Pizza Pronto Analysis
Pronto Pizza is facing stiff competition from a national chain restaurant that promises a 30-minute delivery backed by a money-back guarantee. In order to remain competitive, Pronto Pizza is considering the launch of a 29 minute guarantee. However, the company must be conscious of lost revenue due to a high number of deliveries exceeding the 29 minute threshold. To help in the decision making process, management has concluded that a 25 minute average delivery time will result in 5% of pizzas being delivered over the 29 minute threshold.
This paper will present the findings of this study in greater detail and make recommendations to management. Specifically, after careful analysis of the available data, management should reject the 29-minute guarantee. In addition, this paper will seek to better understand the data and present solutions Pronto Pizza may want to consider to remain competitive.
Collection of Data
The data for this report was gathered over a two month period. During the first month, the data was collected in person through direct observation. The time required to deliver the pizza was broken down into three categories: preparation time, wait time and delivery time. The summation of these three metrics is total delivery time. For the second month, similar data set was collected through indirect observation. Rather than travel on each delivery, the owner would phone customers and offer a coupon if they would call with the exact delivery time. It is important to note that the presence of the owner during the first month of data collection may have unfairly influenced the data. In other words, the driver may have driven faster in order to impress the owner. Since the kitchen staff also knew what orders were being sample this same bias may also be present in the other data sets.
Additional information that would allow management to make a stronger case...