cambridge brewing company lindsey childers saipriya sen kohli juliana salgueiro meredith sciarrio
TRANSCRIPT
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Cambridge Brewing Company
Lindsey ChildersSaipriya Sen KohliJuliana SalgueiroMeredith Sciarrio
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Agenda
Restaurant BackgroundOverview of Current ScenarioObjectives and
Recommendations◦Reduce TAT during peak hours
◦Define and track KPIs and best practices related to food cost
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Background on RestaurantOpened in 1989 and located in Cambridge,
MAOpen 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
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Overview of Current ScenarioTAT is currently high during peak hoursDifficulty handling high volumeLong waits during peak hoursCurrently 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
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Objectives
1) Reduce TAT at peak time by 8 minutes through changes in staffing and work flow process
2) Define and track KPIs and best practices related to food costs
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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)= $17,411Peak hours revenue
80% x Total peak time revenue (80% is approximate amount) = $ 13,929
Peak hours revenue as percentage of weekly revenue = 26%
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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 seconds 720 seconds 180 seconds60 seconds
290 seconds
Peak times:
290 seconds 720 seconds 370 seconds120 seconds
Bottleneck with staff
Bottleneck with staff
Bottleneck in kitchen
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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 290 seconds 720 seconds 370 seconds120 seconds
260 seconds
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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 seconds 370 seconds120 seconds
245 seconds
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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/weekGain: Reduce the assembly process time by 90 seconds
Objective 1: Reduce TAT During Peak Hours
290 seconds
260 seconds
120 seconds290 seconds 720 seconds 370 seconds
245 seconds
30 seconds
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• 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
M T W Th F Sa SuDay 3 3 4 4 5 4 4Night 4 5 5 6 5 5 3
Customers per Server
M T W Th F Sa SuDay 34 34 35 33 29 30 34Night 28 44 52 57 73 89 28
Staffing Proposal
M T W Th F Sa Su
Day 2 2 3 3 3 2 4
Night 2 5 5 7 7 9 5
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Recommendation: Reallocate the front of house staffGain: 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 seconds290 seconds
Peak times:
290 seconds 720 seconds 370 seconds
260 seconds 30 seconds
245 seconds
120 seconds
Proposal process:
245 seconds 720 seconds 180 seconds30 seconds
120 seconds 180 seconds
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Total gain projection
Objective 1: Reduce TAT During Peak Hours
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
None
FROM: 1,790 seconds to 1,295 seconds => Reduction of 495 seconds
or 8 minutes
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Total gain projection: Per peak hour
Objective 1: Reduce TAT During Peak Hours
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
Increase in
revenue
$9,285
Margin22%
$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
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What is Food Cost?
2008
2009
2010
28% 29% 30% 31% 32%
30.00%
31.30%
31.50%
CBC Current 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 salesTotal food and non-alcoholic beverage cost
=
%
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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
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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
Objective 2: Define Food Cost KPIs and Best Practices
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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
Objective 2: Define Food Cost KPIs and Best Practices
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Possible Schedule for Implementation
Responsibility of Head Chef:
Objective 2: Define Food Cost KPIs and Best Practices
M T W Th F Sa Su
Reconcile Variance
Random Spec Audit (once a month)
Midday meeting with Management Team
Inventory
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Questions?
Thank you!