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BROADWAY PIZZA

TABLE OF CONTENTS

1. INTRODUCTION AND OVERVIEW ................................................................................... 2


2. OPERATIONS MANAGEMENT PROCESS ........................................................................ 3
a) Design of Goods and Services ................................................................................................ 3
b) Quality Management ............................................................................................................... 3
c) Process and Capacity Design .................................................................................................. 4
d) Location Strategy .................................................................................................................... 4
e) Layout Design and Strategy .................................................................................................... 4
f) Job Design and Human Resources .......................................................................................... 4
g) Supply Chain Management ..................................................................................................... 5
h) Inventory Management ........................................................................................................... 5
i) Scheduling ............................................................................................................................... 5
j) Maintenance ............................................................................................................................. 5
Four Vs ........................................................................................................................................ 5
7 Wastes ...................................................................................................................................... 6
3. 5 PERFORMANCE OBJECTIVES ........................................................................................ 7
a) Quality ..................................................................................................................................... 7
b) Speed ....................................................................................................................................... 8
c) Flexibility ................................................................................................................................ 8
d) Dependability .......................................................................................................................... 8
e) Cost ......................................................................................................................................... 8
4. SUPPLY CHAIN MANAGEMENT ....................................................................................... 8
5. QUALITY PROCESS ........................................................................................................... 11
REFERENCES ............................................................................................................................. 13
1. INTRODUCTION AND OVERVIEW

The company chosen for this academic report is a newly introduced pizza and burgers chain
“Broadway Pizza” in Pakistan. The report analyses the operations management system, supply
chain and quality process of Broadway Pizza. Broadway Pizza is a well known fast food chain
which provides high quality pizza and fast service experience to their customers in the food
industry (Business & Carr 2012). It is best quality food provider in the town and is famous for
delivering the food within thirty minutes. The journey of Broadway Pizza was started in 1961
when John Spallacci arrived in Minneapolis from Gorviano Valli, Italy. Broadway Pizza is
famous for its old world flavor in every pizza and flourished throughout the world (Burgoine et
al. 2014). Broadway Pizza serves pizzas as well as many other selections including burgers,
appetizers, chicken sandwiches, hoagies, pasta, salads, and desserts. The Broadway Pizza has
something for everyone from kid’s meals, happy hours, mid night deals, delivery, take-out and
buffets. Broadway Pizza is serving for more than 60 years of great dinning and fun to their
customers. Broadway Pizza is the newest edition in the Pakistan food market with the
combination of modern methods to create traditional Italian pizza. The chain has opened outlets
in major cities of Pakistan (three in Karachi and two in Lahore) and is expecting to further open
three to five outlets in the next one year’s time span.

The outlet which is selected by me for the preparation of this academic report is located on Plot #
180, Y Block, Phase 3 DHA, Street 10, Lahore, Pakistan. Broadway Pizza caters the all tastes
and is equally loved by all age groups. The outlet operates for seven days a week from 11 am to
3 am. Usually, 6 pm to 11 pm is packed with while 112:30 pm to 4 pm is full with college
students and business personal with a total capacity to accommodate 100 plus customers with on
serve 13 staff (waiters and kitchen workforce). BBQ pizza, Chicken Fajita and Hot & Spicy
pizza are the flavors most loved by the customers and remain in huge demand. The pizza
restaurant is famous for providing midnight deals, Ramadan offers and special weekend
packages to all the target segments. The outlet also provides a friendly environment for arranging
birthday’s, engagement ceremonies, business meetings (only in business lounge), and special
events with prior reservations.

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2. OPERATIONS MANAGEMENT PROCESS

Managing operations and logistics in an organization is vastly essential in order to ensure the
requirements and needs of the customers on daily basis. Operations management is used by
organizations to plan and organize the products and services production. Operations management
is also helpful in human resources, accounting, finance and marketing. An organization in order
to perform logistics operations effectively and productively required timely and proper
management along with other multiple areas such as banking, finance, strategic management,
etc. The term “operations management” refers to the management of production process and
focuses on internal activities and organizational structure that creates the organizational
performance (Jones & Robinson 2012). This also supports the processes that are useful in
managing organizations efficiently (Ashworth, Hogg & Higgs 2013). Broadway Pizza, like any
other organization, involves strategies which are vital for the company’s status to increase
towards the top position in this quick service competitive food industry. Broadway Pizza must
address the 10 strategic decision of operations management for organizational development
through the years.

Figure 1: Typical Pizza Process

a) Design of Goods and Services – Broadway Pizza entered in Pakistan food market few years
back by offering flame-grilled pizzas and burgers, thus supporting intensive growth and
differentiation generic strategy. The brand ensures that it reflects the brand image in the
consumers mind. They design their products in such a way that it looks different from their
competitors in the market.

b) Quality Management – Broadway Pizza main concern is to satisfy the target customer’s
quality expectations. They carefully outsource wheat, dough, toppings and seasonings from the

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suppliers that complies their quality standards. To address this concern, Broadway Pizza also
maintains product tests on regular basis and collects customer feedback via short surveys about
their products and experience at the outlet.

c) Process and Capacity Design – Broadway Pizza keeps an eye on the sudden demand and
sales increase at its outlets on the weekends and vocations. The objective is to implement
programs that maximize the process productivity and capacity utilization by monitoring the
flexibility to adjust personnel and products production demand. As observable in their
restaurants, the brand is efficient to provide the flawless services to their customers (Ijaz, Supply
Chain Manager, Broadway Pizza).

d) Location Strategy – Broadway Pizza is concerned for its strategic location for optimize
market reach. The restaurant has targeted upper class with focused urban and town centers (CEO,
Broadway Pizza). Broadway Pizza also provides franchise opportunity to interested clients for
whom brief SOPs are available on their website or they can fill out a form for contacting the
management (Broadwaypizza.com.pk). Restaurant location is used as a criterion for evaluating
franchise proposals.

e) Layout Design and Strategy – Broadway Pizza addresses this strategic decision through
efficient workflows and layouts. Layout is drawn to maximize workflow efficiency keeping
aesthetic look, foodie theme, friendly ambiance, comfort, space utilization and outstanding
customer experience. Broadway Pizza store layout is designed to cope with the average peak
hour movement of goods and people for at least three days. A typical layout of Broadway Pizza
restaurant includes: Reception, Office, Kitchen - Cold storage, Assembly line, and Packing area
(Ijaz, Supply Chain Manager, Broadway Pizza).

f) Job Design and Human Resources – The brand provides continuous on job standardized
training programs along with performance incentives to the best employee of the month. A
dedicated customer support center comprised of three members’ and field teams (riders) are
available to take online or telephonic orders for home delivery (Aamir, HR Manager, Broadway
Pizza).

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g) Supply Chain Management – Broadway Pizza is a global brand with its presence in Italy,
America and Pakistan. However, the brand employs ‘think globally, act locally’ strategy when it
comes to managing their supply chain. The brand is outsourcing all ingredients from locally
diversified suppliers considering ethical values, 4 V’s and waste management to ensure supply
stability at all times.

h) Inventory Management – Broadway Pizza minimizes inventory management costs and stock
outs through well automated management system to ensure regular supply of ingredients to their
restaurants. Broadway Pizza addresses this need through localized inventory practices based on
restaurant performance.

i) Scheduling – Broadway Pizza uses manual scheduling of human resources and has applied
flexible schedules for staff workforce based on industry standards. In addition, Broadway Pizza
use automated scheduling for each individual restaurant to streamlining processes, which is also
used by Dominos and Pizza Hut (Stoller & Mahan 2012).

j) Maintenance – Broadway Pizza maintains its physical assets through dedicated teams of
employees trained for maintaining facilities and equipment. The brand has also dedicated
maintenance teams for corporate operations and support centers for franchises as well as third
party service providers that offer maintenance services in various localities.

Four Vs – Like other businesses, Broadway Pizza is no different in that its operations are
strongly influenced by the four Vs. An average of over 50 pizzas is sold on daily basis across
their Lahore restaurant, with this number steadily increasing as the brand grows (Ijaz, SC
Manager). On the other hand, the brand is currently offering around 15 possible ingredient
combinations on 6 different bases pizza type, which means that variety is the most significant
influence of the 4 Vs on operations. This further enhanced through combinations of pizza meal
deal items (Tehseen, Anjum, Pasha, Khan & Saeed 2014). The customers also have the option to
select their own toppings, thus fast food firm is align themselves on basis of customer feedback
(Khan, Hussain & Yaqoob 2013). The variation in demand at Broadway Pizza is relatively
steady as typical customer order at least once in 1 month period. In addition, sales are higher

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during the winter season. This demand for pizza sales also increase on vocational periods and
special events. Typically, pizza demand between 7 pm to 11 pm and from 12 pm to 3 pm on
weekends is more comparative to other week days. Visibility aspects of pizza is categorized into
two ways; 1) The visibility is high for the in-store customers who placed order for dine-in, they
can directly interect with the staff and can able to see the baking and topping of pizza emerge
from the oven as the outlets provide transparent view of the kitchen layout, 2) The visibility is
low for the take away and home delivery orders. Similarly, high volume trained staff following
the same standard procedures in large quantities also results in continuous operations.

Figure 2: Broadway Pizza Four V’s


4 V’s Low High
Volume
Variety
Variation in Demand
Visibility

7 Wastes – The activities which do not add any value to the production and operation process of
a company is called 7 wastes (Katajajuuri et al. 2014). Seven wastes are given in the Figure 3.

Figure 3: Seven Wastes (Muda)

Source: http://blog.triaster.co.uk

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Broadway Pizza has strict operations standards and there is minimal level of significance/doubt
in delivering the defective orders to their customers, since products ingredients are supplied from
the reliable authenticate suppliers. Overproduction is not an issue for the restaurant as all
products are made to order when a customer placed an order either on call or in restaurant. For
transportation, the company has employed a distributor who is responsible to provide the
logistics support. If there is any risk of product damage, the supplier has to face the all costs
associated with it. The ingredients and wheat delivered to the designated restaurant after 1-2 days
of order placement. Broadway Pizza minimizes inventory management costs and stock outs
through well automated management system to ensure regular supply of ingredients to their
restaurants. Broadway Pizza addresses this need through localized inventory practices based on
restaurant performance.

Figure 4: Broadway Pizza Wastes (Percentage)


CardBoard 10%
Recyclable Paper Products and Packaging 9%
Recycling Bottles and Cans 4%
Waste (Food) 10%
Organics 68%

3. 5 PERFORMANCE OBJECTIVES

a) Quality – Broadway Pizza is best in providing quality food with fast delivery. Besides pizza
and burgers, they offer variety of supplementary items to the customers (Qureshi, Farooqui &
Qureshi 2016). Therefore, Broadway Pizza to conformance to customer expectations provides
error free products and services. The brand also provides tailored pizzas to their customers for
special occasions and events with additional wide range of products. For quality enhancement,
the restaurant provides in house trainings to employees for customer excellence experience by
time to time. The restaurant has also source highest quality wheat, dough and topping ingredients
from certified suppliers. The restaurant believes in Hospitality, cleanliness, speed of service and
product accuracy.

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b) Speed – Broadway Pizza holds different competition and challenges to test the operational
speed and service quality and operations, both in kitchen and in restaurants. This makes
workforce to act quicker to diverse situations. Speed affects the outlook of customers about new
products company, so it is vital to provide fast quality food to the customers to sustain in
competition. Generally, a pizza order takes up to 15 minutes for dine in, while maximum 30
minutes home delivery time.

c) Flexibility – Flexibility is a vital constituent to meet the requirements of the customers.


Broadway Pizza delivers products and services on a specified time frame. The management is
cooperative, willing to espouse new products and capable to organize events on diminutive
deadlines in lie to client requirements.

d) Dependability – Broadway Pizza considers three main aspects for designing products and
services, which are cost, convenience and dependability. The restaurant management is adaptive
to customer needs and seasonal changes. The brand provides promotional offers frequently to
attract more customers.

e) Cost – The cost of the services is economical compared to the competitors (Pizza Hut,
Dominos, Wall Street Pizza, Italian Pizza, etc) in the town with best quality. The restaurant
incurred prevention costs (resulted with reducing the potential for defective parts for training and
quality improvement program), internal costs (occur from defective parts or service before
delivery to customers) and external costs (associated with after delivery of defective
product/pizza).

4. SUPPLY CHAIN MANAGEMENT

Supply chain management refers to the streamlining of the flow of goods and services to
maximize customer value and to gain competitive advantage in the industry. It involves the
movement and storage of raw ingredients, work in process inventory and finished goods from
suppliers to manufacturers to consumers. Broadway Pizza supply chain model offers lower costs
of transportation, cheaper procurement and economies of scale. The company has employed an

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innovative supply chain process that ensures all functions with respect to payment and on time
distribution are managed centrally. The dough ingredients, beef and chicken are supplied to a
centrally distributing commissary (located in Lahore and Karachi) to the outlets in Lahore and
Karachi. The floor/wheat used for baking pizza is supplied by Sunny Mill. The imported
ingredients are mixed up with floor, and dough is left for 3 days at 0’C temperature from where
it is further supplied to the restaurant branches in each city. This provides consistent quality and
fresh products at the lower cost. Occasionally, this also results in losses if the demand for pizza
remains less comparative to forecasted demand.

Figure 5: Supply Chain Management of Broadway Pizza

As shown in the Figure 5, the operational flow of Broadway Pizza starts from placement of order
for dine-in, take away or home delivery by the customer/client for pizza to the delivery of the
order. The Broadway’s pizza dough is processed from the wheat through their supplier dough
production plants, and then sent to the retail outlets again in refrigerated trucks. Once the raw
materials reach the store, product assembly takes place on a made to order basis. Through the in-store assembly
line, toppings are added to the assembled pizza base; it is cooked, and finally served to customers. Methods of
distribution to consumers (pizza) vary from in-store collection to delivery via courier. Once the
customer goes to the restaurant and places an order or customer place an order via phone call. If

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the order is placed for dine in or take away by the customer, the request is forward to the kitchen
in charge from the support team for making the pizza. The order number is issued to the
customer and order number is shown on make table screen. Afterwards, it takes up to 12-15
minutes for oven baking, cutting and delivering the pizza to the customer table. However, in case
of home delivery, it takes up to 15 minutes more for customer to receive the required delivery.

Figure 6: Supply Chain Management of Broadway Pizza (Stepwise)

Figure 7: Value Chain Analysis of Broadway Pizza

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5. QUALITY PROCESS

Broadway Pizza is determined to comprehend larger profits by offering quality services with
respect to customer’s requirement. For them, customer relationship is key driver to make their
current buyers or customers into loyal customers as with the passage of time and developments
customers are becoming more concern and conscious make organizations more focused on
providing best quality products and customer services. Quality has strong effect on the
satisfaction and loyalty of consumer (Oliver 2014). In absence of proper information and detailed
checking service quality, Price is considered as a parameter of quality (Smith 1995). The
consequence of this comparison is that buyers need to produce the objectives with regards to
support quality, price and service efficiency (Tan, Oriade & Fallon 2014). Da Fonseca et al.
(2009) argue that there are three factors that may influence customer perception of quality during
a service delivery include technical quality, functional quality and image. The perceptions of
customers service quality also dependent on satisfaction of two sets of service quality. In
addition to the final customer, the midway customer- the contact person who depends upon
ancillary services provided elsewhere in the organization should also be served (Parasuraman et
al. 1985). Service means a set of benefits delivered from the service provider to the service
receiver and quality is observed as a major factor in reference to customer acquisition and
retention (Galloway and Ho 1996).

Focus on the customer – Broadway Pizza priority is to greet customers. Zeithaml and Bitner
(1996) suggest top service quality involves dimensions that can be tangibles, dependability,
responsiveness, guarantee along with sympathy. The restaurant products quality is determined by
the end customers, so their main aim is to understand what a customer desires from them.
Broadway Pizza products are reviewed by a Food Technologist to ensure that the product is safe,
legal and consistently of high quality. Broadway Pizza focuses on the provision of fast and
efficient services, the speed of transaction, and the reputation and image of the brand. They have
to always be in touch with their customer about their taste by getting feedback. The brand tires
not only to make improvements in the recipe but also in the operational efficiency so they can
serve more customers by following ACDP plan, that is Act to implement, Check for regular
feedback, Do early restocking of ingredients and Plan well to late restock.

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Employee involvement – Spinelli and Canavos (2000) argued that employees are likely to play
a significant role on customer satisfaction. Since company’s intangible assets reside in
employees’ know-how and skills, and the company’s future depends heavily on employees and
the perceived quality of interactions, employee satisfaction has become one of the most critical
issues facing the food industry (Matzler and Renzl 2007). Broadway Pizza employees involve
and interact with customers, therefore, tend to play a significant role in quality perceptions and
customer satisfaction (Bitner 1990). The higher management has created an environment to
make contribution by the employees for continuous improvements. The brand provides flexible
working conditions to their staff which ultimately contribute positively in the organization
success. They believe that quality management can be achieved by staff proper dressing, on time
delivery of food, adopting hygienic measures and following SOPs. Broadway Pizza employees
have direct contact with customers that are why the company gave employees an empowerment
so that they can work on more stations, such as a cashier and waitress. In the process of training,
employees are not only thinking in one specialization but also all other specialties.

Benchmarking – Benchmarking is used as a tool to measure an organization products, policies,


strategies and processes to the industry’s standard measurements. Benchmarking evaluates the
organizations practices; identify gaps and improvements to enhance value (Duman et al. 2017).
Being new in the industry, Broadway Pizza has a long way to learn from the industry leaders.
The brand needs to make their presence on social media in this social inbound marketing era
which will be helpful to generate leads in to potential customers. For example, Broadway Pizza
holds benchmark for standardization flavor for each pizza recipe in the menu for all restaurants.
Furthermore, being a small venture, the brand also offering franchise facilities to tenacity the
issue of dine-in areas, where their competitors have competitive advantage. Also, they are in
need to improve their online order placement mechanism by comparing and benchmarking to the
other rivals showing order placement information from food preparation to baking to boxing and
packaging to delivery en route.

Continuous improvement – Broadway Pizza constantly improve the production process,


products, customer service experience and ambitious environment culture to achieve
improvement in an organization. The brand has implemented new software which has

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advantages of safety of food, improvements in yield, lesser wastes and high quality in terms of
food and sustainability. The brand is following lean manufacturing which not only offer lower
costs but also maximizes the high amount if values with high scale (Dudbridge 2012). Broadway
Pizza should maintain a focused menu that is designed to present an attractive quality offering to
customers while minimizing order errors. Additionally, a comprehensive store operations
evaluation program should be utilized to ensure that restaurants are meeting both as the
expectations of the customers.

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Interview:
Mr. Farrukh Ijaz (Supply Chain Manager, Broadway Pizza)
Mr. Aamir Islam (HR Manager, Broadway Pizza)

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