BRIEF ABOUT THE CASE
Bruegger`s Bagel Bakery makes and sells a variety of bagels, including
plain, onion, poppy seed, and cinnamon raisin, as well ass assorted flavours
of cream, cheese.
Over 450 shops sells bagels, coffee and bagel sandwiches
Bruegger`s chain generates an average of Rs. 800,000 in sales annually.
Major source of revenue for the company.
The bagel business is a Rs.3 billion industry.
Good reputation among their consumers.
Not only it taste good, but are relatively low in fat and filling too.
Liked by investors too as it can be highly profitable.
About Bruegger`s business :
Cost of production per unit of bagel = Rs. 10
Selling price per unit of bagel = Rs. 50+
Follows batch production, each flavour is produced on a daily basis.
Eg., Manufacturing of sport shoes, pharmaceutical ingredients,
purifying water, etc.
Bruegger`s devotes careful attention to quality at every stage of operation.
Employees are instructed to watch for deformed bagels and remove when
Employees are carefully chosen and trained.
Company operates with minimal inventories.
High degree of freshness in the final product.
TOOLS & TECHNIQUES
Inventory management, leading to cost cutting & consumption of lesser
Just in time : Continually supplying fresh product to the stores as and when
Quality Function Deployment (QFD)
Elimination of 7 MUDA`s :
Quick responses to the changing needs of the consumer.
Best quality at optimum cost
Customer Satisfaction = Voice of customer + QFD
Deformed bagels are returned to the main plant where they are sliced into
chips, reducing scrap rate.
Poor management in other bagel companies.
Invest in R & D
Refrigeration failure can lead to heavy loss.
Anticipate demand for other flavours as well.