Curt Clauss, Connor Fallon, Jacqueline Froccaro,

Chelsea Strauser

Company Overview• Mission: “making delicious, handmade Italian creations quick

and personal”• Fast-casual dining experience featuring quick bake wood-fired

pizzas and personalized salads• Focus on fresh, local ingredients• Process• Pizza or salad• Ingredient decision• Wood-fired oven (3 minutes)• Payment• Pickup (Dine-In or Take-Out)

Environmental Scanning

Strengths:• Q

uick process

• Relationships with local farmers and producers

• Personalization

• Ingredient flexibility during different seasons

• Healthy options

Opportunities:• P

otential in expansion to products other than pizza or salads

• Potential in collaboration with a larger variety of local producers

• If successful, opportunity to open more than one location

Weaknesses:• N

o delivery service

• Limited menu (only pizzas and salad)

• Menu based on what is in season - some popular ingredients may not be available at certain times of the year

• Wait time for pizza could become longer during busy hours

Threats:• C

ompetitive environment (Jules Thin Crust, Crust, Peace A Pizza, Domino's, Chipotle)

• Price competition

• Loss of buying power with suppliers in comparison to larger competitors

SWOT Analysis

Organization Strategy• Core Processes• The ability to provide the customer with the ingredients he or she

desires• The production of an end product without a long wait

• Core Competencies• Quality

• Highest quality ingredients• Flexibility

• Ingredient options• Time

• 3 Minutes for baking, plus line decision time• Efficiency

• Cost• Least control over cost• Market price of ingredients• To combat: relationships with suppliers

Market Analysis• Market Segment• Villanova Area (Wayne to Wynnewood)• More than 100,000 people

• Target Market• Educated adults in the Villanova area, ages 18-40• Busy individuals who seek a high-quality meal• Appreciate local ingredients and gourmet food

Competitive Priorities

• Must possess to satisfy internal and external customers• Provide a quality product that is easily

accessible at a fair price • Differentiation in pizza market – optimizing fast

casual• Fresh ingredients, unique options, interactive

experience

Products Offered

• Salad• Pizza• Dessert Pizza• Select Beverages

Operations Strategy• Processes Behind Products and Services• Make-to-Order

• High customer contact

• Service Process• Front-Office Customer-Contact

• Flexible work and resource flows

• Manufacturing Process• Assemble-to-Order

Quality Strategy• Achieving constant customer satisfaction and serving high

quality food at all times.• Distinguish ourselves with• Most variety• Freshest toppings• Unique customer experience• Best customer service

• Lean System• Goal: maximize the value of products offered in the restaurant by

eliminating waste to core processes• Implementing the 5s Method

Supplier Input and Selection• Location• Reliability• Review• Value• Quality

Suppliers

• Dough will be made in house• Fresh, quality product• Economic efficiency

• All other whole ingredients are purchased from suppliers such as wholesalers and farmers

Suppliers - General• Prima Foods, a Baltimore

based wholesaler, will provide meats, sauces, spices, and other general ingredients• Orders will be made every

3 weeks• Company requires a

minimum of $300 • Diverse selection of

product, allowing FP to be flexible

Suppliers – Local • Cheeses and produce will

be supplied by local farmers • Allow restaurant to

distinguish itself from generic competition

• Allows product offerings to coincide with the seasons

• Ensures fresh and top-quality product

• Many farms located in Lancaster County, PA

Order Determination

• Our business is centered around a highly individualized product and thus we must have a responsive supply chain• Nonperishable items can be purchased in bulk and

stored• Pizza sauce, cheese, meats, and salad ingredients will be

bought using tight inventory management• Being efficient and minimizing lead times is essential to

maintain high quality ingredients and a great product

Demand• Little historical data,

basing demand off of other restaurants• Closest comparable

eateries include Chipotle and Domino’s• Estimated 100 - 175

customers per day• Prepare food

accordingly

Future Demand Forecasting• After a few weeks of sales, we will be able to use our data to

form a historical forecasting model• This, along with managements determinations, can effectively

forecast our future business and Firenze Pizza will become more efficient with time.

• Because of our numerous product combinations, the best future demand forecast system for us is a weighted moving average.• We can assign weights to our products by their popularity to

maximize the efficiency of our ordering process

Queue Management• The best way to manage order queues is to be efficient in the

ordering and cooking process• The pizza will be made in a stage process where: 1) person

selects dough 2) cheese and meat selection 3) topping selection and sent to the oven.

• After the pizza is put into the oven, the customer will move onto the paying station and will wait a maximum of 3-5 minutes for their pizza

• The salad selection will have their own separate salad bar and paying station to avoid long lines

Fixed Costs (Start up)

Fixed Costs (Annual)

ANNUAL EXPENSESLabor: $260,000 ($5,000 a week for 12 employees)

Utilities: $6,600 ($550 a month for electricity and gas)Wood: $9,000(two cords per month, $375 per cord)

Rent: $48,000 ($4,000 per month for 1,400 square feet)Pizza ingredients: $70,000 (flour, tomatoes, etc.)

Toppings: $50,000 (pepperoni, peppers, etc.)Miscellaneous: $20,000

Total . . . . . . . . . . . . . . . . . $463,600

Variable and Fixed Costs (monthly basis)

Revenue $ 47,145.00 Monthly Variable Costs:Ingredients $ 5,833.00 Toppings $ 4,166.00 Wages $ 16,667.00 Utilities $ 550.00 Supplies $ 1,000.00 Miscellaneous $ 1,666.00 Total Variable Costs $ 29,882.00 Contribution Margin $ 14,784.00

Monthly Fixed Costs:Rent $ 4,000.00 Insurance $ 583.00 Salaries $ 3,333.00 Advertising $ 500.00 Miscellaneous $ 335.00 Total Fixed Costs: $ 8,751.00 Net Income: $ 8,512.00

Expected Monthly Variable Cost: $ 29,882.00

Expected Monthly Fixed Costs: $ 8,751.00

Estimated Revenue • REVENUE

From pizza: $427,750 (40,000 Unlimited Pizzas at $9.95, 10,000 Unlimited Salads at $7.95, 5,000 Unlimited Dessert Pizzas at $5.95, and 30,000 soft drinks at $1.95).Total gross . . . . . . . . . . . $565,750 Annual profit . . . . . . . . . . . $102,150 (revenue of $565,750 minus expenses of $463,600)• Note: In Year 1, we expect to make a profit of $48,950 on account of

startup costs of $53,200. However, after Year 1, we foresee an annual expected profit of $102,150 as a very attainable yearly profit.

Pricing Decision• Pizza Illimitato: $9.95• Insalata Illimitato: $7.95• Bevande: $1.95 • Dolce Pizza Illimitato: $5.95

Deconstruction of Pricing Decision

COST TO MAKE AN AVERAGE ILLIMITATO PIZZACheese $1.00 Tomatoes: $0.30Dough: $0.25Salt: $0.01Olive oil: $0.70Basil: $0.30Additional Toppings: $1.00Total . . . . . . . . . . . . . . . . . . $3.56/pieCost to customer . . . . . . . . . . . .$9.95Markup per pie . . . . . . . . . . . .$6.39

Conclusion : Bryn Mawr, PA provides an ideal target market

with strong growth potential for a fast-casual Italian

restaurant such as Firenze Pizzeria