1. A franchise upscale frozen dessert restaurant
HARVARD EXTENSION SCHOOL
MGMT – E5060 Operations Management Spring 2013
Pinkberry, Inc.
A franchise upscale frozen dessert restaurant
Hathi Nguyen
Jordan Drake
Kaodi Ugoji
Pratima Puttagunta
Ram Turaga
Claire Helene Orsini
Team Kaizen:

2. What is ? 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. The Menu: 1, 2, 3 Steps! Pick your flavor Add your topping(s)
Get your FroYo!
Original Frozen Yogurt
Greek Yogurt
Seasonal Frozen Yogurt
Key Lime
Chocolate
Hazelnut
Coconut
Grapefruit
Lychee
Mango
Peach
Pumpkin
Passion-fruit
Strawberry
Pomegranate
Gingerbread

4. The “FroYo” Process 8 min 40s/ peak period 10 min / 3 buckets
Buffer
Kitchen Table
Front Counter
Topping Bar
Finish Order
Low-Fat Milk
Inventory
(Freezer
Storage)
Mix the ingredients
together in a measuring
bucket using a mixer
Pour pre-mixed solution in the yogurt machine
Taking Order +
Order Assembly
Low-Fat Yogurt
Flavor powder
Fruits cut and Prepare Dry Toppings
Adding Toppings
10 min / 3 buckets
5 min / bucket
Delivery and Payment
Total Time is 23 min 40s

5. The “FroYo” Process 8 min 40s/ peak period 10 min / 3 buckets
Buffer
Kitchen Table
Front Counter
Topping Bar
Finish Order
Low-Fat Milk
Inventory
(Freezer
Storage)
Mix the ingredients
together in a measuring
bucket using a mixer
Pour pre-mixed solution in the yogurt machine
Taking Order +
Order Assembly
Low-Fat Yogurt
Flavor powder
Fruits cut and Prepare Dry Toppings
Adding Toppings
10 min / 3 buckets
5 min / bucket
Delivery and Payment
Total Time is 23 min 40s

6. Customer Experience Assembly and Payment Choice of Toppings
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?
T.A.T!

8. Turn Around Time x3 x2 Over 7 people, TAT = 8min40s PEAK DEMAND
Customers enter the store
Immediately prompt to enter queue
Server offers sample and takes order
Choice of Toppings
Assembly and Payment x2
4 – 6 people, TAT = 5min
AVERAGE DEMAND
1 – 3 people, TAT = 3min
LOW DEMAND

9. Customer Experience at Peak Period
Seating Area
Entrance
Tasting
Cashier
4 Servers 3 2 1
Menu
Yogurt Machines
Counter space for Smoothie
Topping Serving Counter
Register 1
Register 2
One Main Queue
1 Minutes 10 Seconds
3 Minutes 30 Seconds
4 Minutes
Total TAT: 8 Min 40 Sec

10. Voice of Customer
*Samples based on survey from 28 customers

11. So How to Improve T.A.T AND Keep Customer Experience?

12. The Bottlenecks at Peak Period
Identified bottlenecks:
Choosing/tasting FroYo
Choosing toppings
Payment Process
Store Response:
Increase servers to 4
Add 1 extra cashier occasionally

13. Recommendations: Option A
Topping Serving Counter
Express Line
Register 1
Register 2
The Main Queue
Seating Area
Entrance
Tasting
Cashier
3 Servers
Server and Cashier 3 2 1
Menu
Yogurt Machines
Counter space for Smoothie
35 Seconds
3 Minutes 30 Seconds
2 Minutes
Total TAT: 3 Min 55 Sec
Total TAT: 6 Min 5 Sec

14. Recommendations: Option B1 2 3
Counter space for Smoothie
Menu
Yogurt Machines
Cashier
3 Servers
Sampling Staff
Topping Serving Counter
Register 1
Register 2
The Main Queue
2 Minutes 10 Seconds
Tasting Area
35 Seconds
2 Minutes 25 s
Total TAT: 5 Min 10 Sec
Seating Area
Entrance

15. Other Value-Add Recommendations
du jour
Introduction of Daily Recommendations:
“Special FroYo du Jour”
“Healthy FroYo du Jour”
Separate Free and Premium Toppings

16. Estimated Impact on C-Q-D and Gross Sales Option-A Option-B
Delivery at Peak Period
(TAT Reduction)
Quality
(Customer Experience)
Cost
Gross Sales*
48%
40%
34%
28%
Assumption: 70% of the Gross Sales are generated at peak period

17. TEAM KAIZEN THANKS YOU!
Hope you had fun… we did!
Q&A?

18. ADDITIONAL SLIDES

19. Customer Experience PEAK DEMAND Payment
Choice of toppings and assembly
Server offers sample and takes order
Immediately prompt to enter queue
8m40s!
Customers enter the store
4 min
2m10s
1m20s
1m10s

20. The Pinkberry Team Chart
1 District Manager
1 Store Manager
5 Fruit Cutters
5 Shift Leaders
17 Part-Time Members (Servers)

21. Recommendations: Option A
INTRODUCE AN “EXPRESS QUEUE” AND ADD EXTRA CASHIER
Express Queue
Normal Queue
Enter Queue : 2m
Choice of FroYo & Toppings: 20s
Order Assembly: 1m
Payment: 35s
TAT = 3min55
Time gain = 4min45s
Enter Queue: 2m
FroYo Tasting & Selection: 1m30
Choice of Toppings: 1m
Assembly 1m
Payment 35s
TAT = 6min5s
Time gain = 2m35

22. Recommendations: Option B
INTRODUCING A TASTING AREA, ADD PAYMENT CASHIER
Normal Queue
TAS TING AREA
Enter Queue: 2m25s
FroYo Selection: 10s
Choice of Toppings: 1m
Assembly 1m
Payment 35s
TAT = 5min10s
Time gain = 3min30s

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 & Assembly
Choice of topping
>
TAT : 3min / 5 min / 8min40s
TAT : 1min / 3min40s / 3min40s

24. Competition: The Berryline Experience1 2
Menu
Yogurt Machines
2 Servers
Cashier
Local brand
Harvard Square
Max TaT 3min40
Less demand (never more than 6 customers at a time)
Tasting
Topping Serving Counter
Register 1
One Main Queue
Total TAT: 3 Min 40 Sec
Seating Area
Entrance

25. Detailed Impact of TAT on Gross Sales
Today
Option-A
Option-B
Express
Normal
Avg. TAT*
TAT
8m 40s
3m 55s
6m 5s
4m 30s
5m 10s
TAT in seconds
520
235
365
270
310
% increase in TAT
55%
30%
48%
40%
% increase in Gross Sales for Peak Period
Million Dollar increase in Gross Sales for Peak Period **
0.43
0.36
Gross Sales for 2012 (dollar million)
1.276
1.70
1.63
% increase in Gross Sales
33.59
27.99
Assumptions
* Incoming customers are divided between the two lanes equally
** 70% of the gross sales ($0.893 million) are generated at peak period