10

TOPIC: LAYOUT PLANNING OF ‘BROADWAY PIZZA’ TO

SERVE 3000 CUSTOMERS DAILY WITH AN EXPECTED
GROWTH RATE OF 30% EACH YEAR

COURSE: OPERATION AND PRODUCTION MANAGEMENT.

CLASS: BBA– 6E.

GROUP MEMBERS
MUHAMMAD ANAS
HAROON ARSHAD
UROOBA SAEED KHAN

SUBMITTED TO: SIR IRFAN ALI.

DATE OF SUBMISSION: MAY 17TH, 2019.
Layout planning of Broadway Pizza
 Table Of Content

Contents
Layout planning of Broadway Pizza .......................................................................................................... 3
Letter of Transmittal ................................................................................................................................ 6
Acknowledgement................................................................................................................................... 7
Abstract .................................................................................................................................................. 8
Aims and objectives................................................................................................................................. 8
Importance of layout planning ................................................................................................................. 9
INTRODUCTION ....................................................................................................................................... 9
Operation Management Process: .......................................................................................................... 10
Typical Pizza Process:......................................................................................................................... 11
Limitations of the study ......................................................................................................................... 11
Approach of the study ........................................................................................................................... 12
Feasible methods of the approach: .................................................................................................... 12
Selected Approach For The Study: ..................................................................................................... 12
Project Description: ............................................................................................................................... 12
Inventory Management: ................................................................................................................ 12
Layout Design and Strategy:........................................................................................................... 13
Location Strategy: .......................................................................................................................... 13
Process and Capacity Design: ......................................................................................................... 13
Utilization: ......................................................................................................................................... 13
Utilization Of A Workforce: ............................................................................................................ 14
Utilization Of Workspace: .............................................................................................................. 14
Utility expenditure: ........................................................................................................................ 14
Methodolgy........................................................................................................................................... 14
Procedure of the Research: ............................................................................................................... 14
Exploratory Research: ........................................................................................................................ 15
Formulation of Hypothesis:................................................................................................................ 15
Sampling: .......................................................................................................................................... 15
Research tools: .................................................................................................................................. 15
Primary data .................................................................................................................................. 15
Secondary data .............................................................................................................................. 15
 Field work: ..................................................................................................................................... 15
Organization of data: ..................................................................................................................... 15
Layout ................................................................................................................................................... 16
Layout Description: ............................................................................................................................ 16
Service Area:.................................................................................................................................. 16
Dining Area: ................................................................................................................................... 16
Kitchen: ......................................................................................................................................... 17
Validation .............................................................................................................................................. 17
Conclusion:............................................................................................................................................ 17
Recommendations: ............................................................................................................................... 18
Appendix 1: ........................................................................................................................................... 19
Appendix:2 ............................................................................................................................................ 20
Cause and effect diagram .................................................................................................................. 20
References: ........................................................................................................................................... 22
 Letter of Transmittal

To
Sir Irfan Ali
Senior Assistant professor,
MS Department,
Bahria University
Karachi

Respected Sir,

We are obliged to submit the attached report which we have named as “Layout planning of
Broadway Pizza” in partial fulfilment of requirements of our course. The main purpose of this
report is the application of layout planning techniques during the manufacturing process of pizza.
This research gave us the bold concept about layout planning and extended our knowledge base.
We hope that the report is acceptable to you because we have prepared it after a detailed
discussion with the restaurant manager. Given the time constraint and the available resources, the
report is best prepared and gives an overview to the reader about the topic.

Yours Sincerely,
Urooba Saeed Khan
Haroon Arshad
Mohammad Anas
 Acknowledgement

“ALL PRAISE TO ALLAH THE MOST BENEFICIENT THE MOST MERCIFUL”.

We are the students of BBA 6E, Bahria University Karachi Campus. Foremost, we are thankful
to Almighty ALLAH for giving us strength to complete this report. We are thankful to Mr.
Ahsan for his valuable contribution in our report which expanded our horizon related to layout
planning. We are also thankful to our operation and production management course instructor Sir
Irfan Ali for his concern, monitoring, encouragement and providing a roadmap in our study and
for giving us opportunity to do project report on topic “Layout planning” of ‘Broadway Pizza’, a
pizza restaurant to serve 3000 customers daily with an expected growth rate of 30% each year. It
would have not been possible without all of our group members who helped and managed to
complete the report in the given frame of time.
 Abstract

The purpose of this report to do a layout planning for setting up a pizza restaurant serving 3000
customers daily with the expected growth rate of 30% each year. This report will provide
knowledge about how to place and plan the layout setting of a restaurant. In this report, we will
also deal with the decision of implementing long term and short term layout planning. There are
various resources that are needed to be forecast which involves space allocation, positioning,
designing, assembly line and appliance allocation. This report will also enlighten that why
restaurants need of layout planning, how restaurant layout supports operational workflow and
how it makes the restaurant kitchen more efficient. You will also get to know about what hurdles
take place during the placement and how to overcome these obstacles in order to perform proper
operations.

Aims and objectives

Aims:
• Our main objective of this report is to meet our course requirement.
• To understand that why layout planning is important for pizza restaurants.
• To provide good customer service.
• To overcome the problems that can affect pizza restaurant’s layout planning.
Objective:
• To understand the need of new facilities so as to provide adequate customer services to people
as per their demand.
• To understand the maximum level of work that a pizza restaurant is able of completing in a
certain time period.
• To efficiently manage the customers according to resources.
 Importance of layout planning

Why layout planning is important for pizza restaurants?

Many factors play a role in ensuring a great customer experience. While we always focus on the
food and the service, we often overlook the restaurant layout, which in reality plays a crucial part
in the overall experience of the customer. Restaurant interior design has also been known to
influence the ordering behavior of customers.
It is said that: the way the restaurant layout is sketched will have a huge impact on your
restaurant operations. The efficiency of the layout will reflect in the ease with which operations
are carried out in your restaurant.
Here are some reasons why investing in a well-planned restaurant layout is a must:-
• Circulation and Movement
• Connectivity between the Restaurant Frontend and Backend
• Human Comfort
• Optimum Utilization of Space
• Safety

INTRODUCTION

Broadway initiated its operations in Pakistan with its first restaurant back in 2013. The journey
that started then continues to this day, as the chain consists of over 40 outlets spread all across
Pakistan, and is arguably the largest restaurant chain in Pakistan. Karachi the business hub of the
nation also serves as the most populous consumer focal point for Broadway Pizza in Pakistan.
The Clifton outlet of Broadway has won numerous regional rewards for exceptionally high sales
volumes. The journey of Broadway Pizza was started in 1961 when John Spallacci arrived in
Minneapolis from Gorviano Valli, Italy. Broadway Pizza is famous for its old world flavor in
every pizza and flourished throughout the world (Burgoine et al. 2014). Broadway Pizza serves
pizzas as well as many other selections including burgers, appetizers, chicken sandwiches,
hoagies, pasta, salads, and desserts. The Broadway Pizza has something for everyone from kid’s
meals, happy hours, mid night deals, delivery, take-out and buffets. Broadway Pizza is serving
for more than 60 years of great dinning and fun to their customers. Broadway Pizza is the newest
edition in the Pakistan food market with the combination of modern methods to create traditional
Italian pizza. The chain has opened outlets in major cities of Pakistan (three in Karachi and two
in Lahore) and is expecting to further open three to five outlets in the next one year’s time span.
There are total 24 branches of Broadway in Karachi.
The outlet which is selected by us for the preparation of this academic report is located on
Farhan Classic, Gulistan e Jauhar, Block 12, karachi, Pakistan. Broadway Pizza caters the all
tastes and is equally loved by all age groups. The outlet operates for seven days a week from 11
am to 3 am. Usually, 6 pm to 11 pm is packed with while 112:30 pm to 4 pm is full with college
students and business personal with a total capacity to accommodate 100 plus customers with on
serve 13 staff (waiters and kitchen workforce). BBQ pizza, Chicken Fajita and Hot & Spicy
pizza are the flavors most loved by the customers and remain in huge demand. The pizza
restaurant is famous for providing midnight deals, Ramadan offers and special weekend
packages to all the target segments. The outlet also provides a friendly environment for arranging
birthday’s, engagement ceremonies, business meetings (only in business lounge), and special
events with prior reservations.
Broadway Inc. is the largest pizza restaurant company in the world in terms of both the number
of outlets and the percentage of market share that it holds. A subsidiary of PepsiCo, Inc., the
company oversees more than 11,000 pizza restaurants and now delivery outlets only in Pakistan.

Operation Management Process:

Managing operations and logistics in an organization is vastly essential in order to ensure the
requirements and needs of the customers on daily basis. Operations management is used by
organizations to plan and organize the products and services production. Operations management
is also helpful in human resources, accounting, finance and marketing. An organization in order
to perform logistics operations effectively and productively required timely and proper
management along with other multiple areas such as banking, finance, strategic management,
etc. The term “operations management” refers to the management of production process and
focuses on internal activities and organizational structure that creates the organizational
performance. This also supports the processes that are useful in managing organizations
efficiently. Broadway Pizza, like any other organization, involves strategies which are vital for
the company’s status to increase towards the top position in this quick service competitive food
industry. Broadway Pizza must address the strategic decision of operations management for
organizational development through the years.
Typical Pizza Process:

correct pizza
pizza order toppings sliced and
base cooking
received Added boxed
selected

Limitations of the study

Limitations of the study are important to understand for placing research findings in context,
interpreting the validity of the scientific work, and ascribing a credibility level to the conclusions
of research. This goes beyond listing the magnitude and direction of random and systematic
errors and validity problems. The limitation of the research are as follows:
• The research is limited to Gulistan-E-Johar outlet only. If the study was conducted in
other areas also the picture might have been different and surprising.

• Time was major constraint.

• Limited information was available.

• The limited access on the data was available.

• Limited time and budget to complete the project.

• Group availability and communication at certain point of time was not easily available.
Approach of the study
Feasible methods of the approach:
As there are several approaches to carry out a research according to the research courses we have
studied, the feasible research alternatives we considered are:

• Study can be conduct by interviewing employees, manager, former workers, respondents

of Broadway Outlet called Primary data. By asking them relevant questions and their
views about business.
• Or we can also collect data from internet called Secondary data. In Secondary data
researcher collect information from internet which based in past research.
• We also use combination of the both approaches (Primary data and Secondary data).

Selected Approach For The Study:

We have selected both primary and secondary approaches for our researches:

• Using secondary data for research include both time and cost saving.
• Using primary data for research is collecting information for the specific purposes of
their study. Researchers collect the data themselves, using surveys, interviews and direct
observations.

Project Description:

Q1: What strategies should be taken for the satisfaction of the customers in the future?
Broadway Pizza main concern is to satisfy the target customer’s quality expectations. They
carefully outsource wheat, dough, toppings and seasonings from the 4 suppliers that complies
their quality standards. To address this concern, Broadway Pizza also maintains product tests on
regular basis and collects customer feedback via short surveys about their products and
experience at the outlet.

Inventory Management:
–Broadway Pizza minimizes inventory management costs and stock outs through well automated
management system to ensure regular supply of ingredients to their restaurants. Broadway Pizza
addresses this need through localized inventory practices based on restaurant performance.
Layout Design and Strategy:
Broadway Pizza addresses this strategic decision through efficient workflows and layouts.
Layout is drawn to maximize workflow efficiency keeping aesthetic look, foodie theme, friendly
ambiance, comfort, space utilization and outstanding customer experience. Broadway Pizza store
layout is designed to cope with the average peak hour movement of goods and people for at least
three days. A typical layout of Broadway Pizza restaurant includes: Reception, Office, Kitchen -
Cold storage, Assembly line, and Packing area (Ijaz, Supply Chain Manager, Broadway Pizza).

Location Strategy:
Broadway Pizza is concerned for its strategic location for optimize market reach. The restaurant
has targeted upper class with focused urban and town centers (CEO, Broadway Pizza).
Broadway Pizza also provides franchise opportunity to interested clients for whom brief SOPs
are available on their website or they can fill out a form for contacting the management
(Broadwaypizza.com.pk). Restaurant location is used as a criterion for evaluating franchise
proposals.
Process and Capacity Design:

Broadway Pizza keeps an eye on the sudden demand and sales increase at its outlets on the
weekends and vocations. The objective is to implement programs that maximize the process
productivity and capacity utilization by monitoring the flexibility to adjust personnel and
products production demand. As observable in their restaurants, the brand is efficient to provide
the flawless services to their customers (Ijaz, Supply Chain Manager, Broadway Pizza).

Q2: How financial resources are allocated while doing the capacity management in the
restaurant?
The cost of the services is economical compared to the competitors (Pizza Hut, Dominos, Wall
Street Pizza, Italian Pizza, etc) in the town with best quality. The restaurant incurred prevention
costs (resulted with reducing the potential for defective parts for training and quality
improvement program), internal costs (occur from defective parts or service before delivery to
customers) and external costs (associated with after delivery of defective product/pizza).

Q3: How should be the restaurant’s service satisfy customer?

The brand provides continuous on job standardized training programs along with performance
incentives to the best employee of the month. A dedicated customer support center comprised of
three members’ and field teams (riders) are available to take online or telephonic orders for home
delivery (Aamir, HR Manager, Broadway Pizza).

Utilization:
The action of mating practical and effective use of something.
Utilization Of A Workforce:
U = Average output rate
Minimum capacity

85 employees are worked on the average while the restaurant’s capacity to operate at 100
employee at optimal output.
U=
U = 85% of the workforce is utilized.

Utilization Of Workspace:
18 tables are placed at the dining area where the capacities of 22 tables.
U=
U = 81.81% of the workspace utilized.

Utility expenditure:
Utility expenditure i.e telephone, electricity, gas and water expense will be permanent cost.
Maintenance cost will also be included.

Methodolgy

This chapter describes how I gathered information for research work. In our research to analyze
the layout planning of a pizza restaurant with an expected growth rate of 30% we have used
different tools which includes the primary and secondary sources. The aim of methodology is to
tell the research procedure, overall research design, data collection and analysis procedure. In
order to learn immense importance and character of layout planning in restaurants we put our
best efforts to gather information about how a restaurant with great demand for their services
plan their operations and strategy and does a layout planning. We visited Broadway pizza
Gulistan-E-Johar Branch Karachi. We did interview from this branch manager and some of the
employees working there and the customers too who gave us the important information related to
our topic.

Procedure of the Research:

To study the layout planning at a pizza restaurant which we choose Broadway as a place of our
study. The major set of information we gathered from interviewing the branch manager and self
observation and internet records which are attached in this report.
Exploratory Research:
It is an exploratory research because the data with respect to planning, strategies and operations
is gathered from the following methods:
• Self observation

• Internet

• Personal interviews

Formulation of Hypothesis:
Since it is an exploratory research in nature so we have not generated hypothesis in this study.

Sampling:
The size of our sample is small because the only relevant people are considered in this research
work. We visited pizza restaurant in order to gather data which was taken from top management
to employees working there and the customers too about service too for getting the information
about their growth rate.

Research tools:
The research comprises of two sources of gathering information that is primary and secondary
data.

Primary data
Organized set of questions with respect to layout planning were asked from the officials
of the field to collect the information to witness what actually is happening at the facility.

Secondary data
Surveys, interviews and information present on internet were also used as a research tool
for our research.

Field work:
Interview with Mr. Rizwan (branch manager) and other employees was conducted on May 11th,
2019 during evening. We conduct on that time when they can respond us easily.

Organization of data:
Research design, field design and field work are undertaken efficiently. The interview questions
and schedule were already designed to obtain the desire information which leads to dram
conclusion and recommendations. We were clearly identified that from whom we have to gather
data and the organization of data for further analysis.
 Layout

Designing a restaurant floor plan involves more than rearranging tables. Your restaurant layout
both supports operational workflow and communicates your brand to patrons.

Layout Description:
The departments in Broadway Pizza restaurant are as follows:
• Service Area
• Kitchen Area
• Dining Area

Service Area:
Service Area has Hybrid layout. The service area consists of three sections
• Customer complaint section; where customer makes complain about the problem in either
food or service.
• Safety and quality assurance section; assures that the food and services that are provided
are safe as well as of good quality.
• Customer service representative section; CSRs are 24/7 available on phone and mainly
receives customers’ orders and forward it.

Dining Area:
• Reception: It is on the very right from the entrance door on the ground floor and
receptionists asks customer for their desired table, note the issues that any customer faces
and provide them all the necessary information which has been asked. It has line flow
layout

• Waiting Area: The waiting area is on the left side of the entrance on ground floor and has 8
chairs for the customers to wait. It has line flow layout

• Dining: The dining area is small on the ground floor. There are about 4 tables with the
space of 6 person each on the ground floor and on the first floor there are 14 tables with
same capacity. 6 tables are places on the left side dining area and 8 tables are places on
the right side. It has continuous layout
Kitchen:
Kitchen mainly has Hybrid layout.
• Preparation: It is done by the junior chefs in the early times of the day. A small region is
covered for preparation and is connected to the main cooking area of the kitchen.

• Cooking: It is done by the senior chefs according to the demand and orders. Ovens,
ranges, fryers and grills are used cook. Cooking area also have customized counters fixed
through the walls for space.

• Fridge: There is a large freezer as well for the storage of vegetables and cheese.

• Storage: Storage room is different and it has a gate from the kitchen. Storage room has all
the necessary stuff including high quality utensils, oil, sauces etc.

Validation

The kitchen is the heart of any restaurant. Without a functional commercial kitchen, restaurant
owners would be hard pressed to provide excellent food in a timely manner for customers. This
refers to validation of 1000 customers daily. If we can sell a healthier pizza that’s a pretty good
validation. We observed in Broadway Pizza that it is not enough for them, they need a vision for
a more efficient planning and strategies according to the daily demand of customers. There
should be training course for cooks in order to capture value and give more benefits to customers
to feel them prior to you. It is also important for the product development staff to include
microbiologist and engineers on the process validation team. The act of validating cooking
instructions is about ensuring the safety and quality of the food. The primary causes for the
failure in validating instructions result from disconnects among the various functions within the
structure. The validation process works best when it is executed by a multidisciplinary team.
Proper layout planning is important for proper functioning. Layout planning leads to plan the
whole process of business. We would not let the compromise on taste for increasing growth rate
and proper layout planning during manufacturing process in less lead time.

Conclusion:

Our Report is on “Layout planning of Broadway Pizza to serve 3000 customers daily with an
expected growth rate of 30% each year”. So that's why we visited one of the famous pizza
restaurants in Pakistan that is Broadway.
Broadway Pizza is now Pakistan’s biggest restaurant chain that has successfully made its place
all over the country and in the hearts of its people. Having eighty stores in twenty-four cities,
Broadway Pizza endures to deliver the best food experience to its customers throughout Pakistan
and provide them a warm and welcoming environment. Broadway Pizza understands the
importance of knowing where your food comes from; hence the goal is to cater the customers
with good quality ingredients that has been at the core of Broadway Pizza.
For knowing their layout planning we interviewed their few branches and talk with their
managers and employees , they told us about their daily operations starting from by telling their
employees to that they accelerate their performance to serve the best to the customers after that
they assure the quality and the taste according to the Pakistani people after that they are serving
more than 3000 people daily they have to fast and have good supply chain because serving
people is a difficult job that’s why they sets the time for delivery as well as for dine in people
and in limited time they have to serve good quality food. They have a quite powerful supply
chain for their products because they a small mistake can ruin their quality of food which they
cannot afford that's why they use fresh thing food in pizza to maintain their quality.
According to our group point of view it will definitely get more pace in their growth rate because
they are try to serve more cities and prices they are setting according to Pakistani market will
also help them because they had created a good image by showing their quality and their layout
clearly show it will not be difficult for them.
We live up to the commitment of providing superior restaurant quality food. We believe that our
customers should not only enjoy the best food experience at Broadway Pizza but should get good
value for money too as we are ready to take up the challenge to cater to almost every geographic
area in Pakistan. Broadway Pizza values its customers and we try to give them a whole new
experience of food with scrumptious and exciting pizza flavors as the brand is known as the
market leader in food innovation and we want to keep our customers happy and satisfied.

Recommendations:

After thoroughly studying Broadway Pizza case in Pakistan, I recommend to the management
that there is a lack of understanding Pakistani marketplace and Broadway Pizza need to make a
complete research on newly market oriented country, which is emerged.
There are some basic pillars which have to be well study before making any decisions. These
components are listed below;
a) Social environment
b) Cultural factors
c) Economic conditions
d) Financial position
e) Legislations and policies
f) Competition
g) Government policies for the industry
After studying these factors Broadway Pizza can avoid on the job mistakes and can develop
efficient market share with utilizing minimum resources.
For future implementations, I would like to suggest Broadway Pizza to implement strategies
which are pointed out in this report, namely the organizational strategy, direct foreign investment
strategy, marketing strategy, financial strategy, human resource strategy, and operational
strategy. In which there is much more space for improvement in especially in organizational,
human resource management, and marketing strategy.
They should have to restructure their organization according to the international operations,
function, and product needs bases. As well as they have to develop their management skills. So
that they become able to tackle unusual situations arrived in foreign country.
The same thing will apply in marketing strategy, where they need to come-up with sound study
and research to avoid doing mistakes and error which give horrible impact on marketing
operations.

Appendix 1:

Q: So, with 80 stores, how many cities are you operating in right now?
Q: In essence, you were the pioneers – building the pizza market locally – but in recent years
there has been a recent growth in pizza outlets. How do you take on that competition and where
do you see yourself?
Q: I understand taxation is a huge matter, but what is your business strategy against the
competition?
Q: How are you looking at things in the context of expansion your business?
Q: Are you planning to take Broadway Pizza to more cities?
Q: Have you shut down any stores in last 5 years due to enhanced competition?
Q: What’s your sales mix? How much of it is delivery, dine-in and take away etc.?
Q: If I ask you to give me an analysis of the last five years of Broadway Pizza against the first
few years of your opening in Pakistan, how would you describe the progress and growth?
Q: What has been Broadway Pizza growth rate over the years?
 Appendix:2
Cause and effect diagram
 Growth Rate Of Broadway in Pakistan

Broadway show a very fast growth in Pakistan in compare to many

different companies in Pakistan in food chain but it was the first
company to launch pizza in Pakistan so that’s why it is growing and
opening many new stores in Pakistan.
References: (broadway pizza, 2013)https://www.Broadwaypizza.com.pk
(layout planning, 2017)https://en.m.wikipedia.org/wiki/BroadwayPizza
https://profit.pakistantoday.com.pk
https://www.linkedin.com/pulse/making-Broadway-pizza-pakistans-largest-food-brand-tony-
ozanne
https://www.google.com.pk/amp/s/tribune.com.pk/story/1586094/2-Broadway-pizza-pakistan-
enters-expansion-mode/%3famp=1