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Cambridge Brewing Company Lindsey Childers Saipriya Sen Kohli Juliana Salgueiro Meredith Sciarrio.

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Presentation on theme: "Cambridge Brewing Company Lindsey Childers Saipriya Sen Kohli Juliana Salgueiro Meredith Sciarrio."— Presentation transcript:

1 Cambridge Brewing Company Lindsey Childers Saipriya Sen Kohli Juliana Salgueiro Meredith Sciarrio

2 Agenda Restaurant Background Overview of Current Scenario Objectives and Recommendations Reduce TAT during peak hours Define and track KPIs and best practices related to food cost

3 Background on Restaurant Opened in 1989 and located in Cambridge, MA Open for lunch weekdays, dinner nightly, and brunch on Saturdays and Sundays Peak shifts: Thursday-Saturday evenings Capacity: 120 seats in restaurant with 80 seasonal patio seats open only May-August Brewmaster, General Manager, and Executive Chef manage day-to-day operations In 2010: $2,869,634 in sales and $498,857 in net income

4 Overview of Current Scenario TAT is currently high during peak hours Difficulty handling high volume Long waits during peak hours Currently dont track food-related KPIs No measure of how they are performing or impacting profits Food cost increasing at a higher rate than revenue growth

5 Objectives 1) Reduce TAT at peak time by 8 minutes through changes in staffing and work flow process 1) Define and track KPIs and best practices related to food costs

6 Objective 1: Reduce TAT During Peak Hours CBC peak hours: Peak time: Thursday, Friday and Saturday Night Peak hours: 6-9pm (3 hours) Peak time revenue (total)= $17,411 Peak hours revenue 80% x Total peak time revenue (80% is approximate amount) = $ 13,929 Peak hours revenue as percentage of weekly revenue = 26%

7 Actual scenario: TAT from the time a customer orders to the time the food arrives is: Total time: 1,200 sec. – 20 minutes Total time: 1,790 sec. – 30 minutes Objective 1: Reduce TAT During Peak Hours 120 seconds Non peak times: 120 seconds720 seconds180 seconds 60 seconds 290 seconds Peak times: 290 seconds720 seconds 370 seconds120 seconds Bottleneck with staff Bottleneck in kitchen

8 Recommendation: Increase the capacity of the grill Burgers represent 28% of food sales Current capacity: 12 burgers at the same time Current cycle time: 1 minute Increase by half the size of grill will allow CBC to produce double the amount of burgers Gain: reduce start of cooking process by 30 seconds Objective 1: Reduce TAT During Peak Hours 290 seconds 720 seconds370 seconds 120 seconds 260 seconds

9 Recommendation: Rearrange the kitchen layout Objective 1: Reduce TAT During Peak Hours 290 seconds 260 seconds Gain: reduce the time to start cooking from counter time by 15 seconds 290 seconds 720 seconds370 seconds120 seconds 245 seconds

10 Recommendation: Include one more employee in the kitchen staff The grill is used for burgers and also for 6 more dishes Only one person is responsible for the grill production and burger assembly, creates bottleneck and increases prep time By having one employee to control the grill and another employee to assemble, they could reduce the production time Cost: $210/week Gain: Reduce the assembly process time by 90 seconds Objective 1: Reduce TAT During Peak Hours 290 seconds 260 seconds 120 seconds 290 seconds 720 seconds370 seconds 245 seconds 30 seconds

11 We defined an optimal ratio (total customers/total shifts) and found that the optimal number of customers per server would be 49. Then, we suggested a new schedule: Recommendation: Reallocate the front of house staff When we analyzed the ratio of server per customers, we identified an discrepancy between non-peak and peak hours Objective 1: Reduce TAT During Peak Hours Staff MTWThFSaSu Day Night Customers per Server MTWThFSaSu Day Night Staffing Proposal MTWThFSaSu Day Night

12 Recommendation: Reallocate the front of house staff Gain: reduce time to enter the order in the system to the non-peak time reduce time of taking the dish in the kitchen and serving to the customers to the non-peak time FROM: 1,790 seconds to 1,295 seconds => Reduction of 495 seconds Objective 1: Reduce TAT During Peak Hours 120 seconds 290 seconds Peak times: 290 seconds720 seconds370 seconds 260 seconds 30 seconds 245 seconds 120 seconds Proposal process: 245 seconds 720 seconds180 seconds 30 seconds 120 seconds180 seconds

13 Total gain projection Objective 1: Reduce TAT During Peak Hours SuggestionDetail Decrease in TAT Investment Add Grill Capacity Increase grill capacity (so that it can take up to 35 patties) 30 seconds$10,000 (one time investment) Additional BOH Staff Hire or increase staffing during peak hours by one person in BOH 90 seconds$ 840 (monthly) Change kitchen layout Reassign coffee and prep counters 15 secondsNone Staffing FOHRedistribute current staffing 360 secondsNone FROM: 1,790 seconds to 1,295 seconds => Reduction of 495 seconds or 8 minutes

14 Total gain projection: Per peak hour Objective 1: Reduce TAT During Peak Hours Total customer Thursday91 Friday97 Saturday119 Additional customer Average check $18.21 $20.45 $18.18 Increase in revenue $220 $365 $289 Total gain projection: 1 month Increase in revenue $9,285 Margin 22% $2,042 Total cost projection: 1 month New grill $10,000 Increase in staff $840 Additional Gains Higher customer satisfaction = lifetime value Shorter lines to be seated during peak hours Increase in server efficiency and attentiveness Higher employee satisfaction

15 What is Food Cost? Industry standard metric that tracks inventory carry costs and profitability Industry standards for successful operations range from 28% to 35% Objective 2: Define Food Cost KPIs and Best Practices Total food and non-alcoholic beverage sales Total food and non-alcoholic beverage cost = %

16 Current Food Cost Control Practices at CBC Quarterly Inventory – performed by chef, not reviewed by owner, and not used as a food cost tracker Menu Changes – 4 to 6 times a year, mostly for seasonality Receiving – all vendors are required to take product to storage area where quality and accuracy checks are performed Chef performs all food prep with the exception of weekends – prep cook is employed to deal with peak times Objective 2: Define Food Cost KPIs and Best Practices

17 Suggested KPIs for Tracking Food Cost Food CostKPI for trackingMetric Description InventoryVariance – allows for tracking waste Comparing theoretical stock to on hand inventory Menu items sold – currently estimated Menu Mix – allows for knowing which menu items are most impactful on profits Tracking actual plates sold expressed in percentage or figure Spec Audits – chef works stations with team VarianceAllows chef to see how items are used Objective 2: Define Food Cost KPIs and Best Practices

18 Suggested Best Practices Best PracticeGain Ensure order accuracy and quality at receiving door before vendor puts away Reduction in overall touch costs Spec Audits done on each kitchen/beverage station and food prep on a random basis Reduction in overall waste, food cost, and touch costs Inventory on a more regular basis More accurate ordering practices, reductions in food carry costs Objective 2: Define Food Cost KPIs and Best Practices

19 Possible Schedule for Implementation Responsibility of Head Chef: Objective 2: Define Food Cost KPIs and Best Practices MTWThFSaSu Reconcile Variance Random Spec Audit (once a month) Midday meeting with Management Team Inventory

20 Questions? Thank you!


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