Food4U, Inc: The Pizza competition
Renee Kershaw, manager of food services at a medium-sized private university in the Southeast, just had the wind taken out of her sails. She had decided that, owing to the success of her year-old pizza service, the time was right to expand pizza-making operations on campus. However, yesterday the university president announced plans to begin construction of a student center on campus that would house, among the facilities, a new food court. In the departure from past university policy, this new facility would permit and accommodate food-service operation from three private organizations: Dunkin’ Donuts, Taco Bell, and Pizza Hut. Until now, all food service ...view middle of the document...
The university also provide space, at a nominal rent, for three food service facilities. The primary facility, a large cafeteria housed on the ground floor of the maintain administration building, is located in the center of campus. This cafeteria is open for breakfast, lunch and dinner daily. A second location, called the Dogwood Room on the second floor of the administration building, serves an upscale luncheon buffets on weekdays only. The third facility, is a small grill located in the corner of a recreational building near the dormitories. The grill is open from 11a.m to 10 p.m. daily and until midnight on Friday and Saturday nights. Kershaw is responsible for all three operations.
The Pizza Decision
Food4U, Inc., has been operating for the food services for the past 10 years – ever since the university decided that is mission and core competencies should focus on education, not on food service. Kershaw has been at this university for 18 months. Previously, she was an assistant manager of food services at a small university in the Northeast. After 3 to 4 months of getting oriented to new position, she had begun to conduct surveys to determine customers need and market trends.
An analysis of the survey data indicated that students were not as satisfied with the food being consumed by the students, broken down as follows, was not being purchasd at the PIZZA favilities:
Percent of food prepared in dorm rooms 20
Percent of food delivered from off campus 36
Percent of food consumed off campus 44
The reason most commonly given by student were (1) lack of variety in food offerings and (2) tight, erratic schedules that did not always fit with cafeteria serving hour. Three aother findings from the survey were of concern to Kershaw: (1) the large percentage of students with cars, (2) the large percentage of students with refrigerators and microwave ovens in their rooms, and (3) the nmber of times students ordered food delivered from off campus.
Percent of students with car in campus 84
Percents of students with refrigerators and microwaves in their rooms 62
Percent of food that students consume outside Food4U, Inc., facilities 43
In response to the market survey, Kershaw decided to expand the menu at the grill to include pizza. Along with expanding the menu, she also started a delivery service that covered the entire campus. Now students would have not only greater variety, but also the convenience of having food delivered quickly to their rooms. To accommodate these changes, a pizza oven was installed in the grill and space was allocated to store pizza ingredients, to make cut-and-box pizzas, and to stage premade pizzas that were ready to cook. Existing personnel were trained to make pizza, and additional personnel were hired to deliver them by bicycle. In an attempt to keep costs down and provide fast delivery, Kershaw limited the combinations...