Morrin Carlin, Griffin Coakley, Brendan Dwyer, Hannah McCarty, Lawrence

Sang

MASHACK

Mission Statement• Mac Shack aims to serve delicious and creative

macaroni and cheese dishes with a number of variations to meet the numerous preferences of our customers.

• Mac Shack will focus on convenience and affordability, as service will be quick and easy, and prices will be low in comparison to our competitors.

• Our restaurant will exhibit a warm atmosphere that brings to life the home-style cooking of our dishes.

• Our goals are to be profitable, achieve reasonable growth, and become a local favorite as a niche restaurant.

Corporate Strategy

Popular food for college students

Convenient and affordable Strong customer service

Revenue can grow quickly Potential for large profit

margins Can create variety of

dishes

Opening of other mac and cheese restaurants or other late night dining

Very little reputation may be difficult to get customers right away

No guaranteed cash flow from operations

Can be replaced by another niche restaurant

S W

O T

Competition• Late night dining options that target college

students– Campus Corner, Winger’s, Domino’s

• Establishments that serve a niche food item– PB&U, Peace A Pizza, Meltdown

Market Analysis

Population = 31,531Number of Students

= 24,0008 Colleges and

Universities

Target MarketAmanda• 25 year old Bryn Mawr

College graduate• Marketing consultant

living and working in Wayne

• Does not have large budget after paying rent, loans, and bills

• Gets an hour off for lunch• Ideal lunch destination is

close, offers quick service, fairly inexpensive

Greg• 21 year old senior at

Villanova• Lives off campus• Works part time • Involved in campus

activities• Goes out with friends at

night to Main Line bars• Usually orders a snack

with her friends when he gets home

Competitive Priorities

• Low Cost Operations– Efficient cooking processes – Scraps allocated appropriately – Negotiate costs with suppliers

• Consistent & High Quality– Well trained employees to maintain the Mac Shack Experience – Modern yet chic atmosphere– High quality ingredients

• Customization– “Craft Your Own Mac” menu option

• Development Speed– December’s “Mac Creation”

• Volume Flexibility– Cognizant of our target market’s schedules to better anticipate demand

fluctuations

Core Competencies and Processes

• Skilled Workforce– Well trained in all front line operations including serving the

food, working the register, and waiting on customers

• Quick and Consistent Delivery– Processing orders as efficiently as possible

Menu Selection

Quality Strategy & Control

• Strategy– Customer satisfaction– Minimization of defects– Lean System

Avoiding overproduction Appropriate inventory levels Effective utilization of employees Culture of continuous improvement

• Control– Input Quality

Careful selection of suppliers– Goods & Services Quality

Clean and organized work space/equipment Control Charts

C-Chart for Daily Complaints

0 1 2 3 4 5 6 7 80

2

4

6

8

10

12

14

Daily ComplaintsLCLUCLNominal Line

Days

Num

ber

of C

ompl

aint

s

Supply Chain Inventory

Management• Main Suppliers:

American Italian Pasta Company Coca-ColaKraft FoodsHanover Foods

• Continuous Review System

Variable Costs and Profits

• Cost of food products very low• Menu items fairly inexpensive• Weekly revenue = $812.85• Weekly variable cost = $105.18• Weekly profit = $707.67• Annual profit = $36,799

Fixed Costs• Maintenance = $5,000/yr• Marketing = $5,000/yr• Rent = $30,000/yr• Utilities = $4,500/yr• Wages

– Behind the counter employees (6) – 20 hrs/week, $9.50/hr– Cooks (2) – 30 hrs/week, $11/hr

• Total weekly fixed costs = $1,375.77• Total annual fixed costs = $71,540

Startup Costs• Kitchen equipment = $25,230• 8 tables with 4 chairs each = $4,160 • Construction costs = $15,000• Training = $5,000• POS system = $5,000• Marketing = $26,000• Starting inventory = $1,874.88• Other miscellaneous expenses = $1,368• Total startup costs = $83,632.88

Total First Year Profits

Projected Variable Profit $36,799

Fixed Costs $71,540

Operating Profit -$34,741

Startup Costs $83,632.88

Total First Year Profits-

$118,373.88

Conclusion• Fills a void in the market

• Specialized product

• Expected growth will facilitate increase in profits

• Local favorite