Pizza Franchise - Term Paper Example

Introduction to Organization and Project Mission: The mission of Pizza Veloce is to deliver high quality pizzas while offering faster delivery timesfor the foods through the use of technology. Vision: To offer the fastest turn – around time for pizzas, both within a restaurant and through delivery. Goals and Objectives: To have high quality food products based on pizza, specific to the true, Italian taste To offer the fastest turn – around times with the use of technology to meet customer needs To provide several areas where customers can easily order the pizzas. To provide convenient solutions for ordering and getting different pizzas Products and Services: The main products that will be offered by Pizza Veloce will be the wide variety of pizzas, most which will be based on genuine, Italian recipes that have been used for several centuries. The products will also include side items and other smaller Italian dishes, as well as desserts and drinks that can be served with the foods. The services that will be available by Pizza Veloce will be inclusive of the ways in which the pizza and other food items can be delivered to the home. The first consists of services available online for easy connections and ordering. The second is based on delivery services that are available for those who don’t want to leave their home and are interested in ordering. The third will be in – house services so individuals have the option of a restaurant like atmosphere. Each of these services will be supported by technological structures for fast delivery and a structure that enhances the making of the pizzas. Organizational Structure: The first part of the structure will be based on different departments and employees that will be able to provide the pizza making services. The first will be a team of employees for making the pizzas. The second will be a team used for the deliveries. There will also be customer service representatives that will be available for the online services and others that will provide in – store services. There will be one manager that overlook all operations at all times, specifically to make sure that there are connections with all deliveries and that workers are effective with the work. The organizational structure will then move into a CEO responsible for overlooking the main components of the operations, a vice president responsible for initiating new developments and a team that overlooks the expansion of the Pizza Veloce. This will consist of an online and offline marketing manager, human resources manager, technology manager and a liaison which will work between the office team and those who are working at the pizza company. Each of the organizational structure components will also consist of supporting technology, specifically which will change the number of employees as well as the needs which are associated with the restaurant. Expected Revenue The expected revenue that comes with the pizza is based on the amount of demand which can grow from the customer expectations. On average, a small pizzeria can expect to make $10,500 to $18,500 per week, if there is continuous demand. However, there are factors to consider with the costs of the pizzeria. For example, the cost of rent is about $8,000 per month. The cost for employees is also an average of $1200 per person per month, with an expected 5 workers per week, which equals $ per month for payment. The technology used as well as the structure is also expected to cost an average of $10,000 to install and $30,000 for yearly maintenance. The profit per year will then be at an average of $180,000 with the expenses averaging $208,000. For the pizzeria to break even, there will need to be three restaurants which open initially, which will increase the profit to $540,000 while maintaining the loss at $544,000. After the second year, the revenue will begin to gain, first by $10,000 because of the installed technology and with the expected increase in profit. There will also be options to expand the chain to continue to gain the profit after the break even point from the second year (OM, 2006). Industry Position and Competitors There are three different types of pizzerias that are currently functioning. The first includes small pizzerias, usually which are inclusive of a smaller team and a focus on local competition. The second are chain pizzerias. The top chain pizzerias include Pizza Hut, Domino’s, Papa John’s, Little Caesars, Noble Roman’s, Papa Murphy’s and Godfather’s pizza. The third type are factored into the chain restaurants and include franchises that are continuing to expand outside of the main competition. It has been noted that the limit with the different pizzas is based on the location, specifically because deliveries and other factors are based on the initial purchases and delivery options. Franchises are known to take the majority of the profits with this; however, the local pizzerias that are closer to specific residential vicinities are able to carry a strong appeal because of the pricing and quality of the pizza (Franchise Direct, 2011). The competitors which Pizza Veloce will need to consider first is the franchises and the chain restaurants that are well – known among different vicinities and which are already incorporating the technology that is a part of the objectives of the new restaurant. It is important to note that online orders, coupons and delivery options are a part of this component. Drive – ups with smaller pizzerias are also becoming popular for the competition. However, these are continuing to use location as the basis, giving Pizza Veloce a competitive advantage. Saving time by using the high end technology will allow for more delivery time, which automatically increases the locality range to deliver pizzas and allows those who are working with the area to easily maneuver between several orders at the same time to save time. Competitive Strategies For Pizza Veloce to work against the larger chain restaurants there will be the need to have a strong technological component that works at a faster pace than the other pizzerias. This will need to be combined with a different quality to the pizzas. The technology will work as the supporting factor for higher quality pizzas. The use of the Internet, GPS and the other options for ordering pizzas will be used for both advertising and getting in touch with marketing and for ordering options. This works with the employees and within the organizational structure for ordering the pizzas. There will then be a focus on higher services and better quality with end products. The quality will be inclusive of the older techniques for pizzas while there will be expectations for better delivery times because of the added technology. There are several ways in which this strategy will help to out beat competitors. The first is through the quality of the services. Most that are interested in pizza want to have the fast delivery, providing stronger guarantees. However, most chain restaurants lose the quality of the pizzas when adding in the fast delivery and cooking time. The use of the technology will speed up the process of taking orders and of preparing. This will help to change the ingredients and cook options so the pizzas can cook with the older techniques and methods for a better taste while allowing the technology to save time for a faster delivery. The balance between the technology and the quality of the customer service and pizza will redefine the quality and will add into the locations that are available for delivery (Intelligent Positioning, 2011). Organization Resources The organizational resources that will be used with the building of Pizza Veloce will consist of strategies that can be used with the technology. The technology to take orders online, navigate delivery and to dictate orders are the first types of resources used. The office department will use the same technological resources, such as online advertising and other components to connect to those that are working in the pizzeria. The resources can then expand through time to be inclusive of more technology, all which can support the efforts and services that are a part of the initiatives for the pizzeria. References Franchise Direct. (2011). “Pizza Franchise Study.” Retrieved from: http://www.franchisedirect.com/foodfranchises/pizzafranchises/snapshotofthepizzafranchiseindustry2009/80/126. Intelligent Positioning. (2011). “Dominos Takes More Than a Slice of the Online Delivery Market Share.” Retrieved from: http://www.intelligentpositioning.com/blog/2010/03/dominos-takes-more-than-a-slice-of-the-online-delivery-market-share/. OM. (2006). “Small Pizzerias, Big Profits.” Retrieved from: http://www.pizzamarketplace.com/article/108391/Small-pizzerias-big-profits. Read More