Moe’s southwest grill final
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Operations Management Enhancement of Moe's Southwest Grill
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Moe’s southwest grill final
- 1. Moe’s Southwest Grill Company Analysis LARMS Consulting
- 2. LARMS Consulting Group Robert Schaefer – Market Analyst Laura Grigoriew – Value Chain Specialist Annmarie Collina – Value Chain Specialist Megan Falcone – Opportunity Specialist Sania Cekic – Alternative Strategy Specialist
- 3. Overview • Company Profile • Process 1 • Value Chain Support • Value Chain Primary 2 • Problems Identified • Solutions 3
- 4. Section One - Company Profile & Experience
- 5. Company Profile Made to order Southwestern cuisine Founded 2000 in Atlanta, Georgia Franchised under Focus Brands Over 550 locations across US, two international Quickly Growing “Fast Casual” segment The very first Moe’s Location
- 6. Company Profile Strong brand culture - Friendly relaxed atmosphere - “Welcome to Moe’s! ® ” Guiding Values - Act with Integrity, Add Value, Infuse Passion, Provide Leadership, Be Yourself, Give Back, Have Fun, Etc… Fun and modern environment
- 7. The Experience Consumer Savvy - Healthy - Responsible Pop Culture Menu - Wrong Doug (The Hangover) - Julia Gulia (The Wedding Singer) - Earmuffs (Oldschool) - Who is Kaiser (The Usual Suspects) Dead Rocker Décor - Pop Art of deceased musicians - Hand selected playlist paying homage Fun and modern environment
- 9. Section Two - Value Chain Analysis
- 10. Firm Infrastructure Owner (Mia) Manager (Willy) - Line Workers - Back of the House
- 11. Human Resources Compensation - Minimum Wage Training - Minimal training - “Thrown in” Hiring - Word of mouth - No recruitment efforts
- 12. Tech and Development Various tech features available to enhance efficiency and customer experience - Interactive Coke machine - iPad at checkout - Automatic change dispenser - Moe’s App
- 13. Procurement Shipments scheduled - Twice per week - Extra raw materials kept on hand
- 14. Inbound Logistics Receive shipments twice a week Do not store a lot of product Use ingredients as soon as they come in to guarantee freshness
- 15. Operations Made to order food Estimate how much is needed to avoid excess inventory Back of the house - One chef Front of the house - Line, generally 4 employees One manager on duty
- 16. Outbound Logistics Dine in, take out, delivery, and catering Provide quality food and fast services Variety of options for customers - Over 20 different fresh ingredients
- 17. Marketing and Sales Community outreach - Student discounts - Cater local school lunches In-kind contributions - On campus events Free meal after 10 meals - Kids eat free on Tuesday nights Sales - in-store purchases, catering jobs, online ordering system
- 18. Service Offer catering, delivery, and online orders Very friendly - Greet customers Address customer issues to keep them satisfied Up to date with current franchise standards - Menu changes Offer survey to get customer feedback - Incentive if you complete the survey, get free queso
- 19. Section Three - Problem Identification & Solutions
- 20. Problems Identified 1. Finding reliable employees 2. Keep items fresh 3. How to deal with franchise rules and the owner 4. Implementing technology and development
- 21. Problems Identified 1. Finding Reliable Employees • U.S. citizens • Driving • Employees coming in late • Speaking English • Quick learners
- 22. Problems Identified 2. Keep Items Fresh • Come in 7:00 a.m. open at 10:30 a.m. to prepare the food for the day • Throw away a lot of leftover food - Chips and salsa • “Hours of life” for food - Guacamole, sour cream and pico de gallo
- 23. Problems Identified 3. Management – Franchise vs. Local • Keeping everything unified • Owner relays information to manager- then to the rest of the employees • Owner becomes the “bad guy” because there is only one and he has to sometimes go against the owner • Not much room for local or individual growth considering the region
- 24. Problems Identified 4. Implementing Technology and Development • Not enough utilization of technology in customer service • More room for the usage of technology
- 25. Solutions 1. Finding Reliable Employees • “Efficiency wage” - Standardized hiring practices, in depth training, incentive through the form of efficiency wage. - They have more disposable income - Starbucks and Zappos aren’t prestigious jobs however they treat their employees well and they don’t feel as if they are working a low paying menial jobs
- 26. Solutions 2. Keep Items Fresh • More frequent deliveries and intuitive software that keeps track of inventory and forecasts required inventory - Less work for them to keep the food fresh
- 27. Solutions 3. Management – Franchise vs. Local • Balance between franchise regulations and micro cultural norms - There should be more than one manager to differentiate between the franchise and the local needs of the business - Less pressure on one manager it is distributed between the two managers - balance
- 28. Solutions 4. Implementing Technology and Development • Creating more awareness of technology - They will implement the technology and use more advertising - iPad, rewards program, catering, delivery - Easier and will attract more people towards Moe’s
- 29. Solutions Cost • POS System – One time cost of $5,500 • More frequent deliveries • $25,000 annually • Efficiency wage • $35,000 annually Total Cost of Improvement Implementation: Initial $65,500; $35,00 per year recurring
- 30. Recap • Company Profile • Process 1 • Value Chain Support • Value Chain Primary 2 • Problems Identified • Solutions 3
- 31. Questions?
Editor's Notes
- Inbound logistics is the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. Moe's receives food shipments twice a week. Since it is a food industry, they do not store a lot of product and it's important that they use their ingredients right away so they are fresh. They do throw out ingredients that have been opened and unused at the end of the night since they're no longer fresh. It's really important to them that food is ordered as needed to provide efficiency.
- Operations is the processes of transforming inputs into finished products and services. Moe's provides made to order food so each ingredient is used as needed. They try to estimate how much is needed so they don't order extra to avoid turnover. Back of the house, generally one chef who cooks the meat and preps produce for the line. Then the front of the house is a line with generally four employees and when a customer orders food, each employee has a specific task. employee 1: order tacos, bowl, burrito, or quesadilla employee 2: asks type of meat and toppings employee 3: wraps the product or cooks it, then adds chips and bags employee 4: the cashier who asks if you'd like a drink and rings up your order Also, any employee that is free cleans the seating area and restocks self serve (salsa, drinks, utensils). Usually one manager on duty to help and deal with any customer problems.
- Next we have outbound logistics which is the warehousing and distribution of finished goods. Moe's offers dine in, take out, delivery, and catering. Their job is to provide quality food and fast services to keep customers satisfied. They succeed in this by having a variety of options including over 20 different fresh ingredients, as well as providing customer service.
- Marketing and sales is primarily corporate controlled but these are some things that the Moe's in Mahwah offers. For marketing, Moe's does not do a lot of advertisement and relies heavily on word of mouth/public view. They do a lot of community outreach. Moe's in Mahwah has student discount for Ramapo students as well as other nearby high schools. They also cater local school lunches at a nearby Middle School. Donate a lot of food otherwise known as in-kind contributions. Many events on campus are catered by Moe's, they donate to our Relay for Life every year amongst other things. Offer membership card that give customers one free meal after purchasing 10 meals. Also, kids eat free on Tuesday nights from 5-9 pm with the purchase of an adult meal. Sales are made up of in-store purchases, catering, and from their online ordering system.
- The last segment of the primary section of the value chain is service. As mentioned, Moe's offers catering, delivery, and online orders. They offer very friendly service and always greet customers when they walk in. They're also up to date with current franchise standards and any menu changes. To receive customer feedback and make positive changes, they offer a survey on every receipt and as an incentive if it is completed, you can receive free queso on your next visit.
- Communiate that it’s a matter of balance not just having an enforcer or scape goat. Its all about “efficient communication”