InterNapa College

(Sotira)

Course Title: Management

Restaurant

Operations

Course Lecturer: Prepared by:

Mr.Constantinos Iacovou
1

Sawinder Singh

Contents

I. II. III. IV. V. VI. VII.

Cover page Contents Introduction Marketing and planning activities Planning and design configurations u!!ar" #eferences

page 1 page 2 page 3 page 4-7 page 8-12 page 13 page 14

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Introduction
Pi$$a %ut &as founded in 1'(8) *" t&o *rot+ers in ,ic+ita) -ansas. .rank and /an Carne" +ad t+e idea to open a pi$$a parlor. 0+e" *orro&ed 1233 fro! t+eir !ot+er) and opened t+e ver" first Pi$$a %ut. In 1'(') t+e first franc+ise unit opened in 0opeka) -ansas. 4l!ost ten "ears later) Pi$$a %ut &ould *e serving one !illion custo!ers a &eek in t+eir 313 locations. In 1'73) Pi$$a %ut &as put on t+e 5e& 6ork tock 78c+ange under t+e ticker s"!*ol PI9. In 1'82) Pi$$a %ut introduced deliver" service) so!et+ing no ot+er restaurant &as doing. :" t+e 1''3;s Pi$$a %ut sales +ad reac+ed 14 *illion &orld&ide. In 1''8) Pi$$a %ut cele*rated t+eir 43t+ anniversar") and launc+ed t+eir fa!ous ca!paign <0+e :est Pi$$as under =ne #oof. =ut of all t+e e8isting pi$$a c+ains) Pi$$a %ut +ad t+e largest !arket s+are 42.4>. o let?s discuss and anal"$e t+eir !arketing and sales activities.

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Part A
Marketing and Sales activities
:" increasing t+eir custo!er *ases is pri!e target of pi$$a +ut. :" offering special pro!otions) and ne& pi$$a variations are popular !et+od of t+eir !arketing. .or e8a!ple) c+icken is no& a co!!on topping found on pi$$as. In t+e past) Pi$$a %ut +as al&a"s +ad t+e first !over advantage. 0+eir !arketing strateg" in t+e past +as al&a"s *een to *e first. =ne of t+eir !ain strategies t+at t+e" still follo& toda" is t+e diversification of t+e products t+e" offer. Pi$$a %ut is al&a"s adding so!et+ing ne& to t+eir !enu) tr"ing to reac+ ne& !arkets. Pi$$a %ut is al&a"s tr"ing to co!e up &it+ so!e innovative &a" to !ake a pi$$a into so!et+ing slig+tl" different - different enoug+ t+at custo!ers &ill t+ink it?s a &+ole ne& product. .or e8a!ple) let;s look at so!e of t+e pi$$as Pi$$a %ut +as !arketed in t+e past. In 1'83) Pi$$a %ut introduced t+eir Pan Pi$$a) &+ic+ +ad a guarantee of *eing read" to eat in ( !inutes &+en dining at Pi$$a %ut restaurants. In 1''3) t+e" introduced t+e <:ig.oot)< &+ic+ &as t&o s@uare feet of pi$$a cut into 21 slices. In 1''() t+e" introduced < tuffed Crust Pi$$a)< &+ere t+e crust &ould *e filled &it+ c+eese. In 1''7) t+e" !arketed <0+e 7dge)< &+ic+ +ad c+eese and toppings all t+e &a" to t+e edge of t+e pi$$a. Aastl") Pi$$a %ut +as al&a"s valued custo!er service and satisfaction. In 1''() Pi$$a %ut *egan t&o custo!er satisfaction progra!sB a 1-833 nu!*er custo!er +otline) and a custo!er call*ack progra!. 0+ese &ere i!ple!ented to !ake sure t+eir custo!ers &ere +app") and al&a"s &anted to return. ituational 4nal"sis 4 nu!*er of de!ograp+ic and societal trends in t+e Cnited tates contri*uted to increased de!and for food prepared outside t+e +o!e. .or instance t+ere +as also *een a trend in t+e 1''3;s s+o&ing t+at individuals are c+oosing to eat out !ore often t+an eat at +o!e. 4not+er factor to consider is t+e increased nu!*er of &o!en &orking outside t+e +o!e. In 1''8) ('> of all !arried &o!en +ad careers. 4s a result of !ore &o!en in t+e &orkforce) +ouse+old inco!es are no& co!*ined and are !uc+ +ig+er t+an previousl".

4

0+e co!*ination of +ig+er inco!es and dual-career fa!ilies result in less ti!eD in t+e +o!e) t+erefore less ti!e to cook food at +o!e. i8 !aEor seg!ents !ake up t+e fast food seg!ent of t+e food service industr". and&ic+ c+ains) like Mc/onald and ,end";s are t+e nu!*er one seg!ent) follo&ed *" dinner +ouses) suc+ as 4pple*ee;s and #ed Ao*ster. Pi$$a c+ains are ranked t+ird. =ut of all t+e pi$$a c+ains) Pi$$a %ut +as t+e largest !arket s+are) 42>) follo&ed *" /o!ino;s &it+ 21.7>. International sales +ave *eco!e !ore and !ore i!portant to t+e fast food industr". In 1''8) Pi$$a %ut &as t+e nu!*er one glo*al c+ain &it+ units in 88 different countries. In 1''3) Pi$$a %ut opened t&o restaurants in Mosco& &+ere 23)333 custo!ers &ere served a &eek) a*out t+e a!ount serviced *" 13 4!erican Pi$$a %uts.

5a!e recognition is an o*vious strengt+ for Pi$$a %ut. Pi$$a %ut +as *een around for a long ti!e) and consu!ers kno& t+e na!e &ell. 4not+er *ig strengt+ and even a co!petitive advantage is t+e fact t+at t+e" +ave a full service restaurant as &ell as deliver" services. Most of Pi$$a %ut;s co!petitors do not +ave restaurants. :ecause of t+e restaurant) Pi$$a %ut can !arket to !an" different seg!ents t+at ot+er pi$$a c+ains cannot. .or e8a!ple) Pi$$a %ut can !arket to fa!ilies !uc+ easier t+an /o!ino;s or Aittle Caesar;s. Pi$$a %ut offers a sit-do&n) conversational t"pe restaurant &+ere fa!ilies can take t+eir c+ildren for *irt+da" parties for e8a!ple. Pi$$a %ut;s *road selection of products also !akes it easier for t+e! to !arket to different !arket seg!ents. %o&ever) t+e fact t+at Pi$$a %ut does +ave a restaurant to run is also a &eakness. Pi$$a %ut +as +ig+er over+ead costs) due to t+e restaurant t+at ot+er co!petitors don;t +ave to deal &it+. 4not+er result of +ig+er over+ead costs is +ig+er prices Pi$$a %ut !ust c+arge. =*viousl") Pi$$a %ut is not t+e lo& cost producer. 0+e" rel" on t+eir @ualit" pi$$a and good service to account for t+eir +ig+er prices. 4n indirect &eakness t+at Pi$$a %ut +as is t+at t+e" +ave lost a lot of t+eir custo!ers and !arket s+are due to suc+ intense co!petition &it+ co!petitors. Pi$$a %ut;s opportunities are al!ost endless. 0+e" can increase revenue &it+ t+eir ne& innovative pi$$as) and increase *rand lo"alt" &it+ good custo!er service. 4not+er opportunit" t+at Pi$$a %ut +as is t+eir ne& ordering online s"ste!.

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4n"one &it+ Internet access can order &+atever t+e" &is+ and get it delivered to t+eir +ouse &it+out even speaking to so!eone. 0+is progra! +as Eust *een started) so &e do not +ave an" nu!*ers to support &+et+er or not it &ill *e a success. Pi$$a %ut;s nu!*er one t+reats are fro! t+eir co!petitors. Currentl") t+eir closest co!petitor is /o!ino;s Pi$$a. /o!ino;s !ain co!petitive advantage over Pi$$a %ut is t+eir price. It is generall" lo&er t+an Pi$$a %ut. 4lso) /o!ino;s &as ver" profita*le &+en t+e" ran t+e pro!otional deal of delivering a pi$$a &it+in 33 !inutes. Most if not all t+e top pi$$a c+ains offer free deliver") and al&a"s +ave so!e sort of pro!otional deal offering large pi$$as at reduced prices. =t+er co!petitors to take into consideration are fro$en pi$$as and !ake-it-"ourself pi$$as t+at are purc+ased in grocer" stores. 0+e pi$$a industr" fir!s are fa!ous for introducing ne& products to spark s+ort-ter! sales. Pi$$a %ut as stated earlier +as *een ver" successful at acco!plis+ing t+is. 0+e introduction of a product t+at keeps &it+ toda";s trends is also i!portant to reduce t+e risk of failure. Pi$$a %ut +as t+e resources availa*le to researc+ and i!ple!ent a ne& product &it+ great success. Pi$$a %ut is t+e leader in innovative products and t+is ne& product t+at &e are proposing &ill surel" *e a success) given Pi$$a %uts track record. ,it+ +ig+ co!petition fro! t+e ot+er top fir!s in t+e industr") t+e introduction of a ne& product is necessar" to keep one step a+ead of t+e co!petition. Pi$$a %ut needs to target t+is one seg!ent of t+e !arket. 0+e advertising and pro!otion needs to *e ver" specific to t+eir needs) in order for t+e !one" spent on advertising to *e &ort+&+ile. Man" products +ave failed in t+is seg!ent *ecause t+e" +ave tried to treat t+e seg!ent as one group. 0+is seg!ent is !ade up of !an" groups and !an" individuals. %o&ever) t+is is a +ard !arket to target since ever"one is so different) *ut t+e" all +ave one t+ing in co!!on) t+eir love for pi$$a. 0+e !ost i!portant factor in !aking t+is a success &ill *e to design advertising t+at is a*le to attract all of t+e individual seg!ents of t+ese generations product. Pi$$a %ut +as successfull" used t+e +ig+Flo& pricing strateg" &+en setting t+e retail price of its products. 0+e +ig+Flo& retail pricing strateg" allo&s Pi$$a %ut to c+arge a price t+at is a*ove t+e co!petition) *ut also pro!ote fre@uent sales to lo&er t+e price *elo& t+e!. 0+e +ig+Flo& pricing strateg" &ill also create e8cite!ent.

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Pro!otion is *iggest strateg" of o*Eectives of t+is pro!otion are to introduce a ne& product) sti!ulate de!and) c+ange t+e s+ort-ter! *e+avior of t+e custo!ers) and encourage repeat or greater usage *" current custo!ers. 0+is pro!otion &ill *e distri*uted !ainl" *" !ail) *ut also *" fliers on college ca!puses around t+e countr" in order to reac+ t+e target !arket. /eliver" !et+od is also in placeG Pi$$a %ut a+ead of ti!e) place an order) and t+e order is delivered to t+e custo!er;s +o!e. 4not+er !et+od of distri*ution is for custo!ers to dinein. Custo!ers can go to t+e nearest Pi$$a %ut) place an order) and eit+er leave &it+ t+e order or eat at t+e restaurant. =ne of Pi$$a %ut;s largest co!petitive advantages is its restaurant st"le facilit". Pi$$a %ut offers a clean place to sit do&n and enEo" t+e variet" of pi$$as) salads) and sand&ic+es in a fun) fa!il" at!osp+ere. 0+e t+ird !et+od of distri*ution is online ordering. Custo!ers can no& go on t+e Internet and place an order. 0+is !et+od is useful *ecause it allo&s custo!ers to vie& t+e entire !enu) do&nload an" special coupons) and order &it+out +aving to disclose an" credit card nu!*ers. If *udget allo&s) per+aps &e could give a surve" to our custo!ers and get so!e direct feed*ack a*out our ne& pi$$a. =ngoing researc+ is essential for our success. ince our plan is for one "ear) &e feel t+at ever" 3 !ont+s &e s+ould do so!e t"pe of evaluation and control to see +o& &e are doing.

In t+e conclusion) Pi$$a %ut +as a successful +istor" of introducing ne& products to increase sales and reac+ ne& custo!ers. 0+is introduction of ne& products to t+e !arket on a regular *asis is &+at !akes Pi$$a %ut t+e leader in t+eir industr". Pi$$a %uts uni@ue +ospitalit" !akes people visit again and again.

7

Part B
Planning and Design configurations 0+is topic provides guidelines to assist in planning t+e interior of a Pi$$a %ut restaurant. 0o +elp in t+e planning process) t+e restaurant interior is divided into ( restaurant !odules t+at cover t+e la"out of *ot+ free standing and in line restaurants. Cnderstanding t+e interdependence of t+ese !odules is i!portant to t+e overall planning of a Pi$$a %ut restaurant and t+e efficient e8ecution of Pi$$a %ut econo!ic and econo!ic principles. 4lt+oug+ *uilding construction *egins on t+e outside) t+e planning process for individual restaurants *egins &it+ t+e interior. /eter!ining t+e interior la"out and space re@uire!ents !akes it possi*le to design an e8terior t+at acco!!odates t+e la"out and space re@uired. In t+is section) guidelines are presented for t+e interior !odules t+at !ake up a Pi$$a %ut dine-in restaurant. 0+ese !odules areB

H H H H H

.ood Preparation and Production ervice and 78pediting Custo!er 78perience torage and Clean-up upport paces

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Customer Experience
0+e Custo!er 78perience !odule includes all spaces &+ere custo!ers enter t+e restaurant) are greeted) &ait for a ta*le) enEo" t+eir !eal) or conduct takea&a" transactions. Cnderstanding and i!ple!enting t+e space planning concepts outlined in t+is section are critical to ensuring t+at eac+ custo!er enEo"s a uni@ue :rand e8perience. 0+e goal in t+is restaurant !odule is to create a co!forta*le a!*ience for friends and fa!il" to s+are pi$$a in a rela8ed) fun at!osp+ere. 0+e interior at!osp+ere in t+e restaurant is &+ere t+e Pi$$a %ut :rand 78perience co!es to life !ost vividl" for custo!ers. 0+e follo&ing 8 areas s+ould *e of pri!ar" focus &+en designing t+e ke" Custo!er 78perience $ones &it+in a Pi$$a %ut restaurant. 0+e space planning process includes t+e follo&ing stepsB 1. /eter!ine opti!u! seat count *ased on dining roo! footprint. 2. Aocate t+e kitc+en e8it Iinto dining roo!J and place t+e Pi$$a #un&a". 3. 7sta*lis+ t+e alad :ar place!ent. 4. Place signature +aring :oot+s. (. /efine location of t+e Kat+ering pot. 2. Aa"er in t+e /ispla" /ining 9one 7. :alance &it+ .le8i*le /ining seating. 8. Plan take a&a" e8perience

Entry Zone Pizza Runway Salad Bar Sharing Booths he !athering s"ot #is"lay #ining $le%i&le #ining #edi'ated a(eaway

)

Locate the kitchen exit and place the pi a run!a"
 4fter :=% planning and flo& +as *een esta*lis+ed) locate t+e e8it fro! kitc+enF:=% &+ere servers &ill *ring food into t+e dining roo!.  /efine t+e Pi$$a #un&a" L it s+ould *e t+e !ost direct pat+ *et&een t+e :=% e8it into t+e dining roo! and t+e restaurant !ain 7ntr" 9oneG it functions as t+e pri!ar" pat+&a" t+roug+ t+e dining roo! for *ot+ custo!ers *eing seated and for servers *ringing food fro! t+e kitc+en to t+e custo!ers? ta*les.  If t+e floor plan does not allo& for a straig+t line pat+&a") s+ift focus to !anage t+e custo!ers? sig+t line as t+e" enter t+e restaurant and look past t+e +ost stands.

1*

Seating #uidelines
4c+ieving t+e rig+t nu!*er of seats and !i8 of seats is critical to *uilding and !aintaining a +ealt+" dine-in *usiness. 0+e follo&ing guidelines s+ould *e referenced earl" in t+e planning process &+en considering a specific site or ne& designB H 0+e seating ratio to !eet casual dining standards is 1.( to 1.7 seats per ! for dining areas. H /ining roo!s acco!!odating !ore t+an 133 custo!ers +ave a greater tendenc" to attract dine-in custo!ers. H #e@uired seating capacit" is *ased on proEected peak +our sales and da" per data. H eating t"pe and la"out decisions s+ould *e *ased on a co!*ination of anticipated average group si$e) custo!er !i8) and general design principles for la"ing out an attractive seating environ!ent. H Pi$$a %ut;s &orld&ide e8perience s+o&s t+at in centralFdo&nto&n and *usiness district sites) !an" custo!ers dine alone or in pairs) suggesting t+at a +ig+er nu!*er of deuce ta*les and counter seats is appropriate. H H In lunc+ Markets) seating s+ould *e pri!aril" 2-seaters. In su*ur*an locations or as part of a s+opping centre develop!ent) custo!er !i8 is *roader and tends to include larger parties and fa!ilies &it+ c+ildren) indicating a need for !ore fle8i*le ta*le la"outs t+at can address large and s!all group needs.
H

Providing a variet" of seating t"pes I*oot+s) loose ta*les and c+airs) setteesJ +as *een s+o&n to *e an attractive dra& for custo!ers and increases t+eir overall e8perience satisfaction level.

H

Provide a variet" of ta*le-top options to acco!!odate singles) couples) and large groups) &+ile opti!i$ing ta*le turns. .le8i*le use of 2-top ta*les s+ould allo& "ou to create 4-top and 2-top options.

11

Menu Planning
Menu planning is an i!portant part of t+e ga!e. ,e !ust consider all ages of people) interests) culture) and +a*its. Is t+ere an" special need suc+ as dia*etic) allergic precaution s+ould *e considered too. Moreover !enu s+ould *e attractive and e"e-catc+ing and !ust e8plain contents ver" clearl". Pi$$a +uts +ave ver" e8otic !enu) &+ere veg and non-veg are separated along &it+ starter !enu. 0+ere is *ig c+oice of kid?s !eals and special offer t+roug+ of t+e da".

Summar"
4s &e +ave anal"$ed t+e planning and configurations of interior is i!portant to run t+e operation effectivel") !arketing also pla"s i!portant role as &e cannot attract custo!ers &it+out letting t+e! kno&) M&+o &e are) &+at &e doN. 0+is is ver" co!petitive era) &+ere "ou !ust consider ever" aspect and angle to &in t+e ga!e. .urt+er!ore) good planning of interior) seating plan) kitc+en and !enu &ill increase potential to succeed in *usiness. Pi$$a +uts are &ell a&are of t+ese aspects) and using effective strategies to +andle t+e *usiness and !ake t+eir custo!ers to return again and again. 0+is is t+e reason t+at pi$$a +uts are al&a"s in &inning side.

$eference%
• • • • • • !!!&d'artel&com !!!&economictimes.indiatimes.co! !!!.for*es.co! &&&.pi$$a+ut.co!.c" &&&.pi$$a+ut.co! &&&.scr*id.co!

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