Second Run Pizza
Strategy and Implementation Summary
Our strategy is simple, we intend to succeed by giving our target customers a combination of great food and a relaxed enjoyable environment that creates a memorable experience.
5.1 Competitive Edge
Our competitive edge is two fold:
- The experience of Robert and Judy in managing Second Run Pizza.
- The agreement with Premiere Film Distributors which have agreed to supply Second Run Pizza with second run movies.
Co-owner Judy Fillmore has been a fixture of the city’s restaurant scene for the past 15 years. She managed four successful restaurants and has received industry accolades for her operational excellence. She is now a highly sought consultant on improving restaurant operating efficiency and work flow. Her client list include the city’s best restaurants.
Robert Williamson has 20 years of experience in the movie theater industry. Robert was the manager of the city’s largest multiplex for seven years before taking a position with Premiere Film Distributors where he served as a regional distribution coordinator for six years. When Robert took over the challenge of managing the Lighthouse Theater, the business was failing and losing significant market share to the larger chain theaters. Under his management, the theater regained its vitality as an Indie film center. Usage levels increase by 200% over a two-year period and the theater soon became a key feature in the city’s cultural community. The combination of Judy and Robert’s experience will ensure that Second Run will be a unique competitive force in both the theater and restaurant industries.
The owners have negotiated an agreement with Premiere Film Distributors that will assure that the Second Run will have best available second run films. Premiere Film Distributors will provide the films and will receive 75% of the admission revenue. This is a better return for the distributor who normally receive only 50% of admission revenue for second run films. In exchange, Second Run will get the films most popular with their target customers.
5.2 Sales Strategy
Our initial sales strategy is to flood our target consumers with free movie coupons for the first three months of operation. The $1.50 charge for the film will be waived with the coupon. These coupons will be in the city’s daily paper as well as the student papers of Claremont University and Jefferson College.
The film charge is really incidental. Second Run’s profits will come from food sales. Menu pricing will reflect this focus. Our prices will be higher than a traditional Pizza restaurant but we believe the unique dining environment will justify those prices with our customers.
On the traditional slow days (Monday and Tuesday) we will offer cheaper fare (spaghetti) and market these days to college students as spaghetti movie night. In addition, we will have two for one date nights, where couples will only be charged for one admission.
Sales projections for this plan are presented in the following topics.
5.2.1 Sales Forecast
This chart represents our forecast for income on a monthly basis. The table presents yearly expected sales. Complete monthly forecast figures for the first year are presented in the appendix.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Unit Sales | |||
| Movie Admissions | 78,400 | 90,000 | 100,000 |
| Meals | 25,725 | 33,000 | 40,000 |
| Other | 12,000 | 13,000 | 14,000 |
| Total Unit Sales | 116,125 | 136,000 | 154,000 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Movie Admissions | $1.50 | $1.50 | $2.00 |
| Meals | $20.00 | $20.00 | $22.00 |
| Other | $5.00 | $5.00 | $5.00 |
| Sales | |||
| Movie Admissions | $117,600 | $135,000 | $200,000 |
| Meals | $514,500 | $660,000 | $880,000 |
| Other | $60,000 | $65,000 | $70,000 |
| Total Sales | $692,100 | $860,000 | $1,150,000 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Movie Admissions | $1.20 | $1.20 | $1.60 |
| Meals | $3.00 | $3.00 | $3.00 |
| Other | $0.50 | $0.50 | $0.50 |
| Direct Cost of Sales | |||
| Movie Admissions | $94,080 | $108,000 | $160,000 |
| Meals | $77,175 | $99,000 | $120,000 |
| Other | $6,000 | $6,500 | $7,000 |
| Subtotal Direct Cost of Sales | $177,255 | $213,500 | $287,000 |
5.3 Milestones
The following table lists important program milestones, with dates and budgets for each. The milestones schedule indicates our emphasis on planning for implementation.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Tables and Chairs | 11/4/2001 | 11/13/2001 | $3,000 | ABC | Marketing |
| Decorations | 11/4/2001 | 11/18/2001 | $2,000 | ABC | Marketing |
| Painting/reconstuction of Resturant | 11/1/2001 | 12/22/2001 | $25,000 | ABC | Web |
| Food for Opening | 12/28/2001 | 12/29/2001 | $1,000 | ABC | Web |
| Production of Menus | 11/13/2001 | 12/16/2001 | $400 | ABC | Department |
| Buying Supplies for Kitchen | 11/16/2001 | 12/20/2001 | $5,000 | ABC | Department |
| Set Up Projection Equipment | 12/20/2001 | 12/28/2001 | $40,000 | ABC | Department |
| Establish Film Schedule | 11/1/2001 | 12/28/2001 | $1,000 | ABC | Department |
| Staff Hiring | 12/4/2001 | 12/22/2001 | $0 | ABC | Department |
| Staff Schedules | 12/25/2001 | 12/28/2001 | $0 | ABC | Department |
| Distribution of Advertising | 12/5/2001 | 1/1/2001 | $0 | ABC | Department |
| Totals | $77,400 | ||||
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