Cost determines the amount of resources needed to produce the products necessary to fill Subway’s inventory (Schroeder, 2011). In order for the Subway chain to preserve low costs, it is necessary to continue concentrating on the quality ingredients and the healthier alternatives that draw consumers to its restaurants. All things considered, Subway has grown exceedingly aware of what its target audience craves: a healthy alternative to fast food, quality nutrition, and great value. After all, nothing exceeds the value of the “$5 Foot Long” deal, a foot-long sandwich that includes a choice of meat stacked on fresh baked bread, and piled with fresh vegetables. It may seem doubtful that Subway can profit off of these sandwiches, but the secret …show more content…
The objectives of operations are short term, measurable goals that drive an organization towards the success of achieving its long-term goals. These objectives include: quality, cost, flexibility, and delivery (Schroeder, 2011). In terms of these objectives, Subway seems to be high quality and moderately low cost. Subway retains low unit costs throughout the supply chain by reducing unnecessary deliveries, while minimizing packaging material and shipping material (Subway, 2015). However, inconsistent delivery may be negatively affected by placing too much emphasis on low costs. Several Subway locations continue to operate while understaffed, which means that the consumer’s sub is left waiting to move onto the next step in the assembly line. First, employees need to be cautious of a sandwich left waiting, as it will continue to lose quality the longer that it is stagnant. Second, a customer who has a short lunch break cannot be delayed by a shorthanded business. The inconsistent delivery can result in a negative experience for any potential consumer. Overall, Subway upholds an excellent business practice that remains cost efficient. Subway restaurants meet the demands of an increasingly health-conscious as it provides quality products at a lower cost. However, the quality food and low costs will not be enough to increase sales. If the Subway chain genuinely wants to measure up to the competition without having to raise its costs, it would be wise to consider the addition of drive-thru locations in order to boost
East Park Restaurant operates using a hybrid (mixture of vertical and horizontal) organizational structure where Boos reports to the company’s owners. Assistant managers and front...
The New York City Subway is one of the oldest public transit systems in the world, and Manhattan has its fair share of it, especially in the form of abandoned subway stations.Subways are great mean of transportation, with great historical and geographical value. Interborough Rapid Transit company built the first subway in 1904. The subway consisted of what is today the IRT Lexington Avenue Line south of 42nd Street, the 42nd Street Shuttle and the IRT Broadway - Seventh Avenue Line between 42nd and 145th Streets. 28th Street is a part of the first IRT line of NewYork city. It a local station on the Lexington Avenue Line of the New York City Subway, located at the intersection of Park
After a long day in school and studying, every student needs a night off to just relax and enjoy a meal at a restaurant. In this modern time, some aspects of a restaurant can be the deciding choice. Many choose their restaurant of choice based on either those they are with, their personal, cultural appetite, their routine eating habits or their mood. Some of these preferences are similar yet others are the deciding differences. Two common franchise restaurants that pose differences are Applebee’s and Olive Garden. These two restaurants present their differences in environmental and food options causing a choice between them.
Happy Hat, a U.S. national chain of frozen yogurt stores with about 500 stores in 40 states is asking for assistance with its business processes. The average number of visitors per store has held constant over the past several years, but revenues per store are down by an average of 10%, and many stores are no longer profitable. The client suspects that a large amount of inventory is being thrown away unused at the end of each day. At the same time, customer polling suggests that the yogurt flavor customers want is often not available, even when the flavor is posted on the menu. People also complain about stores being closed when they visit. Now, the chain is facing increased competition from frozen yogurt sold in 24-hour grocery stores. Happy
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
The next and most obvious task one must perform at Subway is the making of sandwiches (plus salads and wraps, but let's not get too elaborate). The first step for making
McDonald's also focuses on the perception of value within it line of products and therefore takes care to price its menu items accordingly. Different products are priced differently depending on which target audience those items appeal to most. An extensive value menu is an essential part of any fast-food menu in recent years. The prices and products within the value menu can prove to be areas that will make or break a fast-food companies' year depending on the competitions value menus.
This case study will address many issues facing Wawa in an attempt to make the store better able to meet and surpass consumer expectations. The first problem is the biggest problem that faces any retail business, shrinkage. Wawa food department receives food and then sells it. Because of universal food handling regulations as well as a commitment to consumer safety, Wawa will not sell any products that are out of code meaning past its expiration date and time. Any food that is out of code and thrown away is at a cost. Different products have vastly different profit ratios.
I recommend that we decrease the average service times for all food stations as well as reduce the minimum service time for the interactive cooking station and increase the inter-arrival time. We can implement this by offering specials a half hour to an hour before the rush period begins, have enough precooked meals available to accommodate the rush and precook the ingredients for the interactive station. We can also have the manager step in as the second cashier whenever a certain amount of time transpires. The cashier on duty can signal to the manager by hand gestures or a light when the wait time has exceeded two minutes, respectively. I also recommend that the layout of the cafeteria be changed. The new layout will give us better organization of the lines in order to decrease confusion.
One of the following is an environment analysis of “largest Pizza chains” in the US and International. In the following sections, we will assess the environment analysis on “consumer satisfaction” and its re-formulated pizza recipe. Within the re-formulating and the expansion of its menu, we will see how they have been able to recapture some of the market with existing and new customers, with customer satisfaction and excellent delivery. Domino’s Pizza, for example, they have re-formulated their ingredients and added new items to their menu, but like Pizza Hut, Papa John’s, and Little Caesar, we will discuss their strength’s and weakness to be able to survive in the Pizza Industry. Within this report, I will cover the existing/future components of the general environment such as demographics, economics, political/legal, sociocultural, technological culture, and their efforts to remain a competitor in the industry.
Cost accounting system has two types, job order costing, and process cost system. These two cost systems are very different, almost every company uses order costing or process costing. Starbucks, is a coffee shop where citizens congregate to drink there morning coffee, study, and or socialize. Starbucks is one of the oldest and largest privately held specialty coffee retailer in the United States. (Starbucks) Their passion is to discover the flavors you love and always bring it home, delivering the look, taste and aroma of the world’s best coffee and teas. Job order costing is a very easy way in order to help Starbucks managers to know how much profit their company (Starbucks) made.
As responsiveness increases, the convenience store chain is exposed to greater uncertainty. A convenience store chain can improve responsiveness to this uncertainty using one of the following strategies, especially for fresh and fast foods:
Domino’s Pizza is one of the world leaders in pizza delivery. It establishes in 1960 in the United States and operating with company-owned and franchise owned stores in International markets (Dominobiz, 2013). In this essay we will look through the operation management of Domino’s Pizza which in the core operation. Then, I will analyse the 4V model of attribute of demand for the service, the performance objective of the organisation, provide input-transformation-output diagram and supply network of the organisation. Lastly, provide improvement suggestion for Domino’s Pizza core operation.
Burger King uses a dispersed configuration for day to day operations as the majority of their restaurants are franchises with local suppliers. Yet Burger King Headquarters uses a concentrated configuration for marketing and development of products, as well as pricing. This centralization of marketing assists all franchises worldwide and provides the greatest value for the company, but the direction of available products and pricing has proven detrimental to the overall success of the firm. An article on CNNMoney.com describes the failure of the $1 double cheese burger to stimulate sales and how a number of franchisees filed lawsuits against the headquarters due to being forced to sell the double cheese burger at less than cost in order to boost revenues for the headquarters and shareholders and not the franchisees.
The restaurant industry has become quite competitive in recent times. In an effort to cut costs restaurants are taking serious measures to improve their performance in relation to their competitors. Two of the most important steps that restaurants have undertaken in recent years are: