Business operation in the food industry is unique. The operation differs in a number of issues relating to operations, strategy formulation, daily operations and process implementation process. It is also important to mention that process improvement in the food industry differs greatly from the manufacturing or shop-set up. In this paper, Pizza Delicacy Solomon’s isCafe is an a popular anonymous restaurant operating in the US food industry sector.
The procedures and processes mentioned may not really have taken place but the paper presents a typical idea situation that a firm under such a position may develop and implement new line of product introduction in its menu. 1. Background Pizza Delicacy Solomon’s hasCafe has been operating successfully in the US food industry. The firm operates a number of stores across the US. Basically, the firm has concentrated its product offering to preparation of sandwiches for walk-in customers. The success of offering sandwich as a breakfast product has improved over the years.
In fact, the firm presently is synonymous with sandwiches just like Dorman’s Restaurants Starbucks isare synonymous for Coffee. 1. 2 Basic operations management Pizza delicacy Solomon’s Cafe as mentioned provides one line of breakfast product to its customers. The firm has been selling Sandwiches for the last three years. The firm offers assorted sandwiches to its customers. In this case, the firm prepares chicken sandwiches, Beef Sandwiches, Cheese Sandwiches and Tuna Sandwiches. Therefore, as far as variety was considered, the customers simply chose from the various types of sandwiches under display.
Preparation of sandwiches is done in a two hour process. All the bread is sourced from our sister Bakery. Currently, Pizza Bbakery a sister company supplies the restaurant with bread. Bread is delivered a day before is intention to preparation to a sandwich. In addition, our sandwiches have cucumber slices and tomato as part of the contents. The cucumber slices and tomato are cut at the restaurant. Thus preparation of sandwich involves three individuals. The first individual cuts the bread and smears margarine.
The second individual arranges cucumber slices and tomato slices alternating and adds the sandwich within the cut area. The last individual mechanically wraps the sandwich ready for storage. 2. 0 Second product line introduction strategy The firm plans to improve market share and hence customer loyalty. This is being considered in relation to introducing a new product line. The management of the firm has been thinking about introducing a new line of products to the firm. Some of the moving forces towards introducing new products have been the brand name and that the customer loyalty the firm has built over the years.
According to the management, it would be a noble idea to introduce a new line of product for breakfast. The basis for this operational plan is that introducing new line of breakfast products will have two fold benefits for the firm. First the firm will give the customers a variety to choose from in satisfying their needs. The other benefit is that the restaurant will be in a position to serve potential customers who do not like sandwiches but can go for anything else. 2. 1 Operations and supply strategy for expansion The management recognizes that new product introduction is a challenging process.
However, the present infrastructure and systems can successfully support a new product line. Therefore, the firm will purchase new equipments required to make the new product in case the present equipments do not support (Lynn & Lynn, 2009). In addition, the firm is contemplating either recruiting new staff that has the necessary training on preparation of the new product line or taking an existing staff back to a Food and Beverage college to obtain the necessary training. The latter is being more favored than the former. Depending on the product choice supply chain will be formulated.
For instance, a product that can be commercially baked without any needed finishing like sandwiches will be baked centrally and distributed to the various stores (Henkel, 2007). The normal stock transfer documentations will apply. On the other hand, in case the product is labor intensive like sandwiches, each of the stores will individually make their own products. However, product preparation and processes will be standardized and documented for uniformity. 2. 2 Project management strategy Choosing a new product line for introduction is not an over the night decision.
A firm must plan earlier in advance and assess all the benefits and challenges that are bound to take place. In recognizing that, Pizza Delicacy Solomon’s Cafe stores will appoint a team of individuals to assess views from the employees as well as studying the market to ascertain the type of product that customers wants including market deficiency of the product. This team of individual will compile data and actively present their views on the product proposal. Even after the product proposal has been adopted, this team will further be involved in the implementation and control of the implementation process of the product. . 3 New product line and rationale for selection The selection of the new product will depend on a number of issues. First, the level of market demand derived from the market research. The firm will seek to exploit an opportunity that exposes impressive product idea other factors held constant. Secondly, the logistics involved in making such a product ready to sell. It is not noble to introduce a product that is very expensive to assemble and bring into the market provided the product cannot recoup the costs associated with the logistics (Brown, 2003).
Moreover, the durability of the new product line will be an important issue. In this regard, the firm has a number of floated product ideas. They include Danish, Croissant or Egg Omelet on the other side. The firm chooses Danish over all the other products floated. Danish is more durable than sandwiches. In addition the product can be produced centrally and distributed to the other stores conveniently other factors held constant. . 3. 0 Process 3. 1 Strategic capacity management The firm has being operating in the market for three years now.
Therefore the firm has learnt customer behaviors and trends. Prior to introducing the product, a message will be conveyed to the current customers of the firm’s intention. The customers will be requested to give views on the product before and after they have consumed it. The goal is to estimate the quantities that each store will be operating in. this is to prevent the possibility of wastages related to overproduction and supply (FoodServiceFoodservice Resource Associates, 2010). At first, the firm will work with introductory quantities for a shorter time say two weeks.
The customer trends will then be studied and recommendation on the optimal quantity to b made and stocked. 3. 2 Production process Since the firm lacks the capacity in the short-term to make dough and roll fruits into Danish, the firm will rely on purchasing frozen raw dough rolled into Danish. Once this procured, the staff of the firm will bake the Danish which on being cooled will be wrapped in a paper mechanically. It is assumed that at least two employees know how to bake Danish into high quality levels. In the long term, the firm will open its department to include rolling Danish from dough. . 3 Service process The firm will continue pursuing the service of walk-in clients. As mentioned, the present customers will be informed about the product prior to introduction. This will be mad to increase their curiosity and possibly utilize the word of mouth to increase market knowledge about the planned new product. The firm will continue offering over the counter service. However, additional orders will be service at the table. The aim is to increase customer service on the client. 3. 4 Quality process In food industry, hygiene is of prominence importance.
These are the guideline for quality. In this regards, the firm will continuously train its employees about the importance of food hygiene. In this case, the firm will discourage answering of phones within food production area and packing area. Moreover, the firm will introduce several hand washing wall-fixed basins to improve hygiene. In the case of service to customer, all employees will be trained on courtesy and etiquette of handling a customer and also handling customer complaints. Impressive grooming will be adhered to within all stores of the firm.
This is done to give the customer the value belief that their foods are handled well and safely. 4. 0 Supply Chain 4. 1 Sourcing and Logistics As mentioned, the firm will in the short-term, purchase raw frozen Danish pieces for baking at the firm. This is due to the lack of capacity to preparing raw Danish dough within the form. However, within four months, the firm will prepare Danish dough within the house. Danish will be prepared centrally at one base kitchen production area since the product is durable and easy to make (Fullen, 2005). The logistics involved in this product is enormous in nature.
As mentioned, the firm will produce the Danish from a centralized place. From here the Danish will be transported to the various store openings of the firm. Any logistics system should allow a firm to deliver the products cost-effectively (Brown, 2003). Therefore, after production, the Danish will be sorted into stores that must be supplied. Once this done, the stores are going to be supplied using the company refrigerated van. The timing and delivery schedule will depend on the distance and store needs. Road transport is the moist efficient mode. 5. 0Enterprise Resource Planning Systems . 1 Sales and operations planning The product being new will be under trial basis. The team appointed to overlook the implementation of the new production implementation will be reliable to collecting sales data. In the same manner, this product being a new product, depending on how it is received in the market, the sales department will make decisions pertaining to increasing the production or cutting back on production. 5. 2 Demand management Demand management refers to the processes the firm will undertake to ensure the product fairs well in the market.
Demand management refers to the tactics that the management will introduce to create interest among customers (O’Fallon ; Rutherford, 2011). In business it may call for sacrificing revenues in order to generate demand. For instance, the firm will introduce a promotional campaign in the first days of introduction of the product. Some rewarding ploies that the firm will utilize are Buy One Danish get another absolutely free. The firm will employ the services of marketing agents to spread the necessary information about the product.
In addition, loyal customers present a new opportunity to try out Danish. The opinions of the customers will be sough an in case there is a necessary rectification on taste, size, shape or even the packing, all relevant departments will obtain a suggestion for improvement. 5. 3 Inventory control Inventory management is very critical to achieving profitability. Figures produced and sold will assist the firm in analyzing the data and drawing analysis charts for decision making about trends. Each o the stores will indicate a different sales capacity.
The trend established will assist the inventory control officer to analysis the returns and ask the “why-why analysis” of inventory movements (Fullen, 2005). All the store outlets will liaise with the sales officer in charge of the product to assess the progress of the product within the market. It will be the duty of the sales officer to communicate on the progress of the new product. Just in case the product is embraced fully in the market, it implies improvement in sales. This will be responded with production of a guarded quantity of Danish.
It is also true what the firm will do in case the product receives a highly negative perception. The short-term and medium term result must indicate whether the firm may continue with this new product line or not. Conclusion The success of Pizza Delicacy Solomon’s Cafe in introducing successfully the Danish product depends on a number of factors. First, the management must assess the optimal second product line, the best production process and market positioning program. All the available substitutes of the planned new product are necessary in developing a strategy to introduce a new product line. The benefits of introducing a new product is that introducing new line of breakfast products will have two fold benefits for the firm. First the firm will give the customers an assortment to choose from in satisfying their needs. The other benefit is that the restaurant will be in a position to serve potential customers who do not like sandwiches but can go for anything else. Finally, the results of other procedures and processes like supply chain, inventory management, marketing of the product, logistics and the sourcing strategies greatly influence new product line introduction in the food industry.