory levels to meet customer
demand Reduce wait time of customers Use the 5S method
Sort Straighten Shine Standardize Sustain
Quality Control Establish quality control standards on
ingredients Gauge metrics that show the date of produce
harvest and meat production Customer order wait time will be recorded to
ensure consistent and timely orders This data will be analyzed using R-charts and X-
charts Customer feedback will be taken through an
optional survey after ordering
Quality Control Managers and employees will be properly
training on quality assurance practices Ingredients will be checked on arrival for
freshness Mangers will ensure proper ingredient
storage and necessary documentation at each open an close
Ingredients will be checked periodically during the day
Supply Chain Management
Supply Chain Management: Technology Suppliers Guangzhou Yunhui Computer Company
China Touch Screen ordering terminals
Restaurant Plus Los Angeles, CA Software for running ordering terminals
Demand Management Forecasting Customer Demand- Year 1
McDonalds- serves 69,000,000 customers at 34,000 locations per day= 2,029 customers per location per day
Project 5% of this figure on weekdays, 8% on weekends
Forecasting Customer Demand- After Year 1 Historical Data & Trend Projection with Regression
Monday-Thursday Friday-SundayCustomers Per day 102 163
Demand Management Forecasting Product Demand- Year 1
Divided into 6 product groups, customer purchase percentages predicted as follows:
Burgers- 70% Hot dogs- 25% Salads- 5% Milkshakes- 60% Fries- 85% Bottled Beer- 30%
Forecasting Product Demand- After Year 1 Historical Data & Trend Progression with Regression
Product Monday-Thursday Friday-SundayBurger 71 114Hot Dog 25 40Salad 6 9Milkshake 62 98Fries (order) 87 139Bottled Beer 31 49
Products Sold Per day
Estimated Start-Up CostsStart-up Costs
Advertising $ 15,000
Liquor License $ 20,000
Labor Training $ 1,440
Space Deposit $ 12,000
Restaurant Supplies & Equipment Investment $ 57,626
Total Start-up Cost $ 103,166
Estimated Fixed & Variable CostsMonthly Variable CostsUtilities (Electricity, Water)
$ 2,500
Food $ 17,000
Beverage $ 10,000
Total Variable $ 29,500
Fixed Costs (per year)Labor Wages (est. 10 employees) $ 310,000 Property/Liability Insurance $ 5,000 Workers Comp Insurance $ 8,000 Rent $ 144,000
Total Fixed Costs $ 467,000
Conclusion Build-A-Burger’s plan to utilize technology to
promote efficiency, flexibility and affordability will ensure it to be a staple on the main line