Category Spend Strategy Report
Category Spend Report
Bei Sushi Restaurant
Prepared by:
Team X
25 October 2013
Contents
Executive Summary
Bei Restaurant is an upper scale sushi house located in Scottsdale, Arizona. As it caters to the upper middle class, Bei is striving to provide a customer centric fine dining experience by offering excellent service and fresh, high quality food. Although Bei Restaurant is a new venture, its owner and operator has years of experience in the industry, and has a wealth of knowledge of most areas of sushi business operation. Furthermore, financial data was made available by a local restaurant "XYZ Sushi". Because Bei is trying the closely model the operations of XYZ Sushi, which is operating in the same region, the financial figures can be used as a valid baseline for Bei Restaurant. (To conceal proprietary information, business name and financial data was altered in this report. All of the ratios as they relate to operating margins have been kept the same). Currently, Bei Restaurant is facing challenges in the inventory management area of operation. Fish is often going to waste because of the short shelf life, while the volatile prices allow for little certainty of future operational margins. In this report we outlined the spend analysis used to identify greatest areas of opportunity (Tuna, Salmon and Yellowtail). And use several tools to outline a low cost strategy to ensure stability, reduction of waste, and decreased pricing in the long term.
Introduction
When exploring options for this project, we wanted to choose a business that we can make a distinct impact on. We thought it was very important for this project to be mutually beneficial for both us, and the business. As we explored the options, a member of our team, Ji, approached us about his brand new Sushi restaurant, Bei. This seemed like a great opportunity to help with a start up, and better yet, the owner is in our group. Ji has
Bei Sushi Restaurant
Prepared by:
Team X
25 October 2013
Contents
Executive Summary
Bei Restaurant is an upper scale sushi house located in Scottsdale, Arizona. As it caters to the upper middle class, Bei is striving to provide a customer centric fine dining experience by offering excellent service and fresh, high quality food. Although Bei Restaurant is a new venture, its owner and operator has years of experience in the industry, and has a wealth of knowledge of most areas of sushi business operation. Furthermore, financial data was made available by a local restaurant "XYZ Sushi". Because Bei is trying the closely model the operations of XYZ Sushi, which is operating in the same region, the financial figures can be used as a valid baseline for Bei Restaurant. (To conceal proprietary information, business name and financial data was altered in this report. All of the ratios as they relate to operating margins have been kept the same). Currently, Bei Restaurant is facing challenges in the inventory management area of operation. Fish is often going to waste because of the short shelf life, while the volatile prices allow for little certainty of future operational margins. In this report we outlined the spend analysis used to identify greatest areas of opportunity (Tuna, Salmon and Yellowtail). And use several tools to outline a low cost strategy to ensure stability, reduction of waste, and decreased pricing in the long term.
Introduction
When exploring options for this project, we wanted to choose a business that we can make a distinct impact on. We thought it was very important for this project to be mutually beneficial for both us, and the business. As we explored the options, a member of our team, Ji, approached us about his brand new Sushi restaurant, Bei. This seemed like a great opportunity to help with a start up, and better yet, the owner is in our group. Ji has
Cited: Kull, Thomas. "Supply Market and Price Analysis." Arizona State University. Tempe, Arizona. 2013. Lecture. Kull, Thomas. “Spend/ Demand Analysis.” Arizona State University. Tempe, Arizona. 2013. Lecture. Kull, Thomas. “Category ResearchStrategy Review.” Arizona State University. Tempe, Arizona. 2013. Lecture. SushiLinks. "Nuclear Radiation Fallout In Food From Japan And Sushi Fish From Japan."Nuclear Radiation Fallout In Food From Japan And Sushi Fish From Japan. N.p., n.d. Web. 26 Oct. 2013 “The Ocean.” National Geographic. N.p., 10 July 2013. Web. 01 Oct 2013. Woong, Ji. Personal Interview. 15 Sep 2013.