Lancaster Last Call

Kelsey McHugh, Justin Patri, Teddy Powers, Tiffany Savich, and Megan Weir

Lancaster Last Call

Part I: Strategy

Lancaster Last Call

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.

Lancaster Last Call

Organization

• Environmental Scanningo college and high school students/staff, localso students are transient - move from bars to

dormso safe, walking community at nighto close to train routes - R5

• Core Competencieso all-night option - quick, affordable solutiono customer service, food quality, innovative Lancaster Last Call

• Core Processeso Marketing/Customer Relationships

branded bright light off of truck; send mailerso Employee Development and Satisfaction

pay more than minimum wage; proper trainingo Improvement/Change

Management/Operations provide benchmarking; insure compliance

o Financial Reporting evaluate revenue/expenses and demand/cost

Lancaster Last Call

Market Analysis

• Market Segmentso 4 major segments

• Target Marketo “Yuppie” segmento College Students segment

Lancaster Last Call

Market Analysis

• Assessment of Target Marketso Impulse buyingo Intoxicated purchasing behavior o Instant gratification

• Order Winner(s)o affordable o grab-and-go food

Lancaster Last Call

Competitive Priorities

• Delivery speed

• Low-cost operations

• Consistent quality

• Volume flexibility

• Customization

Lancaster Last Call

Products/Services

• Breakfast sandwiches

• Late Night greasy foodso Cheesesteakso Chicken fingers

• Create your own Lancaster Last Call sandwiches

Lancaster Last Call

Operations• Process Choice

o 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.

Inputs include: o Ketchupo Mustardo Honey Mustardo BBQ Sauceo Hot Sauceo Buffalo Sauceo Beef/Porko Cheese

o Rancho Thousand Islando Mayonnaiseo Drinks (Fountain)o Water o Sodao Juiceso Bread

Lancaster Last Call

Operations

• Equipment to run this includes:o Food trucks with the ability to cook hot foodo This truck will have a grill and a fryer that allow for ability to constantly have fresh hot

food o 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 supplierso Timelinesso Reliabilityo Consistent Quality of Producto Freshness of Producto Flexibility to deliver extra when demand schedule is higher than expected

Lancaster Last Call

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

Lancaster Last Call

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

Lancaster Last Call

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

Category Solutions

Overproduction Assemble to Order

Inappropriate Processing Cross train employees

Waiting Efficient # of employees

Transportation Supplier selection

Motion Large crowds

Inventory JIT, small batches

Defects Training of employees Underutilization of Employees Stations match employee’s skills

Lancaster Last Call

Part II: Implementation

Lancaster Last Call

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

Lancaster Last Call

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

Lancaster Last Call

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 resultsLancaster Last Call

Supply Chain Inventory Management

• Supplierso Conshohocken Bakery and Gianto Costo – (non) perishables; buy in bulk; cheap

• Supply Orderso weekly basis depending on demand/needo must take into account weather conditions as

well as the Villanova school year schedule (and long breaks)

Lancaster Last Call

Demand Management

• Weekly demando Market research & Executive Opinion

• Long-term demando Multiplicative seasonal methodo Trend projection with regression

• Potential queueso Anticipation inventory

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Pricing Decision Fixed Costs

• Fixed costs – come out to roughly $100,000o Purchase of truck ($70,000 - $80,000)o Insurance – truck and to prevent the owners

from losing everything if there is a lawsuito Parking permitso Licenses – food, commercial driver, general

businesso Exterior customization of the trucko Workers compensation

Lancaster Last Call

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, gasolineLancaster Last Call

Menu Item Pricing

• Prices of Items on the Menuo small, regular, super cheesesteak

$5.75, $8.00, $11.75o regular, super mozzarella sticks

$5.25, $9.25o regular, super chicken fingers

$6.25, $11.25

Lancaster Last Call

Lancaster Last Call•Thank you!

Lancaster Last Call