Morrin Carlin, Griffin Coakley, Brendan Dwyer, Hannah McCarty, Lawrence Sang MA SHACK

Mission Statement Mac Shack aims to serve delicious and creative macaroni and cheese dishes with a number of variations to meet the numerous preferences of our customers. Mac Shack will focus on convenience and affordability, as service will be quick and easy, and prices will be low in comparison to our competitors. Our restaurant will exhibit a warm atmosphere that brings to life the home-style cooking of our dishes. Our goals are to be profitable, achieve reasonable growth, and become a local favorite as a niche restaurant.

Corporate Strategy  Popular food for college students  Convenient and affordable  Strong customer service  Revenue can grow quickly  Potential for large profit margins  Can create variety of dishes  Opening of other mac and cheese restaurants or other late night dining  Very little reputation  may be difficult to get customers right away  No guaranteed cash flow from operations  Can be replaced by another niche restaurant SW O T

Competition Late night dining options that target college students –Campus Corner, Winger’s, Domino’s Establishments that serve a niche food item –PB&U, Peace A Pizza, Meltdown

Market Analysis Population = 31,531 Number of Students = 24,000 8 Colleges and Universities

Target Market Amanda 25 year old Bryn Mawr College graduate Marketing consultant living and working in Wayne Does not have large budget after paying rent, loans, and bills Gets an hour off for lunch Ideal lunch destination is close, offers quick service, fairly inexpensive Greg 21 year old senior at Villanova Lives off campus Works part time Involved in campus activities Goes out with friends at night to Main Line bars Usually orders a snack with her friends when he gets home

Competitive Priorities Low Cost Operations –Efficient cooking processes –Scraps allocated appropriately –Negotiate costs with suppliers Consistent & High Quality –Well trained employees to maintain the Mac Shack Experience –Modern yet chic atmosphere –High quality ingredients Customization –“Craft Your Own Mac” menu option Development Speed –December’s “Mac Creation” Volume Flexibility –Cognizant of our target market’s schedules to better anticipate demand fluctuations

Core Competencies and Processes Skilled Workforce –Well trained in all front line operations including serving the food, working the register, and waiting on customers Quick and Consistent Delivery –Processing orders as efficiently as possible

Menu Selection

Quality Strategy & Control Strategy –Customer satisfaction –Minimization of defects –Lean System  Avoiding overproduction  Appropriate inventory levels  Effective utilization of employees  Culture of continuous improvement Control –Input Quality  Careful selection of suppliers –Goods & Services Quality  Clean and organized work space/equipment  Control Charts

C-Chart for Daily Complaints

Supply Chain Inventory Management Main Suppliers: American Italian Pasta Company Coca-Cola Kraft Foods Hanover Foods Continuous Review System

Variable Costs and Profits Cost of food products very low Menu items fairly inexpensive Weekly revenue = $ Weekly variable cost = $ Weekly profit = $ Annual profit = $36,799

Fixed Costs Maintenance = $5,000/yr Marketing = $5,000/yr Rent = $30,000/yr Utilities = $4,500/yr Wages –Behind the counter employees (6) – 20 hrs/week, $9.50/hr –Cooks (2) – 30 hrs/week, $11/hr Total weekly fixed costs = $1, Total annual fixed costs = $71,540

Startup Costs Kitchen equipment = $25,230 8 tables with 4 chairs each = $4,160 Construction costs = $15,000 Training = $5,000 POS system = $5,000 Marketing = $26,000 Starting inventory = $1, Other miscellaneous expenses = $1,368 Total startup costs = $83,632.88

Total First Year Profits Projected Variable Profit$36,799 Fixed Costs$71,540 Operating Profit -$ 34,741 Startup Costs$83, Total First Year Profits-$118,373.88

Conclusion Fills a void in the market Specialized product Expected growth will facilitate increase in profits Local favorite