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From operations to impressions : proposed strategies for Gallery 2.0 Ho, Andrea; Evin, Ryan; Sihota, Russnoor; Li, Sherry; Ching, Francis 2017-08-11

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 UBC Social Ecological Economic Development Studies (SEEDS) Student ReportAndrea Ho, Francis Ching, Russnoor Sihota, Ryan Evin, Sherry LiFROM OPERATIONS TO IMPRESSIONSPROPOSED STRATEGIES FOR GALLERY 2.0COMM 486MAugust 11, 201716272435University of British Columbia Disclaimer: “UBC SEEDS Program provides students with the opportunity to share the findings of their studies, as well as their opinions, conclusions and recommendations with the UBC community. The reader should bear in mind that this is a student project/report and is not an official document of UBC. Furthermore readers should bear in mind that these reports may not reflect the current status of activities at UBC. We urge you to contact the research persons mentioned in a report or a SEEDS team representative about the current status of the subject matter of a project/report”.	1        TEAM 2 ANDREA HO RYAN EVIN RUSSNOOR SIHOTA SHERRY LI FRANCIS CHING   AMS GALLERY 2.0 CONSULTING PROPOSAL  FROM OPERATIONS TO IMPRESSIONSPROPOSED STRATEGIES FOR GALLERY 2.0ANDREA HORYAN EVINRUSSNOOR SIHOTASHERRY LI FRANCIS CHING	2 EXECUTIVE SUMMARY  GALLERY 2.0 AT A GLANCE The AMS at UBC operates in a unique position, providing services and value to students in ways that are meant to connect the greater community together.  The opening of The Nest has fueled this greater mission by providing a wide range of restaurants and services to students, including Gallery 2.0.   Our strategy is to capitalize on this opportunity that Gallery 2.0 offers students in such a way as to provide increased value through a number of initiatives that can work to optimize the restaurant.  Essentially, we want to take Gallery 2.0 to a place where it’s potential can fully be realized, and the greater UBC community can continue to enjoy its one-of-a-kind atmosphere.  BARRIERS TO GROWTH In order to understand Gallery 2.0’s positioning, we employed a SWOT analysis to gain insight into the opportunities that are available.  We also drafted a business model canvas to fully understand the operations of Gallery 2.0 and the main value proposition.  Through our situational analysis we identified three core issues that our strategy will address in order to maximize the benefit of Gallery 2.0 for the entire community.  These issues include operational issues surrounding bottlenecks in the kitchen and wait-times, under-utilized space with a large balcony that is empty for much of the year, and lack of effective brand communication.  Our proposed strategy will seek to address these barriers and amend them in such a way as to position Gallery 2.0 as the top restaurant on the top of the Nest.  INITIATE: Operations and Leadership Our group recommended changes starting from the restaurant style, switching from a fast food serving model to a traditional setting will extend the average sitting time of each customer, and increase their average dollar spent through upselling. In terms of the fryer bottleneck, we tackle the problem through menu alterations. By offering food alternatives, we aim to mitigate the burden of the frying equipment. Finally, adding leadership element through a sous chef will deliver clear steering direction of Gallery 2.0. IMPROVE: Optimize Balcony Space To fully utilized the outdoor area, we need to first improve the infrastructure of the balcony to make the space usable. We recommend adding electric heaters and rain covers to make the balcony area available in any weather. Customers will then have the option to enjoy their meals both indoor and outdoor. This measure aims to maximize any uncaptured revenue through expanding the business area to hold more capacity. IMPRESS: Effective and Clear Brand Communication According to observation, many students were unaware of the location or products provided by the Gallery. We propose improving the existing banners and transform them into visually attractive posters and obvious signage within the nest, establishing a stronger presence within the student community. These marketing materials will focus on showing the newest items or discounts to communicate the value to consumers. Complimenting our marketing strategy, we will also push forward a new loyalty program to retain customers through long term discounts.   POTENTIAL RISKS We understand the potential risks that may arise through our strategy.  Increased reliability on employees and a lack of receptiveness from customers are the main concerns that may emerge.  However, we believe we can mitigate these risks through innovative strategies that will enable us to address these risks and capture the full benefit of the proposed changes.        	3 MEASUREMENTS OF SUCCESS Majority of our measurements will focus on the bottom line. The expected outcome of the strategy will be based on revenue growth, transaction growth, average spending, averaging sitting time, number of employees and amount of budget used. The projected results are as follows:  Metric Projection Revenue Growth 12% Transaction Growth 21% Increase in Average Spending 10% Increase in Average Sitting Time 25%  On the qualitative side, an increase social media endorsements and comments would be seen as a positive boost for Gallery 2.0. As for the restaurant positioning itself as a leader in sustainable practices, this allows the restaurant to adhere to greater values of the community and its own operations as providing optimal value in a way that is beneficial to the entire community through social sustainability initiatives.  This works twofold to bring in customers who value this integrity, while also allowing Gallery 2.0 to fulfill its responsibilities to the UBC community.  CONCLUSION From operational bottlenecks to leadership, non-optimized space to low brand awareness, we hope to capitalize the opportunities through a 3-step process: Initiate changes in operation bottlenecks and leadership, improve restaurant infrastructures and build an impressive brand to establish a better customer experience, and achieve sustainable revenue growth for Gallery 2.0.  Through our proposed strategies we want to assist the AMS in propelling the Gallery 2.0 brand into something that is entirely unique for UBC students and the community.  We believe these tactics will address the current situational opportunities in innovative ways.     	4   TABLE OF CONTENTS  1  COVER PAGE 2  EXECUTIVE SUMMARY 5  TEAM INTRODUCTION 6  SITUATIONAL ANALYSIS 7  STRATEGY OVERVIEW 8  RECOMMENDATION I 9  RECOMMENDATION II 10  RECOMMENDATION III 11  RECOMMENDATION IV 12  RISKS AND MITIGATIONS 13  MEASUREMENTS OF SUCCESS 14  CONCLUSION 15  APPENDIX I: SWOT ANALYSIS 16  APPENDIX II: BUSINESS MODEL CANVAS: GALLERY 2.0 17  APPENDIX III: ALTERNATIVE TACTICS 18  APPENDIX IV: PARTNERSHIP LANDSCAPE 19  APPENDIX V: ADDITIONAL HEATER INFORMATION 20  APPENDIX VI: SAMPLE POSTER 21  APPENDIX VII: FINANCIAL PROJECTIONS 22  APPENDIX VIII: FINANCIAL PROJECTIONS PT.II 23  APPENDIX IX: PROPOSED TIMELINE   	5         FROM OPERATIONS TO IMPRESSIONSPROPOSED STRATEGIES FOR GALLERY 2.0ANDREA HORYAN EVINRUSSNOOR SIHOTASHERRY LI FRANCIS CHING	6    SITUATIONAL ANALYSIS  Bottlenecks and Lack of Leadership Unlike traditional restaurants, Gallery 2.0 has a fast-food serving style. Currently, customers would line up, order and pay at the cashier. From observation and interviews, the waiting line could go up to 25 minutes. The long waiting line to place an order may dissuade people from entering the restaurant and instead pursue other alternatives.   Several menu items required preparation with a deep fryer. After several consultations with Daniel (the Food Service Manager), we concluded that the fryer is a significant bottleneck, as the kitchen wasn’t designed for Gallery 2.0 menu items and rather Perch menu items.     During our conversation with Daniel, we realized there is no Sous Chef in the Gallery 2.0. Each employee has equal position with similar salary, hence there is no leadership among staff in the kitchen. Lack of leadership is one of the main reasons why Gallery 2.0 has no clear guiding direction.  Unused Space  Based off our observation, we noticed the balcony is not fully utilized. Without the utilization of the fairly large space (1,282 square feet), the restaurant is not maximizing its profits. Daniel acknowledged the balcony problem, and suggested us to focus on optimizing the space.  Lack Branding and Awareness Through survey responses and interviews, we’ve noticed 67% of the students’ responses indicate that they don’t know what Gallery 2.0 is. They recognize that there is a restaurant on the top floor of the Nest, but they don’t know the name of it. Currently, there is a poster located at the bottom of the stairs, but it does not symbolize what the restaurant delivers.    OUR CURRENT SITUATIONOperation Bottlenecks➔ Long waiting lines➔ Kitchen not designed for the menu (ex: Fryer)FUTURE OPPORTUNITIES➔ Strong leadership within the kitchen ➔ Maximized revenue utilising unique balcony space ➔ Strong brand, landmark at the NestTHE FUTUREUnused Balcony➔ 1,282 sq feet not utilized➔ Not maximizing profits Lack of Leadership➔ No Sous Chef in the kitchen➔ No clear guiding directionLack Awareness & Branding➔ 67% of students don’t know what Gallery 2.0 is and what it offers ➔ Poster on ground level does not convey a clear messageSituation       Strategy       Recommendations       Risk       Metrics	7    STRATEGY OVERVIEW  An overview of our strategy designates three main actions that we want to focus on.  The first is to initiate programs and operational changes to address the issues surrounding bottlenecks in the restaurant.  The second is to improve upon existing infrastructure in order to improve the experience of customer value.  Finally, to enhance the experience of customers we want to impress through upgraded marketing strategies and alternative programs for our customers.    The overall strategy statement is as follows: To mitigate bottlenecks and improve customer experience by initiating changes in operations, improving infrastructure and impressing customers with stronger branding, resulting in an estimated 12.6% in revenue growth.   PROPOSED STRATEGYINITIATE IMPROVEIMPROVING EXISTING INFRASTRUCTUREMAXIMIZE BALCONY POTENTIALIMPRESSLOYALTY PROGRAMS FOR CUSTOMERSUPGRADE SIGNAGE AND MARKETING STRATEGIESTRANSITION TO   RESTAURANT STYLEINITIATING INNOVATIVE PARTNERSHIPS WITH CHEFSOPERATIONAL ISSUES SPACE UTILIZATION BRAND COMMUNICATIONSituation       Strategy       Recommendations       Risk       Metrics	8    INITIATE: TRANSITION TO RESTAURANT STYLE  The current setting of Gallery 2.0 is a fast food serving style. To solve operational bottlenecks and grow sales, we recommend changing the restaurant style from a fast food model to a more traditional setting. Here we focus on waiters and menu items to extend the customer sitting time, and reduce the usage of the single fryer in the kitchen.  Tactic A: Waiters for  Reception and Upselling Currently, prospective customers wait in line to place an order with a cashier, after which they take a number, sit wherever they'd like and wait for their food to come. By replacing this process with a more traditional sit-down restaurant style approach, we can eliminate the need for prospective customers to wait in line. Furthermore, this poses a tremendous opportunity to upsell each customer. Customers will be   more likely to order an additional drink or appetizer if a waiter comes to their table, rather than having to go and wait in line to place an order with the cashier.   Tactic B: Menu Alterations After a short discussion with Daniel, complementing our own observation at the Gallery, we discovered that the fryer in the kitchen is one of the bottlenecks. Initially used for producing mainly bar food items (such as fries, nachos and fried chicken etc.), the fryer occasionally experiences overloading when the restaurant reaches capacity during peak hours, resulting a longer wait time for customers.   Since it is not possible to add additional fryers due to cost and setup constraints, our group  suggests altering menu items to reduce the burden of the fryer. Our method is to provide customers with more alternatives for certain fried products, such as offering grilled chicken instead of fried chicken in the mains, or offering a new option like baked potato alongside fries. These alterations will help to mitigate the fryer bottleneck and speed up the food preparation time. In the long run, there is also a possibility to offer healthier options, such as items with less oil or steamed. With less frying options, the kitchen can again reduce the burden of the fryer.   WAITERSMoving towards a conventional restaurant style● Welcome and seat customers● Check-in & UpsellChanging menu options to reduce fryer workload● Offering Alternatives ie. Grilled Chicken vs Fried Chicken ● Healthier Options ie. Steamed vs FriedMENURecommendation 1:TRANSITION TO RESTAURANT STYLESituation       Strategy       Recommendations       Risk       MetricsINITIATE	9    INITIATE: CHEF AND KITCHEN GUIDANCE  Tactic: Restaurant Partnership To help with the bottleneck issue in the kitchen, procuring a sous chef to oversee and guide operations will be essential. Gallery 2.0 is unable to hire a sous chef since they are unable to offer a competitive salary. As a result, we propose that Gallery 2.0 seek a partnership with a restaurant that is in close proximity to UBC, like Earl’s. The partnership will be established for the purpose of having access to the restaurant’s chefs, who can provide guidance and instruction in the kitchen. Gallery 2.0 offers the respective restaurant an opportunity to advertise their brand in Gallery 2.0, as well as offer exclusive items on the menu that draw from the chef’s respective restaurant.       Tactic: UBC Home Economics Partnership To provide incentives for the partner restaurant, we will add another stakeholder - UBC Home Economics Department. According to Dr. Kerry Renwick, UBC’s Bachelor of Education faculty has a group of Red Seal chefs that would potentially be interested in working at Gallery 2.0. Such roles could be used to satisfy their community field experience requirement for their program. Tapping into this pool of students would satisfy the AMS’ preference of hiring students, as well as alleviate shortages in experienced workers, particularly in the kitchen. Part of the reason why the students would be interested in Gallery 2.0 would be because they     would be working under a sous chef from a well-established restaurant. In the end, these Red Seal chefs may see an opportunity to transition to working at the sous chef’s respective restaurant, thereby benefiting the partner restaurant.    Establish partnership with compatible restaurants.● Access to experienced sous chefs without paying full salary.RESTAURANT PARTNERSHIPRecommendation 2:CHEF / KITCHEN GUIDANCESituation       Strategy       Recommendations       Risk       MetricsINITIATEUBC HOME ECONOMICS  PARTNERSHIPEstablish partnership with UBC Home Economics Department.● Access to trainee Red Seal chefs.● Satisfy preference to hire students.	10    IMPROVE: OPTIMIZE BALCONY SPACE  Our third recommendation is to tackle the core issue of inefficient use of the restaurant space.  The main focus of this recommendation is the balcony space, which, due to external factors such as weather conditions, was not being used.  Through our observational research, we found that one of the main differentiations of Gallery 2.0 is its unique position on the rooftop of the Nest.  The patio is an incredible asset that is not being fully realized.  Two approaches to improving operations for the patio are implementing sustainable alternatives to conventional patio heaters, and installing retractable rain covers.  Tactic: Patio Heaters When considering implanting a heating source for the winter months, we must acknowledge  the AMS’ greater goal of adhering to values of sustainability.  Therefore we opt for an electric patio heater rather than a conventional heater that would use fossil fuels.  Through understanding prior SEEDS reports on environmental impacts, the zero emission electric heaters provides a sustainable alternative that can heat similarly.  This would begin as a pilot program wherein we can install heat to some of the patio in order to understand how it is used.  An example of a flexible model that can attain this is identified in the Appendix below.  Tactic: Retractable Rain Covers Additional consideration for weather effects such as rain is needed, which is why in tandem with the heaters, we propose partial covering that is retractable.  Here a vinyl cover can be used similar to   ones used by patios in other restaurants in the Vancouver area.  Constructing a permanent rain cover may be an alternate strategy, however for the temporary consideration of rain in Vancouver, a retractable option is perfectly viable.  Through contact with Daniel, we also understand the need for covering on the patio and are aware of the proposal to purchase umbrellas for sun coverage.  Rain covers can therefore provide all-season accessibility.   BALCONY HEATERSImplementing electric patio heaters● More sustainable alternative● Works as pilot program - testing a portion of balcony to understand usage patterns● 4 heaters, between every 2 tablesRetractable vinyl weather covers● Retractable so only needs to be used when raining or dependent on weather conditionsRAIN COVERSRecommendation 3:OPTIMIZE   BALCONY SPACESituation       Strategy       Recommendations       Risk       MetricsIMPROVE	11    IMPRESS: EFFECTIVE BRAND COMMUNICATION  Through our research, we have found that there is a lack of awareness for the restaurant. Many students do not know what Gallery 2.0 provides and where it’s located. Because of this, we have identified two sub-tactics that would solve the majority of this problem.   Tactic B: Launch a Stamp  Loyalty Card The purpose of the loyalty program for Gallery 2.0 is to generate greater awareness around UBC. Through our survey, we have found that many students value low costs for food. We spectate that these are the students who usually purchase food on campus. This is where the stamp loyalty card comes in. The stamp loyalty card will be given to those who purchase an item over $9. After four purchases over $9, the customer will be rewarded $4 off of their next purchase. We would not detrimentally cost anything. Also,  with the implementation, it’d be beneficial in the long run, as it would increase the number of transactions.  Tactic A: Re-Design of Posters and Creation of Signs An improvement on the communication with the students would tackle this problem. This can be through an implementation of a poster that would better suit the restaurant. Currently, the only advertising within the nest are the blue posters, which are located near the main stairs. They only state the name of the restaurant and where it’s located.  In order for students to better understand what Gallery 2.0 is, the content and style of the poster have to be changed. An addition of a picture of a food item, or the name of the popular dishes at the Gallery, or even stating that it is a restaurant  would better help the students understand what Gallery 2.0 is.  After creating awareness, Gallery 2.0 must deliver it. The implementation of signs and directions that lead the potential consumer to the restaurant would greatly benefit the restaurant. This reduces uncertainty and also generates curiosity within other students as well.  Through effective advertising and communication to the students, this will increase the awareness of the restaurant, thus increasing traffic which in turn creating a ripple effect through students’ word of mouth.    LOYALTY PROGRAMOffering loyalty program to customers● Purpose: To spread awareness throughout UBC● Buy 4 items over $9, get $4 off ● Incentivizes customers to return frequentlyCreating streamlined postering● Communicating more about the Gallery 2.0 brand and services offeredSIGNAGE AND POSTERSRecommendation 4:EFFECTIVE BRAND COMMUNICATIONSituation       Strategy       Recommendations       Risk       MetricsIMPRESS	12          RISKS AND MITIGATIONS  Increased Reliability on Employees More employees will need to be hired as waiters once Gallery 2.0 transitions to a traditional restaurant-style model. A significant risk with this change is the higher reliability on employees. This means employee turnover would have a greater impact on Gallery 2.0’s ability to function. Mitigation: Through offering flexible work schedules during exam seasons, we hope to alleviate the burden work has on busy students who work at Gallery 2.0. This, along with pay increases after each semester, we hope to see less employee turnover over the course of the year.     Taste Profile of Menu Changes Is Not Well-Received by Customers A significant risk of changing the menu is that it may leave regular customers disappointed if they happened to prefer the way it was before the change. Mitigation: Going through a rigorous taste profile plan in coordination with partner restaurant chefs will ensure that the quality of the menu items is not compromised. This will be done in August, so to gauge the response of the market. Once they are deemed sufficient, the menu changes will be ready in September.  Patio Will Continue to be  Under-Utilized After procuring all the resources to make the patio a serviceable place for customers, it is possible that they would rather sit inside.  Mitigation: Given that the front of the restaurant will have an attendant to take customers to a table, they should communicate the benefits of the improved outdoor patio space to the customers, which will lead to a higher usage rate.     RISKS & MITIGATIONSTaste Profile of Menu Changes Is Not Well-Received By CustomersPatio Will Continue to be Under-UtilizedIncreased Reliability on EmployeesIncentives to limit employee turnoverRigorous taste profile tests in coordination with restaurant chefsWait-staff will communicate the benefits of the improved spaceSituation       Strategy       Recommendations       Risk       MetricsHIGHMEDIUMLOWUndermine Operational EfficiencyMarket May Reject ChangesFail to Realize Benefit of Increased CapacityRisk Impact Mitigations	13    MEASUREMENTS OF SUCCESS  The effects of our strategy will be evaluated by both qualitative and quantitative measurements.  Quantitative Gallery will experience growth in revenue (12.6%), average spending, number of customers (21.7%) and time spent per customer per sitting (25%). These metrics should be in line with our strategy in leadership and change of restaurant style. Using the patio throughout more months in the year offers students an intangible asset by having access to one of the only balcony patios on campus. Over time, looking at number of patio bookings and seating can reveal information on how successful opening the balcony can be for Gallery 2.0.   Qualitative When considering sources of heat for the Gallery 2.0 balcony, we suggest an electric heat source instead of a conventional source such as natural gas.  Electricity adheres strongly to corporate social responsibility values on sustainability, fully realizing the AMS’ strong association with SEEDS initiatives. Electric sources have virtually zero atmospheric emissions, with negligible emissions in production, whereas conventional heaters make use of harmful fossil fuels, emitting greenhouse gas that harms the ozone layer (SEEDS Report, 2014).  The impact of Gallery 2.0 being a leader in sustainable practices is something difficult to measure in terms of success. The number of social media endorsement/ comments could also provide certain insights, however we remain neutral with regards to the accuracy and significance of the data.     THE METRICSQuantitativeQualitative● Percentage of Budget Used: 64%● Revenue Growth: 12% (Moderate Forecast)● Transaction Growth: 21%● Average Spending: 10%● Increase in Averaging Sitting Time: 25%● Number of Extra Staff Hired: 4 Waiter & 1 Chef● Social media endorsements & comments● Leader in sustainable practicesSituation       Strategy       Recommendations       Risk       Metrics	14    CONCLUSION  From operational bottlenecks to leadership, non-optimized space to low brand awareness, we hope to capitalize the opportunities through a 3-step process: Initiate changes in operation bottlenecks and leadership, improve restaurant infrastructures and build an impressive brand to establish a better customer experience, and achieve sustainable revenue growth for Gallery 2.0.   Restaurant Style Chef Infrastructures Brand CommunicationsIMPRESSINITIATE IMPROVEOperation Bottlenecks & Leadership Unused Balcony Lack Branding & AwarenessWaitersMenuHeatersRain CoversLoyalty ProgramPosters & SignsPartnershipsAPPENDICES I - SWOT ANALYSISII - BUSINESS MODEL CANVASIII - ALTERNATIVE TACTICSIV - PARTNERSHIP LANDSCAPEV - BALCONY & HEATER ANALYSISVI - MARKETING POSTER & SIGNSVII- FINANCIAL PROJECTIONSVIII - FINANCIAL PROJECTIONSIX - TIMELINE	15    SWOT ANALYSIS  In order to establish a better understanding of the current situation Gallery 2.0 finds itself in, we employed a SWOT analysis.  After analyzing strengths, weaknesses, opportunities, and threats based on our own primary research as well as what we could    gather through meeting with the clients, we were able to identify what core opportunities were there looking forward.  This analysis helped to inform our strategies so that we could focus on key aspects of initiating operational changes, improving existing infrastructure  and use of space, and impressing customers through upgraded marketing tactics.   STRENGTHS➔ MENU VARIETY➔ INEXPENSIVE PRICES➔ COMFORTABLE SEATING➔ UNIQUE SPACE IN NEST➔ ACCESS TO PATIOWEAKNESSES➔ LESS ACCESSIBLE DUE TO POSITION ON 4TH FLOOR➔ INCONSISTENT SERVICE➔ LONG WAIT TIMES➔ BOTTLENECKS IN KITCHENOPPORTUNITIES➔ LARGE DINING SPACE FOR CUSTOMERS, POTENTIAL TO BOOK SPACE FOR EVENTS➔ BALCONY PATIO WITH A GREAT VIEWTHREATS➔ UBC FOOD SERVICES A DIRECT COMPETITOR - REOPENING OF THE SUB➔ SIMILAR FOOD OPTIONS EXIST WITHIN THE NESTAPPENDIX I: SWOT ANALYSIS	16    BUSINESS MODEL CANVAS  Our next model to help conceptualize Gallery 2.0’s business model was this canvas where we could identify key aspects of how Gallery 2.0 conducts business.  In doing so we gained   A more holistic idea of the operations allowing us to ensure our strategic tactics were aligned with the value proposition of Gallery 2.0 and also AMS as a greater whole.  Through contact with our   client we were able to narrow down our focus and streamline this process.  KEY PARTNERSAMSSEEDSAPPENDIX II: BUSINESS MODEL CANVASKEY ACTIVITIESFOOD PREP, BAR, RESTAURANT SERVICE, EVENTSDELIVER QUALITY FOOD IN A RELAXED ATMOSPHERE AT AFFORDABLE PRICES STUDENTS, STAFF, UBC VISITORSKITCHEN/BAR STAFF, INGREDIENTS, SPACE, EQUIPMENT, SEATINGQUICK SERVICE, EFFICIENCY, QUALITY FOOD AND DRINKSSOCIAL MEDIA, ON-CAMPUS ADS, STUDENT INTERESTIMPORTANT COSTS: MATERIALS, INGREDIENTS, OVERHEAD, EQUIPMENT, SALARY, TRAINING, MARKETING, RESEARCH COSTSFOOD AND ALCOHOL BEVERAGE SALES, EVENT BOOKINGSKEY RESOURCESVALUE PROPOSITIONCUSTOMER RELATIONSCHANNELSCUSTOMER SEGMENTCOST STRUCTURES REVENUE STREAMS	17    ALTERNATIVE TACTICS  Implement Self-Serve Kiosks Arguably a less risky proposition, the self-serve kiosk would decrease the amount of time customers wait in line to place their order. This doesn’t require additional human resources, rather a high upfront cost. However, we rejected this strategy, as it would not      complement Gallery 2.0’s laid-back and community-centric atmosphere. In addition, this approach would continue to not allow for upselling, a significant missed opportunity to bolster sales.   Hire A Chef  A simpler approach than seeking a partnership with a restaurant, hiring a sous chef would be too costly and too time-intensive in trying to find a chef that fits with Gallery 2.0.  APPENDIX III: ALTERNATE TACTICSALTERNATIVE TACTIC 1: SELF-SERVE KIOSKS➔ COMPLEMENTARY TO EXISTING BUSINESS MODEL➔ ALLEVIATE WAIT TIME FOR CASHIER➔ LOW RECURRING COSTSALTERNATIVE TACTIC 2: HIRE SOUS CHEF➔ PROVIDES LEADERSHIP IN KITCHEN➔ EXPERIENCE CAN IMPROVE QUALITY➔ INCOMPATIBLE WITH  COMMUNITY-CENTRIC ATMOSPHERE➔ MISS OPPORTUNITY FOR UPSELLING➔ NOT FEASIBLE TO OFFER A COMPETITIVE SALARYBENEFITSREASONS FOR REJECTIONBENEFITSREASONS FOR REJECTION	18      APPENDIX IV: PARTNERSHIP LANDSCAPEPARTNER RESTAURANT GALLERY 2.0 UBC HOME ECONOMICSGIVES➔ SOUS CHEFS➔ RIGHT TO PRODUCE EXCLUSIVE MENU ITEMSRECEIVES➔ ADVERTISING TO STUDENTS➔ TRAINED CHEFS➔ EXCLUSIVE MENU TESTINGGIVES➔ REIMBURSE PARTNER RESTAURANT FOR CHEF’S HOURSRECEIVES➔ SOUS CHEF➔ ADDITIONAL TRAINEE CHEFSGIVES➔ TRAINEE CHEFSRECEIVES➔ EDUCATION➔ COMPENSATION➔ POTENTIAL FUTURE JOB PROSPECTS	19    ADDITIONAL BALCONY INFORMATION  Gallery 2.0’s patio has a fairly reasonable layout but is notably quite large.  In order to execute the heaters, we offer a pilot program for the first year, to heat partial areas of the balcony, implementing four heaters to begin with.  Based on our analysis of comparative models, this should be able to heat up to 12 tables sufficiently, covering a significant portion of the patio.   One model we suggest is the EnerG+ Telescopic Free-Standing Infrared Heater Priced reasonably ($249) and able to provide adjustable levels of energy and heating means that this option gives Gallery 2.0 the greatest flexibility for the pilot program launch.  Due to lack of infrastructure, we opt for a free-standing model as opposed to a hanging model which can also   allow for repositioning of the heaters where it is deemed best suited.  Encouraging customers to be seated at the patio works in tandem with the role of hosts in a traditional restaurant style.  Advertising the patio heaters as sustainable can adhere to sustainability goals and values.   Model Source:  SEEDS Report:  Price Estimation for Vinyl Weather Covers:   APPENDIX V: HEATERS AND BALCONY INFORMATIONImage: AMS Conferences & Catering: Home Depot:	20      APPENDIX VI: MARKETING POSTER & SIGNS	21    FINANCIAL PROJECTIONS PT. I  General Assumptions: 1. All values are denoted in Canadian Dollars  Cost Assumptions: 1. Waiters are paid slightly above minimum wage ($11) 2. Waiters work 4 hours/ shift, 1 Shift/ day, 2.5 days/ week, and 16 weeks (1 term)/ year 3. Chefs’ annual salary is 33000, working 8 hours/ day, 5 days/ week, 52 weeks/ year 4. 1 Kilowatts costs $11/ hour   APPENDIX VII: FINANCIAL PROJECTIONSReferenced Total Cost/ UnitReferenced HoursCost/ HourHours Required by Gallery/ YearTotal Cost/ UnitUnits RequiredTotal Cost for Gallery/ YearWaiters / 160 11 160 1760 5 8800Chefs (Partnership) 33000 2080 16 416 6600 1 6600Heaters (Electric) 249 / / / / 4 996Electricity for Heaters / / 7.679 450 3455.55 4 13822.2Rain Covers 1500 / / / / 1 1500Posters & Signs 5 / / / / 5 25Loyalty Program / / / / / / 337.59632080.796Budget 50000Strategy Cost 32080.796% of Budget 64.16%Recurring Cost 29247.2% of Budget 58.49%	22    FINANCIAL PROJECTIONS PT. II  Revenue Assumptions: 1. Strategy effects are estimated based on the moderate growth model 2. Since Gallery only opened for 6 months in 2016, the provided 2016 data requires adjustment to perform accurate forecasting   APPENDIX VIII: FINANCIAL PROJECTIONSInitial 2017 ProjectionsEstimated Annual Revenue Growth (Conservative - 1%)Estimated Annual Revenue Growth (Moderate - +3%)Estimated Annual Revenue Growth (Optimistic - 8%)Increase in Revenue (Conservative)Increase in Revenue (Moderate)Increase in Revenue (Optimistic)Operation Bottlenecks 61373.66 1.00% 3.00% 8.00% 613.7366 1841.2098 4909.8928Upselling 61373.66 15.34% 17.34% 22.34% 9413.7366 10641.2098 13709.8928Loyalty Program 61373.66 1.55% 3.55% 8.55% 951.3326 2178.8058 5247.488810978.8058 14661.2254 23867.2744Conservative Moderate OptimisticIncrease in Revenue 10978.8058 14661.2254 23867.27442016 Revenue 33759.6 33759.6 33759.6Projected 2016 Revenue 67519.2 67519.2 67519.2Projected 2017 Revenue 61373.66 61373.66 61373.66Initial Projected 2017 Revenue Growth -9.10% -9.10% -9.10%Strategy Projected 2017 Revenue Growth 7.16% 12.61% 26.25%Incremental Change Compared to Initial Projections 16.26% 21.71% 35.35%Projected 2016 Transaction 37042016 Average Spending 18.2287257Projected Increase in Transaction 804.2923921Projected Transaction Growth 21.71%	23    TIMELINE  Initiate Hiring: We decided to hire waiters every four months, the first month into a new school semester. The reason for this is to first see if there is a need for new hires. The hiring will be based on the amount of employees that have decided to quit in the previous term.   Partnerships: There will be 3 stages into having a restaurant partnership. First, from April until late June, this time will be used to find potential partners who would be interested in working with Gallery 2.0. After, 2 months will be used to finalize the partnership through a contract.  Then, in September, this is when the partnership will take place, where the kitchen team will be under a head sous chef.   Menu: Before publishing the menu, from fried items to grilled, the restaurant will need to check if there is a demand for it. This will happen during the summer period, where they will get to test the items before school rolls in. Alterations will be made after testing the menu. This will happen again during the two months before second term comes in. This is to check if there are changes that should be made to the menu.    Improve To order to successfully optimize the unused balcony space, 2 months will be needed to deliver and install amenities and delivering it to Gallery 2.0. The pilot program will take place right when school starts.  . Impress Implementing the loyalty program, marketing posters and signs in April will allow Gallery 2.0 to increase their awareness within UBC right away. The loyalty program will go year round. As for the marketing posters, they need to be redesigned every 3 months for a fresh look. The re-design of the posters could be as simple as changing the pictures, or adding a specific food item promotion.      APPENDIX IX: TIMELINEINITIATEHire WaitersEstablish ConnectionsApprove PartnersRolloutMenu TestingPublish MenuVetting & procuring AmenitiesPilot Program (Heaters, Covers)Loyalty ProgramMarketing Posters & SignsIMPROVEIMPRESSDeliverables Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec       Jan       Feb       Mar 


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