NOVA BURGER

NOVA BURGER

P E T E R J

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NOVA BURGER

Who we are Nova Burger is a drive through, walk up, burger

establishment right here on the mainline. America has been starved of a high quality affordable burgers. With the rapid expansion of McDonald’s, and Burger King and other fast food establishments the quality of quickly made hamburgers went down dramatically. We are here to solve this problem.

Our Mission Nova Burger will redefine what you believe a

hamburger should be, by delivering a quality product in a timely manner.

CORE COMPETENCIES

Friendly and efficient employees that can run a lean system.

Well trained and flexible workers. Flexibility within the roles of our employees

Our ability to differentiate our burgers from our competitors

CORE PROCESSES

Order Fulfillment: Fresh Ingredients Always fresh never frozen Quality that is quick

Customer relationship: Taking pride in our product Serving our customers to the best of our ability Goal is to get new and repeat business

MARKET ANALYSISWhy Burgers?Technomic Report (2011) showcasing burger popularityHalf of Americans eat a burger once a week

95% of people involved in the study say they eat at least one burger a month

ZAGAT BURGER SURVEY 2013Important Findings 64% of participants like the build-your-own burger concept 62% of participants cite meat quality and taste as prime

considerations when purchasing a burger 82% of participants prefer beef burgers 19% of participants would pay $10 maximum for a burger 48% of participants would pay no more than $14.99 for a

burger 81% of participants consider having house ground beef used

on their burger to either be important or somewhat important 75% of participants eat burgers for dinner, 65% eat burgers

as a midday snack, 9% eat burgers late night

ZAGAT BURGER SURVEY 2013 (CONT.)Additional Findings

TARGET MARKET

Young people (especially college students) ages 17-24

Young professionals age 24-30

Our ideal customer is a student or employee wanting a quick, top-quality meal on the go

TARGET MARKET NEEDS/ORDER WINNERSOrder Winners Hours of Operation

From Midday Snack to Late Night Hours (2pm-2am) Customization

64% of participants like the build-your-own burger concept We encourage customer cooking instructions and unlimited toppings for

$1 Quality

62% of participants cited quality and taste as prime considerations before purchasing a burger

House-ground Angus beef burgers Price

19% of participants will not spend more than $10 on a burger Our burger prices: Single Patty….$6.99, Double Patty….$8.99

Efficiency/Convenience Our on the go, drive/walk-thru only model allows us to focus on

efficiency and speed of delivery rather than customer service

PROCESS STRUCTUREManufacturing Process Deliver premium quality burger Make to Order Strategy

Freshness and Customer Customization Small Batch Process Manufacturing

Efficient for low volumes and moderate variety Repetitive Procedures Common Inputs

Service Process Structure Provide efficient and timely delivery Hybrid Office Structure

Moderate Customer Interaction Standardized services

CAPITAL INTENSITY

Rely on workforce rather than machinery and equipment

Low capital intensity Capital will be functional and efficient No automated process Quality will rely on hand crafted skill of

workforce Hand pressed burger patties Hand cut fries

RESOURCE FLEXIBILITY AND CUSTOMER INVOLVEMENT

Minimal-Moderate resource flexibility Equipment serves single primary function Will respond to changing levels in demand throughout

day

Minimal customer involvement outside of ordering process

QUALITY STRATEGY -

Initial Capital Investment Top of the Line Equipment Extensive Employee Training High Manager Involvement Variation of Lean

Organizational Strategy

LEAN ORGANIZATIONAL STRATEGY - 1. Overproduction – food made on a made-to-order basis, no finished

goods inventory, key for freshness

2. Inappropriate Processing – low variation of products, specific equipment and raw materials,

3. Waiting – “runner” during peak hours, organized cooking process

4. Transportation – shipments daily (but only ordering what’s necessary), confident in forecasting equations

5. Motion – limited employees, schedule varies according to peak/slow hours, small kitchen area

6. Inventory – little room for inventory, rely on forecasting, no freezer or microwave, little storage

7. Defects – extensive training for employees on procedures, use of control charts for monitoring

8. Underutilization of Employees – treated as a working unit as opposed to individually, paid above average wages to show value

QUALITY CONTROL

Eliminate defects internally before they become external failures

Managing Inputs – Triple Inspection Process Extensive Employee Training

Food Quality – Limited Menu – able to perfect products we have Daily Shipments of Ingredients Cook on a Made-to-Order Basis

QUALITY CONTROL

Customer Service – Small, Well-Trained Staff Schedules Adjusted to Combat Peak Hours

“Runners” when necessary

Use of Control Charts When Applicable C-Chart to monitor staff order defects

SUPPLIER RELATIONSHIP

How we thought of Nova BurgersQuality local ingredients

Buckhead BeefNational recognition Atlanta OlympicsOwned by Sysco

INVENTORY MANAGEMENT

Determining our supply 3-5 days of refrigeration Always fresh never frozen

FIFO Deliver freshest ingredients whenever possible

150 pounds daily delivery 400 regular, 100 Double-Double

Supplier More is not a problem

DEMAND MANAGEMENT

Move towards trend progression with regression after year 1

Use market analysis to predict year 1 demand

Use composite average of comparable companies Serves approximately 1500 customers daily

Adjust according to: Base off product offering Size of establishment Number of employees Brand Recognition

Comparative Market

Analysis

Trend Progression

DEMAND MANAGEMENT

PRICING DECISION

PRICING DECISION

PRICING DECISION

PRICING DECISION

FULL YEAR FORECAST (2014)

QUESTIONS?