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NOVA BURGER. Peter John Alexander Patrick Sullivan Lauren Mannion Brian Amabile. Nova Burger . Who we are
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NOVA BURGER Peter John Alexander Patrick Sullivan Lauren Mannion Brian Amabile
Nova Burger • Who we are • Nova Burger is a drive through, walk up, burger establishment right here on the mainline. America has been starved of a high quality affordable burgers. With the rapid expansion of McDonald’s, and Burger King and other fast food establishments the quality of quickly made hamburgers went down dramatically. We are here to solve this problem. • Our Mission • Nova Burger will redefine what you believe a hamburger should be, by delivering a quality product in a timely manner.
Core Competencies • Friendly and efficient employees that can run a lean system. • Well trained and flexible workers. • Flexibility within the roles of our employees • Our ability to differentiate our burgers from our competitors
Core Processes • Order Fulfillment: • Fresh Ingredients • Always fresh never frozen • Quality that is quick • Customer relationship: • Taking pride in our product • Serving our customers to the best of our ability • Goal is to get new and repeat business
Market Analysis • Why Burgers? • Technomic Report (2011) showcasing burger popularity • Half of Americans eat a burger once a week • 95% of people involved in the study say they eat at least one burger a month
Zagat Burger Survey 2013 • Important Findings • 64% of participants like the build-your-own burger concept • 62% of participants cite meat quality and taste as prime considerations when purchasing a burger • 82% of participants prefer beef burgers • 19% of participants would pay $10 maximum for a burger • 48% of participants would pay no more than $14.99 for a burger • 81% of participants consider having house ground beef used on their burger to either be important or somewhat important • 75% of participants eat burgers for dinner, 65% eat burgers as a midday snack, 9% eat burgers late night
Zagat Burger Survey 2013 (cont.) • Additional Findings
Target Market • Young people (especially college students) ages 17-24 • Young professionals age 24-30 • Our ideal customer is a student or employee wanting a quick, top-quality meal on the go
Target Market Needs/Order Winners • Order Winners • Hours of Operation • From Midday Snack to Late Night Hours (2pm-2am) • Customization • 64% of participants like the build-your-own burger concept • We encourage customer cooking instructions and unlimited toppings for $1 • Quality • 62% of participants cited quality and taste as prime considerations before purchasing a burger • House-ground Angus beef burgers • Price • 19% of participants will not spend more than $10 on a burger • Our burger prices: Single Patty….$6.99, Double Patty….$8.99 • Efficiency/Convenience • Our on the go, drive/walk-thru only model allows us to focus on efficiency and speed of delivery rather than customer service
Process Structure • Manufacturing Process • Deliver premium quality burger • Make to Order Strategy • Freshness and Customer Customization • Small Batch Process Manufacturing • Efficient for low volumes and moderate variety • Repetitive Procedures • Common Inputs • Service Process Structure • Provide efficient and timely delivery • Hybrid Office Structure • Moderate Customer Interaction • Standardized services
Capital Intensity • Rely on workforce rather than machinery and equipment • Low capital intensity • Capital will be functional and efficient • No automated process • Quality will rely on hand crafted skill of workforce • Hand pressed burger patties • Hand cut fries
Resource Flexibility and Customer Involvement • Minimal-Moderate resource flexibility • Equipment serves single primary function • Will respond to changing levels in demand throughout day • Minimal customer involvement outside of ordering process
Quality Strategy - • Initial Capital Investment • Top of the Line Equipment • Extensive Employee Training • High Manager Involvement • Variation of Lean Organizational Strategy
Lean Organizational Strategy - • Overproduction – food made on a made-to-order basis, no finished goods inventory, key for freshness • Inappropriate Processing – low variation of products, specific equipment and raw materials, • Waiting – “runner” during peak hours, organized cooking process • Transportation – shipments daily (but only ordering what’s necessary), confident in forecasting equations • Motion – limited employees, schedule varies according to peak/slow hours, small kitchen area • Inventory – little room for inventory, rely on forecasting, no freezer or microwave, little storage • Defects – extensive training for employees on procedures, use of control charts for monitoring • Underutilization of Employees – treated as a working unit as opposed to individually, paid above average wages to show value
Quality Control • Eliminate defects internally before they become external failures • Managing Inputs – • Triple Inspection Process • Extensive Employee Training • Food Quality – • Limited Menu – able to perfect products we have • Daily Shipments of Ingredients • Cook on a Made-to-Order Basis
Quality Control • Customer Service – • Small, Well-Trained Staff • Schedules Adjusted to Combat Peak Hours • “Runners” when necessary • Use of Control Charts When Applicable • C-Chart to monitor staff order defects
Supplier Relationship • How we thought of Nova Burgers • Quality local ingredients • Buckhead Beef • National recognition Atlanta Olympics • Owned by Sysco
Inventory Management • Determining our supply • 3-5 days of refrigeration • Always fresh never frozen • FIFO • Deliver freshest ingredients whenever possible • 150 pounds daily delivery • 400 regular, 100 Double-Double • Supplier • More is not a problem
Demand Management • Move towards trend progression with regression after year 1 • Use market analysis to predict year 1 demand • Use composite average of comparable companies • Serves approximately 1500 customers daily • Adjust according to: • Base off product offering • Size of establishment • Number of employees • Brand Recognition
