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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 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 seconds % 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 ** Gross Sales for 2012 (dollar million) % increase in Gross Sales 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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