1. Curt Clauss, Connor Fallon, Jacqueline Froccaro, Chelsea Strauser

2. Company Overview Mission: “making delicious, handmade Italian creations quick and personal” Fast-casual dining experience featuring quick bake wood-fired pizzas and personalized salads Focus on fresh, local ingredients Process Pizza or salad Ingredient decision Wood-fired oven (3 minutes) Payment Pickup (Dine-In or Take-Out)

3. Environmental Scanning Strengths: Quick process Relationships with local farmers and producers Personalization Ingredient flexibility during different seasons Healthy options Opportunities: Potential in expansion to products other than pizza or salads Potential in collaboration with a larger variety of local producers If successful, opportunity to open more than one location Weaknesses: No delivery service Limited menu (only pizzas and salad) Menu based on what is in season - some popular ingredients may not be available at certain times of the year Wait time for pizza could become longer during busy hours Threats: Competitive environment (Jules Thin Crust, Crust, Peace A Pizza, Domino's, Chipotle) Price competition Loss of buying power with suppliers in comparison to larger competitors SWOT Analysis

4. Organization Strategy Core Processes The ability to provide the customer with the ingredients he or she desires The production of an end product without a long wait Core Competencies Quality Highest quality ingredients Flexibility Ingredient options Time 3 Minutes for baking, plus line decision time Efficiency Cost Least control over cost Market price of ingredients To combat: relationships with suppliers

5. Market Analysis Market Segment Villanova Area (Wayne to Wynnewood) More than 100,000 people Target Market Educated adults in the Villanova area, ages 18-40 Busy individuals who seek a high-quality meal Appreciate local ingredients and gourmet food

6. Competitive Priorities Must possess to satisfy internal and external customers Provide a quality product that is easily accessible at a fair price Differentiation in pizza market – optimizing fast casual Fresh ingredients, unique options, interactive experience

7. Products Offered Salad Pizza Dessert Pizza Select Beverages

8. Operations Strategy Processes Behind Products and Services Make-to-Order High customer contact Service Process Front-Office Customer-Contact Flexible work and resource flows Manufacturing Process Assemble-to-Order

9. Quality Strategy Achieving constant customer satisfaction and serving high quality food at all times. Distinguish ourselves with Most variety Freshest toppings Unique customer experience Best customer service Lean System Goal: maximize the value of products offered in the restaurant by eliminating waste to core processes Implementing the 5s Method

10. Supplier Input and Selection Location Reliability Review Value Quality

11. Suppliers Dough will be made in house Fresh, quality product Economic efficiency All other whole ingredients are purchased from suppliers such as wholesalers and farmers

12. Suppliers - General Prima Foods, a Baltimore based wholesaler, will provide meats, sauces, spices, and other general ingredients Orders will be made every 3 weeks Company requires a minimum of $300 Diverse selection of product, allowing FP to be flexible

13. Suppliers – Local Cheeses and produce will be supplied by local farmers Allow restaurant to distinguish itself from generic competition Allows product offerings to coincide with the seasons Ensures fresh and top- quality product Many farms located in Lancaster County, PA

14. Order Determination Our business is centered around a highly individualized product and thus we must have a responsive supply chain Nonperishable items can be purchased in bulk and stored Pizza sauce, cheese, meats, and salad ingredients will be bought using tight inventory management Being efficient and minimizing lead times is essential to maintain high quality ingredients and a great product

15. Demand Little historical data, basing demand off of other restaurants Closest comparable eateries include Chipotle and Domino’s Estimated 100 - 175 customers per day Prepare food accordingly

16. Future Demand Forecasting After a few weeks of sales, we will be able to use our data to form a historical forecasting model This, along with managements determinations, can effectively forecast our future business and Firenze Pizza will become more efficient with time. Because of our numerous product combinations, the best future demand forecast system for us is a weighted moving average. We can assign weights to our products by their popularity to maximize the efficiency of our ordering process

17. Queue Management The best way to manage order queues is to be efficient in the ordering and cooking process The pizza will be made in a stage process where: 1) person selects dough 2) cheese and meat selection 3) topping selection and sent to the oven. After the pizza is put into the oven, the customer will move onto the paying station and will wait a maximum of 3-5 minutes for their pizza The salad selection will have their own separate salad bar and paying station to avoid long lines

18. Fixed Costs (Start up)

19. Fixed Costs (Annual) ANNUAL EXPENSES Labor: $260,000 ($5,000 a week for 12 employees) Utilities: $6,600 ($550 a month for electricity and gas) Wood: $9,000(two cords per month, $375 per cord) Rent: $48,000 ($4,000 per month for 1,400 square feet) Pizza ingredients: $70,000 (flour, tomatoes, etc.) Toppings: $50,000 (pepperoni, peppers, etc.) Miscellaneous: $20,000 Total................. $463,600

20. Variable and Fixed Costs (monthly basis) Revenue $ 47,145.00 Monthly Variable Costs: Ingredients $ 5,833.00 Toppings $ 4,166.00 Wages $ 16,667.00 Utilities $ 550.00 Supplies $ 1,000.00 Miscellaneous $ 1,666.00 Total Variable Costs $ 29,882.00 Contribution Margin $ 14,784.00 Monthly Fixed Costs: Rent $ 4,000.00 Insurance $ 583.00 Salaries $ 3,333.00 Advertising $ 500.00 Miscellaneous $ 335.00 Total Fixed Costs: $ 8,751.00 Net Income: $ 8,512.00 Expected Monthly Variable Cost: $ 29,882.00 Expected Monthly Fixed Costs: $ 8,751.00

21. Estimated Revenue REVENUE From pizza: $427,750 (40,000 Unlimited Pizzas at $9.95, 10,000 Unlimited Salads at $7.95, 5,000 Unlimited Dessert Pizzas at $5.95, and 30,000 soft drinks at $1.95). Total gross........... $565,750 Annual profit........... $102,150 (revenue of $565,750 minus expenses of $463,600) Note: In Year 1, we expect to make a profit of $48,950 on account of startup costs of $53,200. However, after Year 1, we foresee an annual expected profit of $102,150 as a very attainable yearly profit.

22. Pricing Decision Pizza Illimitato: $9.95 Insalata Illimitato: $7.95 Bevande: $1.95 Dolce Pizza Illimitato: $5.95

23. Deconstruction of Pricing Decision COST TO MAKE AN AVERAGE ILLIMITATO PIZZA Cheese $1.00 Tomatoes: $0.30 Dough: $0.25 Salt: $0.01 Olive oil: $0.70 Basil: $0.30 Additional Toppings: $1.00 Total.................. $3.56/pie Cost to customer............$9.95 Markup per pie............$6.39

24. Conclusion : Bryn Mawr, PA provides an ideal target market with strong growth potential for a fast-casual Italian restaurant such as Firenze Pizzeria