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 don’t 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
Reduce TAT at peak time by 8 minutes through changes in staffing and work flow process
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. Objective 1: Reduce TAT During Peak Hours
Actual scenario: TAT from the time a customer orders to the time the food arrives is:
120 seconds
Place the order
Enter Order Into System
Ticket Prints In Kitchen
Start Cooking Process
End Cooking Process
Place on Counter
Server takes Dish to Customer
Non peak times:
720 seconds
180 seconds
60 seconds
Total time: 1,200 sec. – 20 minutes
Place the order
Enter Order Into System
Ticket Prints In Kitchen
Start Cooking Process
End Cooking Process
Place on Counter
Server takes Dish to Customer
290 seconds
Peak times:
720 seconds
370 seconds
120 seconds
Bottleneck with staff
Bottleneck in kitchen
Total time: 1,790 sec. – 30 minutes

8. Objective 1: Reduce TAT During Peak Hours
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
Place the order
Enter Order Into System
Ticket Prints In Kitchen
Start Cooking Process
End Cooking Process
Place on Counter
Server takes Dish to Customer
290 seconds
720 seconds
370 seconds
120 seconds
260 seconds

9. Objective 1: Reduce TAT During Peak Hours
Recommendation: Rearrange the kitchen layout
290 seconds
260 seconds
Gain: reduce the time to start cooking from counter time by 15 seconds
Place the order
Enter Order Into System
Ticket Prints In Kitchen
Start Cooking Process
End Cooking Process
Place on Counter
Server takes Dish to Customer
720 seconds
370 seconds
120 seconds
245 seconds

10. Objective 1: Reduce TAT During Peak Hours
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
290 seconds
260 seconds
120 seconds
Place the order
Enter Order Into System
Ticket Prints In Kitchen
Start Cooking Process
End Cooking Process
Place on Counter
Server takes Dish to Customer
720 seconds
370 seconds
245 seconds
30 seconds

11. Objective 1: Reduce TAT During Peak Hours
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
Staff M T W Th F Sa Su
Day 3 4 5
Night 6
Customers per Server M T W Th F Sa Su
Day 34 35 33 29 30
Night 28 44 52 57 73 89
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:
Staffing Proposal M T W Th F Sa Su
Day 2 3 4
Night 5 7 9

12. Objective 1: Reduce TAT During Peak Hours
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
120 seconds
Place the order
Enter Order Into System
Ticket Prints In Kitchen
Start Cooking Process
End Cooking Process
Place on Counter
Server takes Dish to Customer
290 seconds
Peak times:
720 seconds
370 seconds
260 seconds
30 seconds
245 seconds
120 seconds
180 seconds
Place the order
Enter Order Into System
Ticket Prints In Kitchen
Start Cooking Process
End Cooking Process
Place on Counter
Server takes Dish to Customer
120 seconds
Proposal process:
245 seconds
720 seconds
180 seconds
30 seconds
FROM: 1,790 seconds to 1,295 seconds => Reduction of 495 seconds

13. Objective 1: Reduce TAT During Peak Hours
Total gain projection
Suggestion
Detail
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 seconds
None
Staffing FOH
Redistribute current staffing
360 seconds
FROM: 1,790 seconds to 1,295 seconds => Reduction of 495 seconds
or 8 minutes

14. Objective 1: Reduce TAT During Peak Hours
Total gain projection: Per peak hour
Total customer
Thursday 91
Friday 97
Saturday
119
Additional customer 12 13 16
Average check
$18.21
$20.45
$18.18
Increase in revenue
$220
$365
$289
Total gain projection: 1 month
Total cost projection: 1 month
Increase in revenue
$9,285
Margin
22%
$2,042
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. = % Objective 2: Define Food Cost KPIs and Best Practices
What is Food Cost?
Total food and non-alcoholic beverage sales
Total food and non-alcoholic beverage cost
= %
Industry standard metric that tracks inventory carry costs and profitability
Industry standards for successful operations range from 28% to 35%

16. Objective 2: Define Food Cost KPIs and Best Practices
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

17. Suggested KPIs for Tracking Food Cost
Objective 2: Define Food Cost KPIs and Best Practices
Suggested KPIs for Tracking Food Cost
Food Cost
KPI for tracking
Metric Description
Inventory
Variance – 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
Variance
Allows chef to see how items are used

18. Suggested Best Practices
Objective 2: Define Food Cost KPIs and Best Practices
Suggested Best Practices
Best Practice
Gain
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

19. Objective 2: Define Food Cost KPIs and Best Practices
Possible Schedule for Implementation Responsibility of Head Chef: M T W Th F Sa Su
Reconcile Variance
Random Spec Audit (once a month)
Midday meeting with Management Team
Inventory

20. Questions?
Thank you!