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Pinkberry, Inc. A franchise upscale frozen dessert restaurant Hathi Nguyen Jordan Drake Kaodi Ugoji Pratima Puttagunta Ram Turaga Claire Helene Orsini.

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Presentation on theme: "Pinkberry, Inc. A franchise upscale frozen dessert restaurant Hathi Nguyen Jordan Drake Kaodi Ugoji Pratima Puttagunta Ram Turaga Claire Helene Orsini."— Presentation transcript:

1 TAT @ Pinkberry, Inc. A franchise upscale frozen dessert restaurant Hathi Nguyen Jordan Drake Kaodi Ugoji Pratima Puttagunta Ram Turaga Claire Helene Orsini HARVARD EXTENSION SCHOOL MGMT – E5060 Operations ManagementSpring 2013 Team Kaizen :

2 What is ? 2  Handcraft Yogurt Bar  Located in Harvard Square  Sell Frozen Yogurts “FroYo”  Seating capacity: 16 customers  Staff: 1shift leader, 5 servers  Gross Sales/year: $1.26M (2012)  Average check: $6.07  Average daily check count : 576

3  Original Frozen Yogurt  Greek Yogurt  Seasonal Frozen Yogurt  Key Lime  Chocolate  Hazelnut  Coconut  Grapefruit  Lychee  Mango  Peach  Pumpkin  Passion-fruit  Strawberry  Pomegranate  Gingerbread The Menu: 1, 2, 3 Steps! 3 Pick your flavor Add your topping(s) Get your FroYo!

4 The “FroYo” Process 4 Inventory (Freezer Storage) Pour pre-mixed solution in the yogurt machine Taking Order + Order Assembly Finish Order --------------------------------- Delivery and Payment Mix the ingredients together in a measuring bucket using a mixer Front CounterKitchen Table Adding Toppings Total Time is 23 min 40s Buffer Low-Fat Milk Flavor powder Low-Fat Yogurt 8 min 40s / peak period 5 min / bucket Topping Bar Fruits cut and Prepare Dry Toppings 10 min / 3 buckets

5 The “FroYo” Process 5 Inventory (Freezer Storage) Pour pre-mixed solution in the yogurt machine Taking Order + Order Assembly Finish Order --------------------------------- Delivery and Payment Mix the ingredients together in a measuring bucket using a mixer Front CounterKitchen Table Adding Toppings Total Time is 23 min 40s Buffer Low-Fat Milk Flavor powder Low-Fat Yogurt 8 min 40s / peak period 5 min / bucket Topping Bar Fruits cut and Prepare Dry Toppings 10 min / 3 buckets

6 6 Customers enter the store Immediately prompt to enter queue Server offers sample and takes order Choice of Toppings Assembly and Payment Customer Experience

7 So what’s the problem? 7

8 8 Customers enter the store Immediately prompt to enter queue Server offers sample and takes order Choice of Toppings Assembly and Payment Turn Around Time LOW DEMAND 1 – 3 people, TAT = 3min Over 7 people, TAT = 8min40s 4 – 6 people, TAT = 5min AVERAGE DEMAND PEAK DEMAND x2 x3

9 9 Topping Serving Counter Register 1Register 2 One Main Queue Seating Area Entrance Tasting Cashier4 Servers 321 Menu Yogurt Machines Counter space for Smoothie 4 Minutes 3 Minutes 30 Seconds1 Minutes 10 Seconds Total TAT: 8 Min 40 Sec Customer Experience at Peak Period

10 10 Voice of Customer *Samples based on survey from 28 customers

11 So How to Improve T.A.T AND Keep Customer Experience ? 11

12 The Bottlenecks at Peak Period 12 Identified bottlenecks: Choosing/tasting FroYo Choosing toppings Payment Process Store Response: Increase servers to 4 Add 1 extra cashier occasionally

13 13 Topping Serving Counter Express Line Register 1Register 2 The Main Queue Seating Area Entrance Tasting Cashier3 ServersServer and Cashier 321 Menu Yogurt Machines Counter space for Smoothie 2 Minutes 3 Minutes 30 Seconds35 Seconds Total TAT: 6 Min 5 Sec Total TAT: 3 Min 55 Sec Recommendations: Option A

14 14 Topping Serving Counter Register 1Register 2 The Main Queue Seating Area Entrance Tasting Area Cashier3 Servers Sampling Staff 321 Menu Yogurt Machines Counter space for Smoothie 2 Minutes 25 s 2 Minutes 10 Seconds 35 Seconds Total TAT: 5 Min 10 Sec Recommendations: Option B

15 du jour 15 Other Value-Add Recommendations  Introduction of Daily Recommendations:  “Special FroYo du Jour”  “Healthy FroYo du Jour”  Separate Free and Premium Toppings

16 Option-AOption-B Delivery at Peak Period (TAT Reduction) Quality (Customer Experience) Cost Gross Sales* Estimated Impact on C-Q-D and Gross Sales 16 Assumption: 70% of the Gross Sales are generated at peak period

17 Hope you had fun… we did! 17 TEAM KAIZEN THANKS YOU! Q&A?

18 ADDITIONAL SLIDES

19 19 Customers enter the store Immediately prompt to enter queue Server offers sample and takes order Choice of toppings and assembly Payment Customer Experience 4 min2m10s1m20s1m10s 8m40s! PEAK DEMAND

20 20 1 District Manager 1 Store Manager 5 Fruit Cutters 5 Shift Leaders 17 Part-Time Members (Servers) The Pinkberry Team Chart

21 Enter Queue:2m FroYo Tasting & Selection: 1m30 Choice of Toppings: 1m Assembly 1m Payment 35s TAT = 6min5s Time gain = 2m35 Enter Queue : 2m Choice of FroYo & Toppings: 20s Order Assembly:1m Payment: 35s TAT = 3min55 Time gain = 4min45s 21 INTRODUCE AN “EXPRESS QUEUE” AND ADD EXTRA CASHIER Recommendations: Option A Express QueueNormal Queue

22 Enter Queue:2m25s FroYo Selection: 10s Choice of Toppings: 1m Assembly 1m Payment35s TAT = 5min10s Time gain = 3min30s 22 INTRODUCING A TASTING AREA, ADD PAYMENT CASHIER Recommendations: Option B Normal Queue TAS TING AREA

23 23 How is competition different? Customer prompt to enter queue Sample tasting Choice of FroYo based flavor Choice of topping --------------------------- Order Assembly Payment Customer prompt to enter queue Sample tasting Choice of FroYo base flavor Payment & AssemblyChoice of topping TAT : 3min / 5 min / 8min40sTAT : 1min / 3min40s / 3min40s >

24 24 Topping Serving Counter Register 1 One Main Queue Seating Area Entrance Tasting Cashier 2 Servers Menu Total TAT: 3 Min 40 Sec Competition: The Berryline Experience 21 Yogurt Machines Local brand Harvard Square Max TaT 3min40 Less demand (never more than 6 customers at a time)

25 25 TodayOption-AOption-B ExpressNormalAvg. TAT*Normal TAT8m 40s3m 55s6m 5s4m 30s5m 10s TAT in seconds520235365270310 % increase in TAT 55%30%48%40% % increase in Gross Sales for Peak Period 48%40% Million Dollar increase in Gross Sales for Peak Period ** 0.430.36 Gross Sales for 2012 (dollar million)1.276 1.701.63 % increase in Gross Sales 33.5927.99 Assumptions * Incoming customers are divided between the two lanes equally ** 70% of the gross sales ($0.893 million) are generated at peak period Detailed Impact of TAT on Gross Sales


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