14th Street Pizza Case Study

Topics: Fast food, Pizza Hut, Pizza Pages: 20 (3696 words) Published: April 17, 2015


14th Street Pizza: the next BIG thing or a sinking ship?

Introduction
While driving to his office in Khayaban-e-Nishat, Phase 6, Tanveer Yusuf was thinking about the good old days when he started 14th Street with his two best friends NaveedGodil and AmjadTumbi. Despite the amazing response that they initially got, the ship now seems to be quite in a bit of a lurch. Started by three best friends, 14th Street was supposed to be the next big thing. Being the pioneers of the 20” pizza they intended to knockout the pizza giants like Pizza Hut and Domino’s and they were successful initially. But then two of the partners, NaveedGodil and AmjadTumbi jumped ship and went to Dubai to look after their other business and became the sleeping partners at 14th Street. Tanveer now looks after all the operations alone and he is smart enough to know that things are not going as smoothly as he would like them to be. He is unable to control his costs and therefore he is forced to sell his pizza at a higher price than his other counterparts but he does not have much choice. Knee deep in payables he is unable to come up with a solution as to how to reduce his cost or justify the high price. He expanded his business to other major areas of Karachi thinking that that will help him in increasing his revenues but even that didn’t work out as well as he expected due to growing number of pizza joints that offer similar product as 14th Street such as California, Broadway, and New York Pizza. The competition is really tough and the switching cost for the consumer is practically zero. So why should they buy, high priced, 14th street Pizza when they can easily go for a cheaper and similar brand? Adamant to not compromise on the quality of Pizza, Tanveer is now looking for options that he can choose from to get back on firm grounds. He has assigned this task to his 6, highly qualified and motivated employees to come up with solutions to help this sinking ship get out of the thunderstorm and back on calm seas. They will be presenting their recommendations today and he is quite hopeful that their recommendations will be worth his time.

Background
Evolving from a traditional family recipe, 14th Street Pizza Co. has come a long way. It was launched in Karachi, on 14th February 2011 by three friends Tanveer Yusuf, NaveedGodil, and AmjadTumbi as partners sharing 40%, 30%, and 30% respectively. Two years before launching 14th Street Pizza, the friends had bought a franchise of subway located at Shahbaz commercial DHA Karachi. The franchise is still up and running and has earned the reputation of the best franchise of subway all over Pakistan.14th street pizza was the first brand in Pakistan to introduce 20” inch thick pizza, which was enough to serve maximum 8 people.They were also the 1stpizza joint to introduce customization of each slice of pizza. Before the launch of 14th Street Pizza, for 20 years, people only had few other options such as Pizza Hut and Domino’s. People loved 14th Street Pizza and they got amazing response, more than they could handle. Initially 14th Street only got delivered in DHA and Clifton but after the amazing reviews and positive response they started their delivery operations in major areas of Karachi. Recently they have also started franchising. It was very hard to keep up with the thriving demand soon after its launch. That's when the real test began, but they faced the challenge with gusto and were soon back on the table with a better team and a bigger kitchen. Today, more than three years later, 14th Street Pizza still stands tall. The pioneers of the 20-inch pizza in Pakistan, 14th Street Pizza Co. has grown from being a corner pizza delivery place in Karachi to one of the most recognized pizza delivery places, operating branches at 5 prime locations of Karachi: Khayaban-e-Shahbaz, Khayaban-e-Nishat, KDA, SMR, North Nazimabad. 14th Street Pizza also operates in the Blue Area of Islamabad and also recently...
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