4. Proposal Focus Areas
Direct to
Customer
Employees
Process &
Equipment
Primary Goal: Reduce Customer Delivery Time
Orientation: Customer, Employee, Process/Equipment
5. Direct to Customer
Optimize the seating: Bag hooks
• Customer’s bags blocking open
seats
• Foregone sales
• Clutter near register
7. 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)
8. 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
9. 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
10. Direct to Customer
Replace the Menu
1. Eliminate the current menu on the shelf (circled in red below). Put
tea caddies on the shelf.
11. 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 $50
Only 1-2 new chalkboards are
needed.
12. Direct to Customer
Market more to Students
• Sample products outside Student Center.
• Time frame to results: 1-2 months
14. Employee Sales Contest
Problem: Employee Retention
We observed that the staff has potential to achieve more.
Solution: Employee Sales Contest
This solution will fix this problem along with increasing sales, efficiency, and staff
camaraderie
Employees
15. 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
16. 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
17. Cleaning Cloth
Problem: Non value add/ Waste of Motion
Solution: Require baristas to carry a bar towel
Employees
19. 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)
20. 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
21. 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
22. 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.
23. 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.
24. 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
25. 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
26. 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.
27.
28. 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.
