KRISTEN SVENCONIS, JULIA ANGELOS, WILLIAM GERBER, & HARRISON BAKER
5 Boroughs Bagels
Mission Statement
“To bring our customers a convenient, consistent, and quality-driven New York style bagel experience outside of the five boroughs. Offering a unique selection of delicious options
catered to a college student’s hours”
Organization Strategy
Environmental Scanning: Main Bagel/Breakfast Competitors: Bruegger’s
Bagels, The Bagel Factory, and Dunkin’ Donuts Wealthy area Lots of college students, many of whom are from NY
& NJ
Organization Strategy
Organization Strategy: Cater to students with Lunch/Dinner/Late Night
hours and food variety Cater to the tri-state area students’ expectations of
bagel quality with an authentic New York style of preparation
Core Processes: Importation of NYC tap water Overnight fermentation of dough “Poach” bagels in boiling water
Market Analysis
Location: The Corner of Summit Grove and W. Lancaster
Avenue
Nearby Colleges: Villanova University, Haverford College, Bryn
Mawr College, & Harcum College
Market Analysis
Broad Target Market: College-Aged Consumers
Support: There are 14,000 college-aged consumers in the
immediate proximity (FactFinder 2010)
A study shows college students spend 36% of their disposable income on food (E-Marketer 2013)
Market Segments: “New York Style” segment “Late Night” segment “Early Crowd” segment
Market Analysis
Competition: Direct Breakfast Competition
1) The Bagel Factory 2) Bruegger’s
Indirect Breakfast Competition 1) Starbuck’s Coffee 2) Dunkin Donuts
Market Analysis
Competition: Direct Late-Night Competition
1) Main-Line Bistro Indirect Late-Night Competition
1) Campus Corner 2) Wingers 3) Domino’s Pizza
Market Analysis
Order Winners of College-Aged Consumers: 1) Accessibility 2) Wide range of operating hours 3) Unique product offerings
5 Boroughs Bagels has aligned it’s competitive priorities with these order winners
Product & Service Offerings
Signature bagels: Asiago Cheese, Blueberry, Cinnamon Raisin, Chocolate Chip,
Everything, French Toast, Garlic, Gluten-free, Jalapeno Cheddar, Onion, Plain, Potato, Poppy Seed, Rosemary Olive Oil, Sesame, Sundried Tomato, Vegetable, and Whole Grain.
Specialty bagels: Pizza Bagels, Bagel Deli Sandwiches, Peanut Butter and Jelly
Bagel Sandwiches, Cheese-steak Bagel Sandwiches, Pretzel Bagels, and Cheese-y Bagel Knots
Cream Cheese Spreads: Plain, Light Plain, Veggie, Jalapeno, Herb Garlic, Onion and Chive,
Smoked Salmon, Strawberry, Raspberry, Blueberry, Banana, Nutella, Peanut Butter and Hazelnut.
For refreshments, various juices, sodas, and teas will be available for consumers. In addition, fruit smoothies will be available for purchase. Freshly brewed coffee will also be sold at 5 Boroughs Bagels, both hot and iced.
Operations Strategy
External Customers: 5 Boroughs Bagels customers, end product
consumers.
Internal Customers: 5 Boroughs Bagels bakers.
Internal Suppliers: 5 Boroughs Bagels bakers, employees, and
equipment.
Operations Strategy
Process Structure: Late night/Early morning option Seating for customers, however no wait-service
Operations Strategy
Customer Involvement: Cream Cheese selection Mix and Match option
Operations Strategy
Resource Flexibility: Mixture of specialized and enlarged Bakers, cooks, cashiers
Operations Strategy
Capital Intensity High Automation
Service Customer-Contact Matrix
Topic 2 Presentation: Process Stategy VSB 3008 - Myers
17
Quality Strategy
Six Sigma
“Bench mark” measurements
Quality of service, environment, production
Training of employee
Quality management skills
Quality Strategy
Quality Management Skills: Reporting of customer dissatisfaction incidents Immediate attention to fixing issues with
equipment Elimination of less than “top notch” quality
bagels
Quality Strategy
Top Quality Management: Continuous Improvement
Efficiency Timeliness Pricing Customer Satisfaction
Flat organizational structure
Quality Strategy
Six Sigma Quality Control Bagel quality recording by bagel maker Using quality standard guidelines
http://maaw.info/SixSigmaSummary.htm
Quality Strategy
Loyalty programs
Quality Control
Imported water from New York
“Use By” date methods
Defective bagels will be analyzed
Service quality – customer surveys & feedback options
Employee training
Supply Chain Inventory Management
Low inventory levelsMonthly supplies:
to-go bags, coffee cups, juice cups, straws, lids (both coffee and juice), plastic utensils, napkins, and paper towels, cleaning supplies, bathroom supplies, light bulbs, and sweeteners
Daily/Weekly supplies: fruit for the smoothies and cream cheeses (strawberries, raisins, apples,
blueberries, bananas, kiwis, raspberries, mango, oranges), all types of milk (soy, almond, skim, 1%, 2%, whole, half and half, and buttermilk), barley malt, kosher salt, eggs, water, unbleached flour, baking soda, liquid rennet, sea salt, lox, scallions, peppers, carrots, cinnamon, marinara sauce, shredded cheese, bacon, sausage, ham, peanut butter, jelly, and butter.
Primary Suppliers: US Food, Foods Galore, Coke, Naked Juice, Metropolitan Bakery, and New
York City Water Board.
Supply Chain Inventory Management
New Company Goals: Keep inventory costs low, but stay up with
demandEOQ: Economic Order Quantity
Supply Chain Inventory Management
Lean Inventory Management System Assess Inventory Levels:
each day and on a weekly basis
Demand Management
Expect 300-400 transactions per dayForecasting:
Early reliance on Judgment methods of forecasting Existing and original market research Shift to weighted moving avg. with emphasis on
recent demand As amount of historical data grows, shift to more
complex, qualitative methods (exponential smoothing, trend regression)
Pricing Decision
Start up Budget
Total Capital Equipment: Furniture: $3,040 Equipment/Machinery: $34,158 Non-depreciable equipment: $6,655
Business License: $200
Pricing Decision
Annual Fixed Costs: Buildings/Real Estate: $2,900 per month ($34,800
annually) Legal/Accounting fees: $1,700 Worker’s Compensation Insurance: $160 per
month ($1,920 annually) General Business Insurance: $8,000 annually Interest expense: $3,600 annually
Pricing Decision
Relevant Variable Costs (monthly): Payroll: $1,531 Supplies: $244 Repairs/maintenance: $286 Advertising: $500 Car delivery/travel: $325 Utilities: $100 Taxes: $1,060
Pricing Decision
Inventory Costs Per Month: $231 (coffee/tea) $1,260 (bottled juice/soda) $348 (signature bagels) $450 (specialty bagels) $520 (breakfast sides/sandwiches) $720 (fruit smoothies) $170 (cream cheese)
Pricing Decision
Approximate Menu Costs: Breakfast sandwiches (egg on a bagel with either bacon
or sausage): $3.50 Breakfast sides (sausage, bacon, hash browns): $2.00
each Signature bagels: $0.95 each Specialty bagels: $1.10 each Cream cheese: additional $1.10 each Bottled juice/soda: $1.75 each Coffee/tea: $1.20 (small), $1.80 (medium), $2.00 (large) Iced coffee: $1.75 (medium), $2.30 (large) Fruit Smoothies (one size only): $3.75 each
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