Are you Hungry

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Are you Hungry?
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What Restaurant defines Green St.?
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Zas Italian Café Exceeding Expectations
Presented By Chris Pilat Lawrence Ho James
Deddens Valerie James David Chen
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Zas Overview

• Located on Wright and Green Street
• Serves Pizzas, Pastas, Salads, Desserts, and
  Coffee
• Quick and Quality Service

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Founder Bruce Hink

• University of Illinois Accountancy Grad
• Operated Garcias pizza for over 9 years and
  opened more then 15 new stores across the nation
• He currently owns Delights (union), Zas at ME
  Lab, Zas on Springfield (licenses agreement),
  opening new restaurant at U. Michigan

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Zas Tasty Objective

• Exceed Expectations
• From suppliers, employees, customers, technology
  and competition

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Zas Success Story

• Three Processes Contribute to Success Production
  processes, Inventory process, Labor process.
• Within processes, Zas
• partitions decision rights appropriately
• maintains efficient process controls
• continues to monitor, learn and adapt to changing
  business environment.
• No problems to be fixed, only improvements to be
  made

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Production
Inventory Control
Inventory
Marketing
Human Resource
Information Management
Information System
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Exceeding Expectations with Italian Food

• The customization that Zas offers makes it
  unlike any other restaurant on campus.
• Zas offers create your own
• Pizza, Sandwich, Salad, Pasta
• Freshly roasted coffee (many variety)
• 12 different type of smoothes

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Pasta in less then 5 mins! NO WAY!!!!!
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Zas prides itself on offering customers the
fastest and freshest food possible

• Zas asks its customers to fill out order forms
  while in line so that when they arrive at the
  cashier, all that must be done is the exchange of
  the order form and money.

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Pasta for under 5 !!! Where!!
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Zas customer base is made up of college students

• Zas goes straight to the manufacturer to buy its
  goods.
• Zas only allows cash payments to avoid credit
  card company fees that would have to be passed on
  to the customers

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Location
LOCATION !!!
APARTMENTS AREAS!
ZAs Italian Cafe
THE HEART of Campus
LOCATION IS OF PRIME IMPORTANCE IN THE RESTAURANT
BUSINESS. ESPECIALLY IN THE COLLGE AREA.
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COMFORTABLE ATMOSPHERE!!
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RISK

• Operational Risk
• Competitive Risk
• Franchise Risk

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Business Process

• Production Process
• Inventory Purchasing Process
• Labor Efficiency Process

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Zas Production Process

• Objective
• To maximize efficiency while producing a high
  quality product, keeping in mind the company
  purpose to exceed expectations.

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Ordering

• 4 unique ordering forms (pizza, salad, pasta,
  sandwich)
• Location
• Left hand side when entering Zas or on exterior
  wall in case of line

• Improves Efficiency
• For customers that already know what they want
• Fill out form quicker receive food sooner

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Ordering Forms Two Sections

• Bottom Section
• Perforated stub
• Ticket collector fills out order and name.
• Separates gives top to appropriate food
  station.
• Customer presents bottom section to cashier to
  pay for order.

• Top Section
• Customer indicates what they want ( pasta, pizza
  etc)
• Customize order (ingredients and toppings)

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Exceeding Expectations

• During Busy Ordering
• Improve employee satisfaction and efficiency by

• delivering the order to the appropriate food
  station before accepting payment
• preparing their food before they pay for it.
• See Appendices

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Food Preparation

• Ticket collector delivers the customers order
  form to the head pasta, pizza, sandwich or salad
  station.
• After receiving the order stub, head of station
  helps complete order.

• Improves Efficiency
• Every employee knows how to make all types of
  food
• Can switch stations
• Flexible for fast-paced ordering and challenging
  demands

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Like an Assembly Line

• Minimal physical distance between each step
• Close proximity does not impede on efficiency

• Value added process
• Each employee adds value to the final product
• Dine-in or carry-out
• Call out order at pickup window

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Controls

• Shift Manager- monitors effectiveness
  efficiency
• Zas culture is to have fun, but must continually
  work or take initiative to improve efficiency

• Take order stubs from customers waiting in line
• Verify
• all customers satisfied
• no order stubs lost

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Process Improvements

• Champaign Location
• Narrow entrance
• Inefficient and congested line
• New customers block the line when filling out
  their order forms.

• Ann, Arbor Location
• express line and normal line.
• enable repeat customers to move through line
  quickly
• new customers use normal line.

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Process Improvements

• Ann, Arbor Location
• Create seating and bathrooms on one side of the
  cash register
• Improves flow

• Champaign Location
• Cash register close to drink machine, bathrooms
  and additional seating
• Congestion

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Exceeding Expectations within the inventory
Process

• Overview
• 25-30 percent of sales
• Just-in-time inventory method
• Partition rights for authority to purchase and
  verify order accuracy
• Establish good relations with its suppliers

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Inventory Objective

• Exceed expectations
• Purchase exceptional products
• Low prices
• Timely delivery of products

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Vendors

• Hoelting
• Privately owned and provides the best quality
  inventory
• Based locally
• Greco
• Based in Chicago

• Sams Club
• Based locally
• More expensive
• Provides items when needed immediately
• Sysco
• national vendor
• largest

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Purchasing Process

• Owner and Head Manager initiate purchases from
  four vendors
• Higher bargaining power
• Variety of quality, prices and item options
• Base purchases on sales records and trends
• Looks at supplies for shortages
• Contacts suppliers

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Just-in-time Inventory Method

• Order when inventory levels are low
• Usually receive products next day
• High quality and remain fresh
• Inventory turnover is healthy
• Inventory remains in the store for
• Avoids wastes

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Purchasing Risks Controls

• Risks
• Shipment not timely
• Run out before
• order is placed
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• Control
• Hink drives to the supplier (depending on
  distance but will go as far as Chicago)
• Deliver products himself
• Send an employee to Sams Club for items

No Food
Mad Customers
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Receiving Process

• Usually receives ordered items the next day
• Hink or Mike will verify orders to avoid billing
  discrepancies
• Authority and Completeness

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Relations with its suppliers

• Pays outstanding balances within 5 days of the
  billing date
• Suppliers accommodate Zas
• Offered Zas the lowest price
• Best quality items
• Timely

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Risks

• Prices
• Delivery (Time)
• Quality

• Relationships avoid these risks
• Example

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Strengths

• Obtain several vendors
• allows quality, low cost , different items
• Use of the just-in-time inventory method
• products are available and fresh
• Managers verify supplier invoices and orders
• it protects any over- or undercharge
• Obtains good relationships with vendors
• keep inventory fresh, cheap and on-time

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Weaknesses and Suggestions

• Weakness
• No track for wastes
• during the summer
• Employee mistakes on orders

• Suggestions
• Be proactive against wastes
• Have leads track what each of its stations have
  thrown out
• Have managers analyze the information to be sure
  that it is not out of hand

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Exceeding Expectations

• ?All of these strengths have allowed Zas to
  reach its objectives and EXCEED EXPECTATIONS

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Labor Objective

• Efficiently serve customers high quality food
• The 5 minute wait
• Partitioning of Rights Hierarchy
• Lower operating costs
• Hourly Sales Sheet
• Labor Expense to Sales Ratio

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Structural Hierarchy
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Labor Hierarchy

• Owner partitions rights to Managers to run daily
  operations to satisfy their customers
• Managers organize employees in an efficient
  manner
• Managers partition rights to Employee at Food
  Station (Head of Station)
• Head of Station is given authority in food
  station to organize employees and provide
  guidance at the station.

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Labor Efficiency

• Employee fill out a Labor expense to sales ratio
  for each shift
• Creates awareness of their level of success and
  efficiency during their shift
• Bonus incentive to employees for completion
• Zas records the sales each day on an hourly
  basis
• Managers use sales sheet to accurately assess
  demand for each hour and know how many employees
  to schedule for each shift

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Employee ABC System

• Rank employees on an A, B, C scale
• A is excellent and a C is mediocre
• More likely to rehire an A employee
• Gauging employee effectiveness
• To improve employees each year, Hink hires new
  employees with skills and attitudes similar to
  those in the A group

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Exceeding Expectations Using the TRUST System

• System creates a culture where employees and
  managers have mutual respect and trust
• Managers instill a sense of pride and enjoyment
  in each worker for their job responsibilities
• If employees enjoy their job and respect their
  managers, they will not have an incentive to
  defraud or neglect their duties
• Cheerful employees that value their job convey a
  positive image to customers

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TRUST System Results

• Reduce a principle-agent issue between employees
  and upper level management
• Lead to a Positive Source of Marketing for the
  Restaurant
• When customers have an enjoyable time at Zas,
  they will tell others about their experience
• Positive word of mouth is a valuable channel to
  market a small business

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Improvements

• Za's management should create and hand out a
  written labor policy to set guidelines and
  provide standards for employees if any
  uncertainties

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What Weve Learned

• To evaluate the business, we must understand the
  business
• Always room for improvement
• Exceeding Expectations throughout the business
  process creates success

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Everyone Agrees

• Good food, low prices, good atmosphere. What
  else can you ask for in a restaurant? (Mohammed
  Ahmed)
• Being a college student, I dont have much
  money. All I need is 4 bucks and I got a great
  pizza. (Kim Kapusnik)
• With such a convenient location, you dont have
  to go far for good food. (Sarah Pathan)

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Conclusion

• Zas on Green St. is successful
• Must apply appropriate techniques to the type and
  size of business
• There were no problems to be fixed, only
  improvements to make to accommodate future growth
  in other locations.