Strategy for Hidden Grounds

Rutgers Consulting Group

Engagement Preview

Faster Service

Cost Management

Profitability

Location: Easton Ave, New Brunswick

Customer Complaints:1. Reduce Customer Delivery Time2. Lower Prices

Methodology

Process Optimization

Industry Research

Operations Shadowing

Internal Analysis

Proposal Focus Areas

Direct to Customer

EmployeesProcess & Equipment

Primary Goal: Reduce Customer Delivery Time

Orientation: Customer, Employee, Process/Equipment

Direct to Customer

Optimize the seating: Bag hooks

• Customer’s bags blocking open seats

• Foregone sales

• Clutter near register

Solution:

Direct to CustomerOptimize the seating: Bag hooks

Installation Along Perimeter Seating

Problem: Seats used a placeholders for books/bags/purses during busy hours

- Results in more to-go orders, in turn reducing potential secondary sales from seating customers

- Clutter around seating areas near register, slows flow of operations- Estimated that 2 seats are wasted for at least 2 hours each day during peak hours- minimum opportunity cost of $3.95/hr/seat (min $110 per week for 2)

Installation Along Perimeter Seating

Implementation: 1. Order min. 10 - 18 hooks to install between seats (edge of the tables)- Ships in 1-3 business days = $56.05 (10 hooks)

https://www.kegworks.com/checkout/cart/

2. Purchase wood screws appropriate for wooden furniture

- buy in-store = $9.37 (100 pack)

http://www.homedepot.com/p/DeckMate-7-1-1-4-in-Phillips-Square-Flat-Head-Wood-Screws-1-lb-Pack-12125/100348690

3. Install between respective seats

Installation Along Perimeter Seating

Results: greater seating availability, increased secondary sales, less clutter near counter

1st week - Purchase & installation, noticeable difference in available seating, more space around counter

2nd week - opportunity costs turn into potential sales of min. $3.95/seat/hr

3rd week - anticipated secondary sales of over $110 per week

Direct to Customer

Replace the Menu 1. Eliminate the current menu on the shelf (circled in red below). Put

tea caddies on the shelf.

Direct to Customer

Replace the Menu 1. Eliminate the current menu on the shelf (circled in red below). Put

tea caddies on the shelf.

2. Hang 4-5 separate chalkboards in the wooden board.

Cost less than $50Only 1-2 new chalkboards are needed.

Direct to Customer

Market more to Students• Sample products outside Student Center.

• Time frame to results: 1-2 months

“Last Round’s on Grounds!”

10th-Coffee-Free Promotion Card.

Boost Customer Retention.

Builds Customer Loyalty.

Employee Sales Contest

Problem: Employee RetentionWe observed that the staff has potential to achieve more.

Solution: Employee Sales ContestThis solution will fix this problem along with increasing sales, efficiency, and staff camaraderie

Employees

Employee Sales contest (details)

• Implementation: Introduce weekly sales contests to employees to incentive their efforts with a reward, such as a gift card. This can began as soon as you are ready.

• The competition between employees will emerge and they will strive to out work each other and make the most sales per day/week.

• Another twist that can be added to the competition is to focus on selling more profitable items.

• A specific example would be see which barista sells the most lattes or chicken sandwiches per week by recording the sales data and rewarding the winners. This should occur sporadically to increase sales and employee morale/drive.

Employees

Employee Sales Contests: Costs

• Costs: $50 gift card as a cost and 1 hour of time explaining the details of the contest to staff.

• The benefits outweigh the costs because besides the insignificant costs the contest can inspire greater sales, operational efficiency and employee motivation/retention.

Employees

Cleaning Cloth

Problem: Non value add/ Waste of Motion

Solution: Require baristas to carry a bar towel

Employees

Cleaning Cloth

Implementation

Bar towels

ERC Wiping products Inc

One week

$8.50/dozen

“Change Management Plan”

Employees

Problem: Reducing Customer Delivery Time

● This is one of the biggest complaints from customers and needs a multi-pronged approach to being solved

● Sandwich orders are one of the worst offenders with an average prep time of 5.5 minutes for three of the most popular sandwiches (highlighted in red)

Solution: Sandwich Preassembly

● Before opening or during less busy hours, employees would start the preassembly of certain sandwiches

● Then once the orders are in for these sandwiches, the employees would heat them (if necessary) and add finishing touches to sandwiches

● Leaving the final prep steps such as adding the sauces or cheese after the order is in will continue to display to customers that these sandwiches are made fresh and are high quality

The Numbers

Explaining the numbers:

• Let’s take 3 sandwiches that sell best and pre assemble them • Thus cutting the time needed to make these sandwiches once

the customer’s order is in by at least half • Sell 10 of these sandwiches a day• This easy fix can cut off 65 - 100 minutes from POS to delivery

Implementation

Step 1: Have a number of each sandwich pre-assembled and store them in a cool place away from the customer’s immediate view.

Step 2: Put the finishing touches (final steps in assembly) on sandwiches right after the order is in. Heat if necessary.

Step 3: Replenish pre-assembled sandwiches when necessary during less busy hours and tweak the number of pre assembled sandwiches accordingly.

*Notes* Breakfast sandwiches with eggs do not apply because they need to be freshly cracked at the time of order. Data on which sandwiches are most popular at certain times during the day can also make this process more efficient and have employees be better prepared for the busiest hours.

Problem: Reducing Customer Delivery Time

• Same problem, another solution: Eliminating Credit Card purchase signatures under a certain price range (<$25) to get orders in faster and orders fulfilled as soon as possible.

• The Square App allows you to disable customer signatures for card payments under $25, this option to skip the signature screen for small payments is turned off by default but can be adjusted within the app.

• The ability to toggle this option is not available to employees according to the Square website, therefore it is safe and would be done by the manager or owner.

The Numbers

• Eliminating the need for card signatures during busy hours can save approximately 5 seconds during the purchasing process

• If during peak hours the store gets 90 customers in a 1 - 2 hour window, these seconds can add up and save 7.5 minutes

• These 7.5 minutes can be utilized in a better way, the employee could start fulfilling orders instead of standing at the register

• Also, if there is a line at the register, these customers will be able to cut their orders in faster and spend less time on line congesting the register area

When To Use These Solutions: Peak Hours

According to data from Google, the peak times for each day are as follows:• Mondays: 3PM - 5PM• Tuesdays: 4 PM - 6PM• Wednesdays: 2 PM - 4PM• Thursdays: 1PM - 2PM, 5PM - 7PM• Fridays: 5PM - 7PM• Saturdays: 11AM - 1PM, 4PM - 6PM• Sundays 3PM - 6PM

The three busiest hours with the peak amount of customers overall are Saturdays 11AM - 1PM, 4PM - 6PM, Sundays 3PM - 6PM

Problem: Lack of point of sale display

• Solution• Point Of Sale Items: These items are for sale on or adjacent to the cash register.

The intentions of this display is to attract the attention of a customer at the register in order to inspire a last minute purchase or impulse buy.

• Implementation: Add POS display next to register. ASAP.• This would add a new revenue stream for HG and requires minimal efforts and

costs to set up.

POS Display: Costs

• The costs of this display would be the costs of the items for sale and counter space replaced by these items.

• Suggested items: Kind Granola Bars ($18.99/18ct), Marshmallow bars ($30.00/30ct), Packs of gum ($7.49/12 pack), etc.

• The benefit of these items are that they are non-perishable and can sit on the display without expiring.

• These items once bought in bulk can be individually sold for a great margin.

Milk Dispenser

Problem: Non value add/ Waste of Motion

Solution: Introduce a Milk dispensing system

Milk Dispenser

MilkChiller

Air-n-Water

Dispenser & refrigerator

$400

One week

More Serving Baskets, Less Plates

https://www.katom.com/229-975B.html