y.r.i. confidential august 1, 2012 yri guidance on pizza hut dough commissary
TRANSCRIPT
Y.R.I. Confidential
August 1, 2012
YRI Guidance on Pizza Hut Dough Commissary
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YRI Commissary Classification System
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• Need Accurate Data:– Average Annual Store Sales.– Pies per order ratio– SSSG and Transaction Growth are
averages for all stores– # Stores is the final number after 10 years
• PHD vs PBP mix• Size mix – important to determine dough
weight.• Store Count Forecast
– Based on a 10 year build– Start with Existing number of Stores– Contract Par Baked Pan
Avg Store Sales ($M) 900$ Same Store Sales Growth 2.0%Transactions per store p/week 1,400 Pie to order ratio 1.78 Pies per store per week 2,485 Check Average 12.36$ Transactions Growth 1.0%# of Stores to be served 75
Par Bake PAN % 15%PB PAN Pies per store p/week 373 % of Orders - Large 20.0%% of Orders - Medium 60.0%% of Orders - Small 20.0%
PHD/Mia % 85%PHD Mia Per Store p/week 2,112 % of Orders - Large 45.0%% of Orders - Medium 10.0%% of Orders - Small 45.0%
Store Count ForecastCurrent Store Count 70Year 1 71Year 2 71Year 3 72
Year 4 72Year 5 73Year 6 73Year 7 74Year 8 74Year 9 75Year 10 75System Sales per Store ($M) 900$ Months new stores are open 8
Sales, Transactions, Dough Type
Financial Model - Market Inputs
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• Commissary CAPeX:– Design & Construction; Architectures – Building Equipment; i.e. HVAC, Proofing
Room, & Refrigeration.– Dough Making Equipment; Mixer,
Divider / Rounder, Sheeter, Oven, MD, etc.
– Taxes; Duties will vary by country• Rent; Assumes facility is leased for 10 yr.
Duration. The rate per m2 will be one of the site location criteria.
• Store CAPeX avoidance for new builds only.• New Store rent and depreciation also
predicated on smaller footprint which was assumed to be up to 20%.
Commissary CAPEXDesign & Construction 135,600$ Building Equipment 141,250$ Dough Making Equipment 338,800$ Other Misc Items 36,450$ Taxes 135,520$ Total CAPEX 787,620$ Tax / DutyRate 40.0%Useful Life (Avg Years) 10
Commissary Rent/Utilities ExpenseMonthly Rent 10,000$ Rent Inflation 1.5%Square Meters 600 Rent Expense (Year) 120,000$ Price per Sq Meter 16.67$ Utilitiy Expense per Month 10,000$ Total Utilities Expense (Year) 120,000$
Store CAPEX to be Eliminated w/CommissaryMixer 7,175$ Sheeter 3,050$ Proofer 3,205$ Retarder 2,030$ Other 500$ Total CAPEX 22,344$
Store Rent/Deprec to be Eliminated w/CommissaryNew Store Rent/Deprec -10.0%Note: Savings that each store will realize by not having space for dough equipment in stores.
Financial Model - CAPeX
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Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Commissary CAPEX (788)$
Frige Truck (100)$ Depreciation (add back) 79$ 79$ 79$ 79$ 79$ 79$ 79$ 79$ 79$ 79$
Savings 511$ 554$ 613$ 659$ 722$ 772$ 839$ 894$ 965$ 1,024$ Total (888)$ 590$ 633$ 692$ 738$ 801$ 851$ 918$ 973$ 1,044$ 1,103$
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Commissary CAPEX (788)$
Frige Truck (100)$ Capex savings on new stores 0 22$ -$ 22$ -$ 22$ -$ 22$ -$ 22$
Depreciation (add back) 79$ 79$ 79$ 79$ 79$ 79$ 79$ 79$ 79$ 79$ Savings 1,519$ 1,601$ 1,686$ 1,774$ 1,865$ 1,958$ 2,054$ 2,154$ 2,256$ 2,363$
Total (888)$ 1,598$ 1,702$ 1,765$ 1,875$ 1,943$ 2,059$ 2,133$ 2,256$ 2,335$ 2,464$
Total System - 7 Year IRR 186% 0.39$ Total System - 10 Year IRR 186% 0.47$
0.47$ Commissary - 7 Year IRR 72%
Commissary - 10 Year IRR 74% 16,085$
System NPV ($M) 7,557$ 15%Commissary NPV ($M) 2,591$
Discount Rate
Total System Cash Flow (Commissary + Store Level)
Avg Dough Ball Cost - Commissary Avg Dough Ball Cost - Store BOHAvg Dough Ball Cost - Store BOH with Commissary
Franchisee Avg Savings per store
Financial Summary
Commissary Cash Flow
Financial Model – CF Summary
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C2 – 20 StoresCapacity Calculator – Space Requirements
Enter Estimated Transactions & Product Mix
20 Stores 900 Transactions/wk/store 1.5 Pies Per Transaction 5 days Operating per Week 20% Family Pan 80% Medium Traditional
2,830 Trays Required189 Dollies Required90 Dolly Positions in Cooler
Engineered SolutionC2 – 1 ShiftApprox. 4,950 Sq. Ft.
Outputs estimate of space required
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C2 – 60 StoresCapacity Calculator – Space Requirements
Enter Estimated Transactions & Product Mix
60 Stores 900 Transactions/wk/store 1.5 Pies Per Transaction 5 days Operating per Week 20% Family Pan 80% Medium Traditional
8,500 Trays Required566 Dollies Required270 Dolly Positions in Cooler
Engineered SolutionC2 – 2 ShiftsApprox. 6,900 Sq. Ft.
Outputs estimate of space required
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C2 – 100 StoresCapacity Calculator – Space Requirements
Enter Estimated Transactions & Product Mix
100 Stores 900 Transactions/wk/store 1.5 Pies Per Transaction 5 days Operating per Week 20% Family Pan 80% Medium Traditional
14,150 Trays Required950 Dollies Required450 Dolly Positions in Cooler
Engineered SolutionC2 – 3 ShiftsApprox. 8,200 Sq. Ft.
Outputs estimate of space required
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C2 Future Expansion: 20 Stores - 1 Shift
Estimated 7,820 sq ft of Total Space
435 sq ft Cooler Usage
Tray/Pan Washing
Proofing & Retarding
Par-Baking
Processing
Packaging
175 sq ft Ingredient
Storage Usage
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C2 Future Expansion: 60 Stores – 2 Shifts
Estimated 7,820 sq ft of Total Space
1,100 sq ft Cooler Usage
Tray/Pan Washing
Proofing & Retarding
Par-Baking
Processing
Packaging
336 sq ft Ingredient
Storage Usage
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C2 Future Expansion: 100 Stores – 3 Shifts
Estimated 7,820 sq. ft of
total space
1,700 sq. ft Cooler Capacity
Tray/Pan Washing
Proofing & Retarding
Par-Baking
Processing
Packaging
500 sq ft Ingredient
Storage Usage
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AppendixAppendix
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2007
2008
2009
2010
2011
2012
50 100
150
200
250
300
350
400
450
# of Commissaries
# of PHD’s
21 STORES SUPPORTED
71 STORES SUPPORTED
1 COMMISSARY
3 COMMISSARIES
163 STORES SUPPORTED6 COMMISSARIES
195 STORES SUPPORTED15 COMMISSARIES
338 STORES SUPPORTED*27 COMMISSARIES
500 STORES SUPPORTED32 COMMISSARIES (21 -C1, 11-C2&C4) **
* Data as of October 2011** Includes 2012 forecast
Pizza Hut Commissaries and PHD Stores
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DallasDallas• Define & Develop :
– QA/Sanitation Policies (CCA)– Training Materials (Business Model)– Facility/Ops processes & systems– Commissary Contract
• Approve:– Critical equipment specs– Layout & Workflows
• Review Committee process for exceptions to recommended layout and business model.
• Central Repository for all necessary information (Website)
• Define & Develop :– QA/Sanitation Policies (CCA)– Training Materials (Business Model)– Facility/Ops processes & systems– Commissary Contract
• Approve:– Critical equipment specs– Layout & Workflows
• Review Committee process for exceptions to recommended layout and business model.
• Central Repository for all necessary information (Website)
BMU/FBUBMU/FBU• Field all initial Franchise
commissary requests• Resource to:
– Define 10 year Growth Potential– Cascade & review Financial
Model– Approve Site Selection– Approve Construction of facility
conforming with latest manual– Start-up Support– Make each facility ready for CCA
& STAR audit– Understanding Contractual
Agreements
• Field all initial Franchise commissary requests
• Resource to:– Define 10 year Growth Potential– Cascade & review Financial
Model– Approve Site Selection– Approve Construction of facility
conforming with latest manual– Start-up Support– Make each facility ready for CCA
& STAR audit– Understanding Contractual
Agreements
Commissary Roles and Responsibilities of Dallas vs Field
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Commissary 3-Step Process
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Estimated %Cost / (Savings)
Current Store Level P&L % of Sales w/ CommissaryDough 4.4% 2.0%Dough - Wastage 0.1% -0.1%Cheese 6.0%Vegtables 5.5%Meat 7.2%Packaged Materials 5.0%Other 3.5%Total Cost of Sales 31.7% 1.9%
Cost of Sales Inflation % 2% 0.54$
Management 4.0%Crew - Dough Labor 2.0% -2.0%Crew - Training 3.0% -0.5%Non-Dough Labor/Benefits 9.8%Total COL 18.8% -2.5%Cost of Labor Inflation% 2%
Franchise Fees 6.0%Advertising/Marketing 7.0%Rent/Depreciation Expense 8.0%Electricity 4.2% -0.5%Call Center 3.1%Cleaning/Hygiene 1.1%Surveillance 0.2%Communications 0.2%Propane Gas 0.1%Operating Supplies 1.0%Water 0.9% -0.5%Credit Card Fees 0.5%Maintenance Expenses 0.5%Disposal 0.5%Repair Expense 0.2%Garbage Collection 0.2%Taxes/Government Fees 0.1%Insurance 0.1%Other 0.8%Total Utilities/Other 34.7% -1.0%
Unit Contribution Margin 14.8% 16.4%
Store Level P&L / Savings
Financial Model – Store Level P&L
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• Dough Ingredient Expense based on 100kg batch:– Flour; will vary by
market– Instant Dry Yeast
available locally.– Oil per spec.– Lesaffre improver
• Assumes 3 sizes for both PBP and PHD.
• Store CAPeX avoidance for new builds only.
• Smaller batches will have proportionate ingredient amounts associated.
Commissary Dough ExpenseTotal Pan Production cost per kg kg/batch cost per batchFlour 1.10$ 100.0 110.00$ IDY Yeast 6.35$ 1.0 6.35$ Water -$ 52.0 -$
Oil 2.72$ 1.5 4.08$ Lesaffre NY Improver 3.16$ 4.0 12.65$
Batch weight (kg) 158.5Cost per batch 133.08$
$ per kg 0.840$ Weight Cost
Large (14") 0.625 0.525$ Medium (10") 0.325 0.273$
Small (6") 0.140 0.118$ Average 0.29$
Total PHD Production cost per kg kg/batch cost per batch
Flour 1.10$ 100.0 110.00$ Yeast 6.35$ 0.3 1.71$ Water -$ 52.0 -$ Oil 2.72$ 3.0 8.16$ Lesaffre NY Improver 3.16$ 5.0 15.82$
Batch weight (kg) 160.27Cost per batch 135.69$
$ per kg 0.847$ Weight Cost
Large (14") 0.490 0.415$ Medium (10") 0.245 0.207$
Small (6") 0.140 0.119$ Average 0.26$
Financial Model – Commissary Ingredient Costs
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• This sheet shows one of three 8hr shifts:– Can also be two 10hr
shifts with 4hrs Cleaning & PM.
– Assumes 9 team members. One of whom will be Shift Lead
– Hourly wage will vary. Supervisor 1.5X team member
• General Manager/QA Manager & Admin as full time employees.
• This team member modeling based on 15% PBP. Please refer to Labor Table.
Hourly Wage 6.00$
Third Shift (Up to 75) # of Employees Salary Labor ExpenseMixing 1 17,472$ 17,472$ Cutting & Sheeting 2 17,472$ 42,806$ Proofing - 17,472$ -$ Retarding - 17,472$ -$ Baking 0 17,472$ 5,242$ Packing & Chilling 2 17,472$ 34,944$ Utilities 1 17,472$ 17,472$ Reliever - 17,472$ -$
Supervisor 1 26,208$ 26,208$
Maintenance 1 17,472$ 17,472$ Total 9 161,616$
General Manager 1 50,000 50,000$ QA Manager 1 25,000 25,000$ Training/Uniforms/Benefits 20% 111,970$ Other 1 10,000 10,000$ Total 17 196,970$
First Shift 161,616$ Second Shift 161,616$ Thrid Shift 161,616$ Other Labor 196,970$ Labor Expense 681,818$
Financial Model – Commissary Wages
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• Fridge Truck:– $100,000 CAPeX– $10,000/yr Depreciation.– Labor expense of $10,000/yr could
vary greatly.– R&M costs assumed to be
outsourced but could be internalized with Maintenance Manager
– Insurance $7,500 is just for internal investment.
• Gas Expense assumes daily delivery 6 days per week at average of 500 miles per day driven.
• Outsource Logistics of additional 50% contingency assumed for modelling.
Fridge Truck ExpenseFridge Truck 100,000$ Useful Life (Years) 10 Depreciation Expense (per yr) 10,000 Gas ExpensePrice per Gallon 4.00$ Miles to be driven per day 500 Miles per gallon 10 Gas Expense 62,400$ Total Logistics ExpenseFridge Truck (Depreciation) 10,000$ Gas 62,400$ Outsource % 50.0%Logistics Inflation 5.0%Labor Expense - Driver(s) 10,000$ Labor Expense - Helper(s) -$ Repair/Maintenance 10,000$ Insurance 7,500$ Total Distribution Expense 136,100$
Distribution Inputs
Financial Model – Market Inputs
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FINANCIAL MODEL CF DRIVERS Baseline Product Mix Proximity to City Store Build RateTotal CAPEX $899,000 $1,099,000 $1,052,000 $1,099,000Comments 15% PBP 85% PBP Close to MetroMonthy Rent $5,000 $5,000 $12,000 $5,000Rent Inflation 2% 2% 2% 2%Lease Space (Sq M) 1000 1000 1000 1000Utilities per Month $10,000 $14,000 $15,000 $8,333
Labor Rates per Hour $6 $6 $8 $6General Manager $55,000 $55,000 $55,000 $55,000QA Manager $30,000 $30,000 $30,000 $30,000
Gasoline Prices per Mile $7 $7 $8 $7Average Miles Driven 400 400 200 400Total Truck Cost $200,000 $200,000 $100,000 $200,000
7 Yr IRR 49% 41% 43% 32%10 Yr IRR 55% 48% 50% 43%NPV $3,874,000 $3,505,000 $3,560,000 $2,672,000
Key Cash Flow Drivers
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Fresh Commissary: Equipment
Equipment / Infrastructure
C1(Up to 5 Stores)
Emp Per
Shift
C2 - Manual(6 to 100 Stores)
Emp Per
Shift
C2 - Automatic(75 to 100 Stores)
Emp Per
Shift
C3(Over 100 Stores)
Emp Per
ShiftBatching – Weigh Raw Ingredients
• 10kg (Opt1) or 80kg (Opt2) Batches• Manual weighing
1
• 90kg Batches• Manual weighing
1
• 100kg Batches• Super Sack or Silo
1
• 250kg Batches• Bulk ingredients (Silo)
2Water – Meter & Temp • Manual • Automated Meter • Automated Meter • Automated Meter
Mixing • (1) 60Qt or (1) 200kg Mixer • (1) 200kg Mixer • (1) 200kg Horizontal Mixer
• (2) 400kg Horizontal Mixers
Divider/Rounder • Manual or (1) Divider/Rounder
1
• (1) Divider/Rounder • (1) Divider/Rounder • (2) Divider/Rounders
2
Scale – Dough Ball Weight • Manual •Checkweigher • Checkweigher • (2) Checkweighers
Metal Detection • N/A • Dough Ball or Tray
1 or 2
• Dough Ball or Tray • Dough ball or Tray
Tray Packing • Manual • Manual • Automated • Automated
Oiling (Dough Balls) •Manual (Spray Cans) • Manual (Spray Cans) • Automatic Spray Bar • Automatic Spray Bar
Cold Proofing (48hrs) • Expanded Store Cooler • Standalone Cooler • Standalone Cooler 1 • Standalone Cooler 3
Additional Par-Bake Requirements:Oil Pan • Manual
1 or2
• Manual
3
• Automated Spray Bar
1
• Automated Spray Bar
1
Sheeting • (1) or (2) Sheeters • (2) Sheeters • Automated Conveyor • (2) Sheeters
Place in Pan • Manual • Manual • Automated • Automated
Proofing • 1 hour on racks • 1 hour
3 or 4
• Continuous Conveyor • Continuous Conveyor
Retarding • 1 hour on racks • Up to 2 hours • N/A • N/A
Oven • Existing Store Oven, Off Hours• Operators load/unload• 20 to 60 minutes per batch
• (3) Ovens • Operators load/unload• 60 minutes per batch
• Continuous Conveyor • Continuous Conveyor
Cooling • Open air cooling • Open air cooling1
• Spiral Chilled Cooling • Spiral Chilled Cooling1
Packing (2 Per Bag) • Manual Packaging • Manual Packaging • Automated Packaging • Automated Packaging
Pan/Tray Washing • End of Shift 0 • Continuous 2 • Continuous • Continuous 3
Total Employees: 3-4 Total Employees: 11-13 Total Employees: 3 Total Employees: 12
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Assumptions: C1 C2 - Manual C2 - Automatic C3Kilograms Per Hour of Capability 48 to 330 kg/hr 430 kg/hr 475 kg/hr 2,400 kg/hr
Number of Dough Balls Per Hour 112 to 1,350 Dough Balls/hr
1,000 to 1,750 Dough Balls/hr
1,120 to 1,940 Dough Balls/hr
5,650 to 9,800 Dough Balls/hr
Number of Batches Per Day 3 to 22 Batches/Day 3 to 46 Batches/Day 32 to 42 Batches/Day Up to 80 Batches/Day
Number of Supported Stores Up to 5 6 to 100 75 to 100 Up to 285
Transactions Per Store Per Week 900 900 900 900
Ratio of Pies Per Store Transaction 1.5 1.5 1.5 1.5
Operating Hours 5 to 8 hrs per day, 6 days/wk
Up to 24 hrs per day, 6 days/wk
16 hrs per day, 6 days/wk
10 hrs per day, 6 days/wk
Product Mix Pan – 20% Traditional – 80%
Pan – 20% Traditional – 80%
Pan – 20% Traditional – 80%
Pan – 15% Traditional – 85%
Sizes Pan – 12” Family Traditional – 10” Medium
Pan – 12” Family Traditional – 10” Medium
Pan – 12” Family Traditional – 10” Medium
Pan – 12” Family Traditional – 10” Medium
Number of Full-Time Employees 3 or 4 11 to 39 6 12
Level of Automation Low Moderate High High
Shelf Life of Dough Ball at 2 to 4ºC 4 to 5 Days 4 to 5 Days 4 to 5 Days 4 to 5 Days
Estimated Square Footage 515 Sq. Ft. to 830 Sq. Ft.(Incremental to Typical 745
Sq. Ft. Store)4,875 Sq. Ft. to 7,820 Sq. Ft. 16,500 Sq. Ft. 56,700 Sq. Ft.
Estimated Equipment InvestmentIncludes Racks, Pans, Trays, etc.Building Construction & Install Additional
$140M $375M to $710M $3MM to $4MM $5MM to $6MM
Fresh Commissary: Assumptions
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Fresh Commissary: Capital Estimates
Equipment / InfrastructureC1
(Up to 5 Stores)
C2 - Manual(6 to 100 Stores)
C2 – Auto(75 to 100 Stores)
C3 - Auto(Over 100 Stores)
Batching – Weigh Raw Ingredients $3,500 $5,500 $75,000 to $1,020,000 $1,237,000
Water – Metering & Temp. Control $4,000 $8,000 $8,000 $16,000
Mixing $25,000 $25,000 $180,000 $360,000
Divider/Rounder $30,000 $30,000 $130,000 $260,000
Scale – Dough Ball Weight Verification $500 $30,000 $60,000 $100,000
Metal Detection --- $30,000 $60,000 $100,000
Tray Packing (Includes Trays/Dollies) $10,125 $44,200 to $224,325 $356,000 $610,000
Oiling (Dough Balls) $1,000 $2,500 $15,000 $15,000
Cold Proofing (48hr Refrigeration) $18,000 $26,000 to $67,000 $67,000 $290,000
Additional Par-Bake Requirements:
Oil Pan $500 $2,500 $20,000 $25,000
Sheeting $12,000 $12,000 $85,000 $200,000
Place in Pan (Includes Pans/Lids) $6,000 $25,000 to $48,600 $250,000 $555,000
Proofing (Includes Racks) $14,550 $20,000 $250,000 $350,000
Retarding (Includes Racks) $2,050 $23,500 --- ---
Oven Store Oven $39,375 $350,000 $450,000
Cooling (Includes Racks/Trays) $6,275 $14,200 $400,000 $500,000
Packing (2 Per Bag, Includes Trays/Dollies) $6,500 $17,225 to $87,500 $300,000 $537,000
Pan/Tray Washing Store Washer $20,000 to $40,000 $120,000 $170,000
TOTAL (Building & Install Additional) $140M $375M to $710M $3MM to $4MM $5MM to $6MM
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Fresh Commissary: Capability Comparison
C1(Up to 5 Stores)
C2 - Manual(6 to 100 Stores)
C2 – Auto(75 to 100 Stores)
C3 - Auto(Over 100 Stores)
Bulk Ingredients
Water Metering/Temperature Control
Divider/Rounder
Metal Detection
Manual Tray packing
Automatic Tray Packing
Manual Dough Ball Oiling
Automatic Dough Ball Oiling
Manual Sheeting
Automatic Sheeting
Manually Place in Pan
Automatically Place in Pan
Rack Proofing
Conveyor Proofing
Conventional Restaurant Oven
Conveyor Oven
Chilled Cooling
Up to 330 kg/hr
Up to 430 kg/hr
Up to 475 kg/hr
Up to 2400 kg/hr
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Traditional
Par-Baked Pan
Add Ingredients
Warm Bowl
Mix
Divide & Round
Load Hopper Verify Weight
Place in Tray and Spray with Oil
Sheeting
Let Dough Rest minimum of 3 minutes
Place in Pan and Spray edges with Oil
Proof & Retard
Add Perforated Pan
Bake 3 minutes
Place on Cooling Tray
Temper 30min
Package in Bags
Store & Ship
Process Flow - Typical
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• Water Metering – Automate temperature controlled water delivery to remove manual measurement with flow meter, load cells, etc.
• Sheeting Throughput – Increase capacity of sheeters to reduce manpower, floor space, and bottlenecking.
• Pan Oiling – Automate pan oiling with wiper or spray arm to remove manual pumping and pan rotation for coverage.
• Pan Denesting/Stacking – Automate processes of staging pan, adding lid, stacking and racking pans for Proofing.
• Proofing and Retarding – Spiral accumulation and singulation to/through Retarding. Consistent timing for continuous Proofing/Retarding process.
• Right Size Oven - Maximize throughput to match continuous dough ball/pan speed. Eliminate Retarding time by oven outrunning
production and going directly from Proofing to Oven.
Real Opportunities for Innovation
vs.
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C1 – Option 1(See Appendix)
C1 – Option 2(See Appendix)
C2 – Manual(See Appendix)
C3 – Automatic(See Appendix)
Process Flow
C2 – Automatic(See Appendix)
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Manual Dividing/Rounding• Batch must be Divided/Rounded within 20 minutes• 6 pcs/min per employee• One employee• 90 to 150 kg/hr
3-10min Rest
Proof 1hr
Retard 1 to 2hrs
Note: Equipment specification for example only.
Tempering30min
Store1 Day
4 Day Store
Shelf Life
Cold Proof 48hrs
5 Day Store
Shelf LifeTraditional:
C1 – Option 1Sized for 5 Stores8 hours of production
C1 Equipment Optimization
20min Max
(1) Hobart HL662 Mixer
• 10kg Batches Pan Family Pies 37Traditional 10” 64• 48 kg/hr
Par-Baked Pan:
(1) Doyon DFP18 Sheeter• 3-10 min Rest• Batch processed within 10 minutes• 8pcs/min per machine• 200 kg/hr
(1) Middleby Marshall PS555 Oven
• 2.5 to 3 minute bake time• Batch processed within 20 minutes• Pies per/hr per Oven:
Family 131• 55 kg/hr
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C1 – Option 2Sized for 5 Stores5 hours of production
(1) AM S302 Divider/Rounder
• Batch must be Divided/Rounded within 20 minutes• 30pcs/min per machine capacity• 440 to 765 kg/hr
(2) Doyon DFP18 Sheeters• 3-10 min Rest• Batch processed within 30 minutes• 8pcs/min per machine• 408 kg/hr
Proof 1hr
Retard 1 to 2hrs
(1) Middleby Marshall PS555 Oven
• 2.5 to 3 minute bake time• Batch processed within 60 minutes• Pies per/hr per Oven:
Family 131• 55 kg/hr
Note: Equipment specification for example only.
Tempering30min
Store1 Day
4 Day Store
Shelf Life
5 Day Store
Shelf Life
Par-Baked Pan:
C1 Equipment Optimization
Traditional:20min Max
Cold Proof 48hrs
3-10min Rest
(1) Thunderbird ASP-200 Mixer
• 80kg Batches Pan Family 188Traditional 10” 517• 380 kg/hr
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C2 Sized for Up to 100 StoresUp to 24-hour Production
(1) Automated Scale• Check weight of every dough ball• 30pcs/min per machine• 440 to 765 kg/hr
(1) Thunderbird ASP-200 Mixer
• 90kg Batches Pan Family 335Traditional 10” 582• 142 to 427 kg/hr
(1) AM S300 Divider/Rounder
• Batch must be Divided/Rounded within 20 minutes• 30pcs/min per machine capacity• 440 to 765 kg/hr
(2) Doyon DFP18 Sheeters• 3-10 min Rest• Batch processed within 30 minutes• 8pcs/min per machine• 408 kg/hr
(3) Middleby Marshall PS555 Ovens
• 2.5 to 3 minute bake time• Batch processed within 20 minutes• Pies per/hr per Oven:
Family 131• 167 kg/hr
20min MaxCold Proof
48hrs
Par-Baked Pan:
Proof 1hr
Retard 1 to 2hrs
Tempering30min
Store1 Day
4 Day Store
Shelf Life
Note: Equipment specification for example only.
C2 Equipment Optimization - Manual
Traditional:5 Day Store
Shelf Life
3-10min Rest
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C2 Sized for Up to 100 StoresUp to 24-hour Production
(1) Automated Scale • Check weight of every dough ball• 33pcs/min per machine minimum• 440 to 765 kg/hr
(1) Horizontal Mixer
• 100kg Batches Pan Family 372Traditional 10” 647• 475 kg/hr
(1) Divider/Rounder• Batch must be Divided/Rounded within 20 minutes• 33pcs/min per machine minimum• 485 to 841 kg/hr
(2) Sheeters• 3min Rest (conveyor)• Continuous processing• 17pcs/min per machine minimum• 867 kg/hr
Continuous Proofer & Conveyor Oven
• 2.5 to 3 minute bake time• Batch processed within 20 minutes• Pies per/hr: Family 1,116• 475 kg/hr
20min MaxCold Proof
48hrs
Par-Baked Pan:
Proof 1hr
Tempering30min
Store1 Day
4 Day Store
Shelf Life
Note: Equipment specification for example only.
C2 Equipment Optimization - Automatic
Traditional:5 Day Store
Shelf Life
3min Rest
Metal Detection
Metal Detection
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C3 Sized for 100+ Stores24-hour Production
(2) Horizontal Mixers• 250 kg Batches Pan Family 932Traditional 10” 1617• 2,400 kg/hr
(2) Divider/Rounders• Batch must be Divided/Rounded within 20 minutes• 100 pcs/min per machine capacity• 2,940 to 5,100 kg/hr
(2) Automated Scales • Check weight of every dough ball• 100 pcs/min per machine• 2,940 to 5,100 kg/hr
(2) Sheeters• 3min Rest (conveyor)• Continuous processing• 100pcs/min per machine minimum• 5,100 kg/hr
20min MaxCold Proof
24hrs
Par-Baked Pan:
Proof 1hr
Tempering30min
Store1 Day
4 Day Store
Shelf Life
Note: Equipment specification for example only.
C3 Equipment Optimization
Traditional:5 Day Store
Shelf Life
3min Rest
Metal Detection
Metal Detection
Continuous Proofer & Conveyor Oven
• 2.5 to 3 minute bake time• Batch processed within 20 minutes• Pies per/hr: Family 5,592• 2,400 kg/hr
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C1 – Option 1(See Appendix)
C1 – Option 2(See Appendix)
C2 – 20 Stores(See Appendix)
C2 – 60 Stores(See Appendix)
C3 – Automatic(See Appendix)
Conceptual Commissary Layouts
C2 – 100 Stores(See Appendix)
C2 – Automatic(See Appendix)
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C1 Layout – Option 1
C1 – Option 1(1) Hobart 60Qt Mixer Manual Dividing/Rounding(1) Sheeter(1) Oven (Store Oven, Off Hours)(4) Estimated Employees
Additional 515 sq. ft. built out from typical store
Utilize Store Oven during
Off Hours
Additional 116 sq. ft. of
Cooler Space
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C1 Layout – Option 2
C1 – Option 2(1) Thunderbird 200kg Mixer(1) AM Divider/Rounder(2) Sheeters(1) Oven (Store Oven, Off Hours)(3) Estimated Employees
Additional 830 sq. ft built out from typical store
Utilize Store Oven during
Off Hours
Additional 142 sq. ft of
Cooler Space (Storage & Retarding)
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C2 Layout
C2 – 20 Stores(1) Thunderbird 200kg Mixer(1) AM Divider/Rounder(2) Sheeters(3) Ovens(11) Estimated Employees
Estimated 4,875 sq. ft. of Total Space
435 sq. ft. Cooler Capacity
Proofing & Retarding
Packaging
Tray/Pan Washing
Par-Baking
Processing
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C2 Layout
C2 – 60 Stores(1) Thunderbird 200kg Mixer(1) AM Divider/Rounder(2) Sheeters(3) Ovens(26) Estimated Employees
Estimated 6,665 sq. ft of
total space
1,100 sq. ft Cooler Capacity
Tray/Pan Washing
Proofing & Retarding
Packaging
Par-Baking
Processing
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C2 Layout
C2 – 100 Stores(1) Thunderbird 200kg Mixer(1) AM Divider/Rounder(2) Sheeters(3) Ovens(39) Estimated Employees
Estimated 7,820 sq. ft of
total space
1,700 sq. ft Cooler Capacity
Tray/Pan Washing
Proofing & Retarding
Par-Baking
Processing
Packaging
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C2 Automatic Layout
C2 – 100 Stores(1) 200kg Horizontal Mixer(1) Divider/Rounder(2) Sheeters(1) Continuous Proofer/Oven(6) Estimated Employees
Estimated 16,500 sq. ft of
total space
1,700 sq. ft Cooler Capacity
Tray/Pan Washing
Packaging & Metal Detection
Bulk Ingredients
Processing
Proofing
Tray Packing & Metal Detection
Par-Baking
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C3 Layout
C3 – 100+ Stores(2) Horizontal Mixers(2) Divider/Rounders(2) Sheeters(1) Continuous Proofer/Oven(12) Estimated Employees
5,615 sq. ft Cooler Capacity
Estimated 56,700 sq. ft of
total space
Tray/Pan Washing
Par-Baking
Packaging
Processing
Proofing
Bulk Ingredients
Sheeting
Cooling
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C1 - 5 Stores - 22 Batches/Day60Qt MIXER (7) 10kg Family Pan Batches (15) 10kg Traditional 10" Batches
BatchingDivide/RoundRest (3-10min)Sheeting
Proofing
Retarding
OvenCooling
Packaging
C1 - 5 Stores - 3 Batches/Day200kg MIXER (1) 70kg Family Pan batch (2) 80kg Traditional 10" Batches
BatchingDivide/RoundRest (3-10min)SheetingProofingRetardingOvenCoolingPackaging
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs
C1 – Option 1(1) Hobart 60Qt Mixer Manual Dividing/Rounding(1) Sheeter(1) Oven (Store Oven, Off Hours)
C1 – Option 2(1) Thunderbird 200kg Mixer(1) AM Divider/Rounder(2) Sheeters(1) Oven (Store Oven, Off Hours)
C1 Production Time Study
Traditional
Par-Bake
Traditional
Par-Bake
1 ShiftUp to 5 Stores22 Batches/Day4 Employees
1 ShiftUp to 5 Stores3 Batches/Day3 Employees
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C2 - 20 Stores - 10 Batches/Day200kg MIXER, MINIMUM OVENS (3) (3) 90kg Family Pan batches (7) 90kg Traditional 10" Batches
BatchingDivide/RoundRest (3-10min)SheetingProofingRetarding
OvenCooling
Packaging
C2 - 60 Stores - 28 Batches/Day200kg MIXER, MINIMUM OVENS (3) (9) 90kg Family Pan batches (19) 90kg Traditional 10" Batches
BatchingDivide/RoundRest (3-10min)SheetingProofingRetarding
OvenCooling
Packaging
C2 - 100 Stores - 46 Batches/Day200kg MIXER, MINIMUM OVENS (3) (14) 90kg Family Pan batches (32) 90kg Traditional 10" Batches
BatchingDivide/RoundRest (3-10min)SheetingProofingRetarding
OvenCooling
Packaging
C2 – Option 1(1) Thunderbird 200kg Mixer(1) AM Divider/Rounder(1) Automated Scale(2) Sheeters(3) Ovens
C2 Manual Production Time Study
TraditionalPar-Bake
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs 11hrs 12hrs 13hrs 14hrs 15hrs 16hrs 17hrs 18hrs 19hrs 20hrs 21hrs 22hrs 23hrs 24hrs
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs 11hrs 12hrs 13hrs 14hrs 15hrs
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs
1 ShiftUp to 20 Stores10 Batches/Day11 Employees
2 ShiftsUp to 60 Stores28 Batches/Day26 Employees
3 ShiftsUp to 100 Stores46 Batches/Day39 Employees
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C2 - 100 Stores - 42 Batches/DayOVENS TO MATCH BATCH SIZE (13) 100kg Family Pan Batches (29) 100kgTraditional 10" Batches
BatchingDivide/RoundRest (3-10min)Sheeting
Proofing
Retarding
OvenCooling
Packaging
C2 – Optimization(1) Thunderbird 200kg Mixer(1) Divider/Rounder(1) Automated Scales(2) Sheeters(9) Ovens
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs 11hrs 12hrs 13hrs 14hrs
C2 Manual Production Labor Optimization
Traditional
Par-Bake
15hrs
Optimize Oven Size
2 ShiftsUp to 100 Stores42 Batches/Day30 Employees
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C2 Auto - 100 Stores - 42 Batches/DayOVEN/COOLING TO MATCH BATCH SIZE (13) 100kg Family Pan Batches (29) 100kg Traditional 10" Batches
BatchingDivide/RoundRest (3-10min)SheetingProofing
OvenCoolingPackaging
C2 – Automatic(1) 200kg Horizontal Mixer(1) Divider/Rounder(2) Automated Scales(2) Sheeters(1) Continuous Proofer/Oven(1) Spiral Cooler(1) Automated Bagger/Tray Packer(1) Automated Dough Ball Tray Packer
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs 11hrs 12hrs 13hrs 14hrs
C2 Automatic Production Time Study
Traditional
Par-Bake
15hrs
2 ShiftsUp to 100 Stores42 Batches/Day6 Employees
16hrs
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C3 - 285 Stores - 47 Batches/Day400kg MIXERS - TWO BATCHES AT A TIME (14) 250kg Family Pan batches (33) 250kg Traditional 10" Batches
BatchingDivide/RoundRest (3-10min)SheetingProofing
OvenCoolingPackaging
1hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs 9hrs 10hrs 11hrs 12hrs
C3 Production Time Study
Traditional
Par-Bake
1 Shift285 Stores47 Batches/Day12 Employees
C3 – 100+ Stores(2) Horizontal 400kg Mixers(2) Divider/Rounders(2) Automated Scales/Metal Detectors(2) Sheeters(1) Continuous Proofer/Oven(1) Spiral Cooler(1) Automated Bagger/Tray Packer(1) Automated Dough Ball Tray Packer
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Commissary Cost Comparison
Item Unit Cost C1 - Opt 1 C1 - Opt 2 C2 - 20 Stores C2 - 60 Stores C2 - 100 Stores C2 - Auto C3 - AutoBatch Water Meter $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $8,000Ingredient Scales $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $4,000Mixer $25,000 $16,750 $25,000 $25,000 $25,000 $25,000 $180,000 $360,000Divider/Rounder $30,000 --- $30,000 $30,000 $30,000 $30,000 $130,000 $260,000Automated Scale $30,000 --- --- $30,000 $30,000 $30,000 $60,000 $60,000Metal Detector $30,000 --- --- $30,000 $30,000 $30,000 $60,000 $60,000Sheeters $6,000 $6,000 $12,000 $12,000 $12,000 $12,000 $85,000 $125,000Conveyors Varies --- --- --- --- --- $390,000 $780,000Proofers Varies $25,000 $13,500 $13,500 $13,500 $13,500 $250,000 $350,000Retarders Varies $40,000 Use Cooler $18,000 $18,000 $18,000 --- ---Ovens $15,000 Store Store $37,500 $37,500 $37,500 $350,000 $450,000Spiral Chiller Varies --- --- --- --- --- $300,000 $500,000Packaging Varies --- --- --- --- --- $300,000 $300,000Cooler Varies $15,000 $16,000 $26,000 $52,000 $66,000 $66,000 $200,000Equipment Total $108,750 $102,500 $228,000 $254,000 $268,000 $2,177,000 $3,457,000
Work Tables $750 $2,500 $2,500 $5,500 $5,500 $5,500 $5,500 $5,500Tray Washer/Dryer $20,000 Store Store $20,000 $20,000 $40,000 $120,000 $170,000Sinks $5,000 $1,000 $1,000 $5,000 $5,000 $5,000 $5,000 $15,000Hose Stations $1,500 --- --- $4,500 $4,500 $4,500 $4,500 $7,500Trays/Dollies/Racks Varies $20,000 $25,000 $83,000 $205,000 $335,000 $335,000 $740,860Pans/Lids $25 $6,500 $6,500 $25,000 $48,000 $48,000 $48,000 $155,000Bulk Ingredients Varies --- --- --- --- --- $1,000,000 $1,205,000Ancillary Total $30,000 $35,000 $143,000 $288,000 $438,000 $1,518,000 $2,298,860
Equipment & Ancillary Total $138,750 $137,500 $371,000 $542,000 $706,000 $3,695,000 $5,755,860