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12.25 Justification/Recommendation Report: Speedier Service at Stellato Family Pizza* (Obj. 5)

You work for Carmine Stellato, the owner of Stellato Family Pizza, a small, casual pizza shop he founded 33 years ago. Its signature items are eight-inch-diameter individual pizzas. The pizza shop also serves mozzarella sticks, wings, and assorted beverages.

The pizza shop is located in the warehouse district of Indianapolis, where it originally served truckers who delivered their meat, fruits, and vegetables in the middle of the night and then whisked off to the next city. Truckers loved the satisfying and filling pizza because it provided them with lots of energy on those tedious late-night runs. Later the pizza shop caught on with the nightclub crowd and with students who studied late. The shop opens at 10 p.m. and closes at 6 a.m.

The concept was a resounding success. However, success brings competition. Three imitators opened their pizza shops within a five-mile radius of Stellato Family Pizza. You know that the family has been using the same delivery system for years, and you know service could be faster. You also notice that new pizza shops are receiving orders via smart phones.

The current system at Stellato’s begins with a counter clerk recording the customer’s order and table number on a ticket. The customer pays, and the counter person gives the order to the pizza makers. The pizza makers remove the dough from the refrigerator, shape it, add the sauce and other ingredients, put the pie in the oven, and remove it from the oven when baked. The counter clerk then takes the order to the customer’s table. Stellato Family Pizza has three counter clerks, two pizza makers, and one cash register that the counter clerks share. It takes two minutes to prep a pizza before it can go in the oven. The pizza shop uses an outdated Rankin Model D85 pizza deck oven, which cooks a pizza in seven minutes.

You think the entire system is inefficient, and when you discuss the problem with Mr. Stellato, he says, “Although the original ways are familiar to me, I see that the time for improvement has come.”

You suggest observing the three competitors’ systems of serving customers to understand why their service is faster. Currently, the average time it takes a customer to receive an order at Stellato Family Pizza is 16 minutes. The following are notes from your observations of the competitors.

 

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