YRI Guidance on Pizza Hut Dough Commissary
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YRI Guidance on Pizza Hut Dough Commissary. August 1, 2012. YRI Commissary Classification System. Financial Model - Market Inputs. Need Accurate Data: Average Annual Store Sales. Pies per order ratio SSSG and Transaction Growth are averages for all stores

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August 1 2012

YRI Guidance on Pizza Hut Dough Commissary

August 1, 2012


August 1 2012

YRI Commissary Classification System


August 1 2012

Financial Model - Market Inputs

  • Need Accurate Data:

    • Average Annual Store Sales.

    • Pies per order ratio

    • SSSG and Transaction Growth are averages for all stores

    • # Stores is the final number after 10 years

  • PHD vs PBP mix

  • Size mix – important to determine dough weight.

  • Store Count Forecast

    • Based on a 10 year build

    • Start with Existing number of Stores

    • Contract Par Baked Pan


August 1 2012

Financial Model - CAPeX

  • Commissary CAPeX:

    • Design & Construction; Architectures

    • Building Equipment; i.e. HVAC, Proofing Room, & Refrigeration.

    • Dough Making Equipment; Mixer, Divider / Rounder, Sheeter, Oven, MD, etc.

    • Taxes; Duties will vary by country

  • Rent; Assumes facility is leased for 10 yr. Duration. The rate per m2 will be one of the site location criteria.

  • Store CAPeX avoidance for new builds only.

  • New Store rent and depreciation also predicated on smaller footprint which was assumed to be up to 20%.


August 1 2012

Financial Model – CF Summary


August 1 2012

Outputs estimate of space required

C2 – 20 Stores

Capacity Calculator – Space Requirements

2,830 Trays Required

189 Dollies Required

90 Dolly Positions in Cooler

Enter Estimated

Transactions & Product Mix

20 Stores

900 Transactions/wk/store

1.5 Pies Per Transaction

5 days Operating per Week

20% Family Pan

80% Medium Traditional

Engineered Solution

C2 – 1 Shift

Approx. 4,950 Sq. Ft.


August 1 2012

Outputs estimate of space required

C2 – 60 Stores

Capacity Calculator – Space Requirements

8,500 Trays Required

566 Dollies Required

270 Dolly Positions in Cooler

Enter Estimated

Transactions & Product Mix

60 Stores

900 Transactions/wk/store

1.5 Pies Per Transaction

5 days Operating per Week

20% Family Pan

80% Medium Traditional

Engineered Solution

C2 – 2 Shifts

Approx. 6,900 Sq. Ft.


August 1 2012

Outputs estimate of space required

C2 – 100 Stores

Capacity Calculator – Space Requirements

14,150 Trays Required

950 Dollies Required

450 Dolly Positions in Cooler

Enter Estimated

Transactions & Product Mix

100 Stores

900 Transactions/wk/store

1.5 Pies Per Transaction

5 days Operating per Week

20% Family Pan

80% Medium Traditional

Engineered Solution

C2 – 3 Shifts

Approx. 8,200 Sq. Ft.


August 1 2012

C2 Future Expansion: 20 Stores - 1 Shift

175 sq ft Ingredient Storage Usage

Processing

Estimated

7,820 sq ft of Total Space

Proofing & Retarding

435 sq ft

Cooler Usage

Packaging

Tray/Pan Washing

Par-Baking


August 1 2012

C2 Future Expansion: 60 Stores – 2 Shifts

336 sq ft Ingredient Storage Usage

Processing

Estimated

7,820 sq ft of Total Space

Proofing & Retarding

1,100 sq ft Cooler Usage

Packaging

Tray/Pan Washing

Par-Baking


August 1 2012

C2 Future Expansion: 100 Stores – 3 Shifts

500 sq ft Ingredient Storage Usage

Processing

Estimated

7,820 sq. ft of total space

Proofing & Retarding

1,700 sq. ft Cooler Capacity

Packaging

Tray/Pan Washing

Par-Baking


Appendix

Appendix

Appendix


August 1 2012

Pizza Hut Commissaries and PHD Stores

32 COMMISSARIES (21 -C1, 11-C2&C4) **

2012

500 STORES SUPPORTED

2011

27 COMMISSARIES

338 STORES SUPPORTED*

15 COMMISSARIES

2010

195 STORES SUPPORTED

6 COMMISSARIES

2009

163 STORES SUPPORTED

2008

# of Commissaries

3 COMMISSARIES

71 STORES SUPPORTED

# of PHD’s

2007

1 COMMISSARY

21 STORES SUPPORTED

450

50

100

250

300

150

200

350

400

* Data as of October 2011

** Includes 2012 forecast


August 1 2012

Commissary Roles and Responsibilities of Dallas vs Field

Dallas

BMU/FBU

Field all initial Franchise commissary requests

Resource to:

Define 10 year Growth Potential

Cascade & review Financial Model

Approve Site Selection

Approve Construction of facility conforming with latest manual

Start-up Support

Make each facility ready for CCA & STAR audit

Understanding Contractual Agreements

  • Define & Develop :

    • QA/Sanitation Policies (CCA)

    • Training Materials (Business Model)

    • Facility/Ops processes & systems

    • Commissary Contract

  • Approve:

    • Critical equipment specs

    • Layout & Workflows

  • Review Committee process for exceptions to recommended layout and business model.

  • Central Repository for all necessary information (Website)


Commissary 3 step process

Commissary 3-Step Process


August 1 2012

Financial Model – Store Level P&L


August 1 2012

Financial Model – Commissary Ingredient Costs

  • Dough Ingredient Expense based on 100kg batch:

    • Flour; will vary by market

    • Instant Dry Yeast available locally.

    • Oil per spec.

    • Lesaffre improver

  • Assumes 3 sizes for both PBP and PHD.

  • Store CAPeX avoidance for new builds only.

  • Smaller batches will have proportionate ingredient amounts associated.


August 1 2012

Financial Model – Commissary Wages

  • This sheet shows one of three 8hr shifts:

    • Can also be two 10hr shifts with 4hrs Cleaning & PM.

    • Assumes 9 team members. One of whom will be Shift Lead

    • Hourly wage will vary. Supervisor 1.5X team member

  • General Manager/QA Manager & Admin as full time employees.

  • This team member modeling based on 15% PBP. Please refer to Labor Table.


August 1 2012

Financial Model – Market Inputs

  • Fridge Truck:

    • $100,000 CAPeX

    • $10,000/yr Depreciation.

    • Labor expense of $10,000/yr could vary greatly.

    • R&M costs assumed to be outsourced but could be internalized with Maintenance Manager

    • Insurance $7,500 is just for internal investment.

  • Gas Expense assumes daily delivery 6 days per week at average of 500 miles per day driven.

  • Outsource Logistics of additional 50% contingency assumed for modelling.


August 1 2012

Key Cash Flow Drivers


Fresh commissary equipment

Fresh Commissary: Equipment


August 1 2012

Fresh Commissary: Assumptions


Fresh commissary capital estimates

Fresh Commissary: Capital Estimates


Fresh commissary capability comparison

Fresh Commissary: Capability Comparison


August 1 2012

Process Flow - Typical

Load Hopper

Verify Weight

Traditional

Warm Bowl

Add Ingredients

Place in Tray and

Spray with Oil

Mix

Divide & Round

Place in Pan and

Spray edges with Oil

Place on Cooling Tray

Proof & Retard

Par-Baked

Pan

Temper 30min

Bake 3 minutes

Package in Bags

Let Dough Rest

minimum of 3 minutes

Store & Ship

Add Perforated Pan

Sheeting


August 1 2012

Real Opportunities for Innovation

vs.

  • Water Metering – Automate temperature controlled water delivery to remove manual measurement with flow meter, load cells, etc.

  • Sheeting Throughput – Increase capacity of sheeters to reduce manpower, floor space, and bottlenecking.

  • Pan Oiling – Automate pan oiling with wiper or spray arm to remove manual pumping and pan rotation for coverage.

  • Pan Denesting/Stacking –Automate processes of staging pan, adding lid, stacking and racking pans for Proofing.

  • Proofing and Retarding – Spiral accumulation and singulation to/through Retarding. Consistent timing for continuous Proofing/Retarding process.

  • Right Size Oven - Maximize throughput to match continuous dough ball/pan speed. Eliminate Retarding time by oven outrunning production and going directly from Proofing to Oven.


August 1 2012

Process Flow

C1 – Option 1

C2 – Manual

C3 – Automatic

(See Appendix)

(See Appendix)

(See Appendix)

C1 – Option 2

C2 – Automatic

(See Appendix)

(See Appendix)


August 1 2012

C1 Equipment Optimization

5 Day

Store

Shelf Life

Traditional:

C1 – Option 1Sized for 5 Stores8 hours of production

20min Max

Cold Proof

48hrs

  • (1) Hobart HL662 Mixer

  • 10kg Batches

  • Pan Family Pies 37

  • Traditional 10” 64

  • 48 kg/hr

Par-Baked

Pan:

3-10min

Rest

Proof

1hr

Retard

1 to 2hrs

Tempering

30min

Store

1 Day

4 Day

Store

Shelf Life

  • (1) Doyon DFP18 Sheeter

  • 3-10 min Rest

  • Batch processed within 10 minutes

  • 8pcs/min per machine

  • 200 kg/hr

  • (1) Middleby Marshall

  • PS555 Oven

  • 2.5 to 3 minute bake time

  • Batch processed within 20 minutes

  • Pies per/hr per Oven:

    • Family 131

  • 55 kg/hr

  • Manual Dividing/Rounding

  • Batch must be Divided/Rounded

  • within 20 minutes

  • 6 pcs/min per employee

  • One employee

  • 90 to 150 kg/hr

Note: Equipment specification for example only.


August 1 2012

C1 Equipment Optimization

5 Day

Store

Shelf Life

Traditional:

C1 – Option 2Sized for 5 Stores5 hours of production

20min Max

Cold Proof

48hrs

  • (1) Thunderbird ASP-200 Mixer

  • 80kg Batches

  • Pan Family 188

  • Traditional 10”517

  • 380 kg/hr

Par-Baked

Pan:

3-10min

Rest

Proof

1hr

Retard

1 to 2hrs

Tempering

30min

Store

1 Day

4 Day

Store

Shelf Life

  • (1) AM S302 Divider/Rounder

  • Batch must be Divided/Rounded

  • within 20 minutes

  • 30pcs/min per machine capacity

  • 440 to 765 kg/hr

  • (2) Doyon DFP18 Sheeters

  • 3-10 min Rest

  • Batch processed within 30 minutes

  • 8pcs/min per machine

  • 408 kg/hr

  • (1) Middleby Marshall

  • PS555 Oven

  • 2.5 to 3 minute bake time

  • Batch processed within 60 minutes

  • Pies per/hr per Oven:

    • Family 131

  • 55 kg/hr

Note: Equipment specification for example only.


August 1 2012

C2 Equipment Optimization - Manual

5 Day

Store

Shelf Life

Traditional:

C2 Sized for Up to 100 StoresUp to 24-hour Production

20min Max

Cold Proof

48hrs

Par-Baked

Pan:

3-10min

Rest

Proof

1hr

Retard

1 to 2hrs

Tempering

30min

Store

1 Day

4 Day

Store

Shelf Life

  • (1) Thunderbird ASP-200 Mixer

  • 90kg Batches

  • Pan Family 335

  • Traditional 10”582

  • 142 to 427 kg/hr

  • (1) Automated Scale

  • Check weight of every dough ball

  • 30pcs/min per machine

  • 440 to 765 kg/hr

  • (1) AM S300 Divider/Rounder

  • Batch must be Divided/Rounded

  • within 20 minutes

  • 30pcs/min per machine capacity

  • 440 to 765 kg/hr

  • (2) Doyon DFP18 Sheeters

  • 3-10 min Rest

  • Batch processed within 30 minutes

  • 8pcs/min per machine

  • 408 kg/hr

  • (3) Middleby Marshall

  • PS555 Ovens

  • 2.5 to 3 minute bake time

  • Batch processed within 20 minutes

  • Pies per/hr per Oven:

    • Family 131

  • 167 kg/hr

Note: Equipment specification for example only.


August 1 2012

C2 Equipment Optimization - Automatic

5 Day

Store

Shelf Life

Traditional:

C2 Sized for Up to 100 StoresUp to 24-hour Production

20min Max

Cold Proof

48hrs

Metal

Detection

Par-Baked

Pan:

3min

Rest

Store

1 Day

4 Day

Store

Shelf Life

Tempering

30min

  • (1) Horizontal Mixer

  • 100kg Batches

  • Pan Family 372

  • Traditional 10”647

  • 475 kg/hr

Proof

1hr

  • (1) Automated Scale

  • Check weight of every dough ball

  • 33pcs/min per machine minimum

  • 440 to 765 kg/hr

Metal

Detection

  • (1) Divider/Rounder

  • Batch must be Divided/Rounded

  • within 20 minutes

  • 33pcs/min per machine minimum

  • 485 to 841 kg/hr

  • (2) Sheeters

  • 3min Rest (conveyor)

  • Continuous processing

  • 17pcs/min per machine minimum

  • 867 kg/hr

  • Continuous Proofer & Conveyor Oven

  • 2.5 to 3 minute bake time

  • Batch processed within 20 minutes

  • Pies per/hr: Family 1,116

  • 475 kg/hr

Note: Equipment specification for example only.


August 1 2012

C3 Equipment Optimization

5 Day

Store

Shelf Life

Traditional:

C3 Sized for 100+ Stores24-hour Production

20min Max

Cold Proof

24hrs

Metal Detection

Par-Baked

Pan:

3min

Rest

Tempering

30min

Store

1 Day

4 Day

Store

Shelf Life

Proof

1hr

Metal Detection

  • Continuous Proofer & Conveyor Oven

  • 2.5 to 3 minute bake time

  • Batch processed within 20 minutes

  • Pies per/hr: Family 5,592

  • 2,400 kg/hr

  • (2) Horizontal Mixers

  • 250 kg Batches

  • Pan Family 932

  • Traditional 10”1617

  • 2,400 kg/hr

  • (2) Divider/Rounders

  • Batch must be Divided/Rounded

  • within 20 minutes

  • 100 pcs/min per machine capacity

  • 2,940 to 5,100 kg/hr

  • (2) Automated Scales

  • Check weight of every dough ball

  • 100pcs/min per machine

  • 2,940 to 5,100 kg/hr

  • (2) Sheeters

  • 3min Rest (conveyor)

  • Continuous processing

  • 100pcs/min per machine minimum

  • 5,100 kg/hr

Note: Equipment specification for example only.


August 1 2012

Conceptual Commissary Layouts

C1 – Option 1

C2 – 20 Stores

C2 – Automatic

C3 – Automatic

(See Appendix)

(See Appendix)

(See Appendix)

(See Appendix)

C1 – Option 2

C2 – 60 Stores

(See Appendix)

(See Appendix)

C2 – 100 Stores

(See Appendix)


August 1 2012

C1 Layout – Option 1

Utilize Store Oven during Off Hours

Additional

515 sq. ft. built out from typical store

C1 – Option 1

(1) Hobart 60Qt Mixer

Manual Dividing/Rounding

(1) Sheeter

(1) Oven (Store Oven, Off Hours)

(4) Estimated Employees

Additional

116 sq. ft. of Cooler Space


August 1 2012

C1 Layout – Option 2

Utilize Store Oven during Off Hours

Additional

830 sq. ft built out from typical store

C1 – Option 2

(1) Thunderbird 200kg Mixer

(1) AM Divider/Rounder

(2) Sheeters

(1) Oven (Store Oven, Off Hours)

(3) Estimated Employees

Additional

142 sq. ft of Cooler Space (Storage & Retarding)


August 1 2012

C2 Layout

C2 – 20 Stores

(1) Thunderbird 200kg Mixer

(1) AM Divider/Rounder

(2) Sheeters

(3) Ovens

(11) Estimated Employees

Estimated

4,875 sq. ft. of Total Space

Processing

Proofing & Retarding

435 sq. ft. Cooler Capacity

Packaging

Par-Baking

Tray/Pan Washing


August 1 2012

C2 Layout

C2 – 60 Stores

(1) Thunderbird 200kg Mixer

(1) AM Divider/Rounder

(2) Sheeters

(3) Ovens

(26) Estimated Employees

Processing

Estimated

6,665 sq. ft of total space

Proofing & Retarding

1,100 sq. ft Cooler Capacity

Packaging

Tray/Pan Washing

Par-Baking


August 1 2012

C2 Layout

C2 – 100 Stores

(1) Thunderbird 200kg Mixer

(1) AM Divider/Rounder

(2) Sheeters

(3) Ovens

(39) Estimated Employees

Processing

Estimated

7,820 sq. ft of total space

Proofing & Retarding

1,700 sq. ft Cooler Capacity

Packaging

Tray/Pan Washing

Par-Baking


August 1 2012

C2 Automatic Layout

C2 – 100 Stores

(1) 200kg Horizontal Mixer

(1) Divider/Rounder

(2) Sheeters

(1) Continuous Proofer/Oven

(6) Estimated Employees

Bulk Ingredients

Estimated

16,500 sq. ft of total space

Processing

Tray Packing & Metal Detection

1,700 sq. ft Cooler Capacity

Proofing

Tray/Pan Washing

Par-Baking

Packaging & Metal Detection


August 1 2012

C3 Layout

Proofing

Par-Baking

Sheeting

Cooling

Processing

Packaging

Bulk Ingredients

5,615 sq. ft Cooler Capacity

Tray/Pan Washing

Estimated

56,700 sq. ft of total space

C3 – 100+ Stores

(2) Horizontal Mixers

(2) Divider/Rounders

(2) Sheeters

(1) Continuous Proofer/Oven

(12) Estimated Employees


August 1 2012

C1 Production Time Study

C1 – Option 1

(1) Hobart 60Qt Mixer

Manual Dividing/Rounding

(1) Sheeter

(1) Oven(Store Oven, Off Hours)

Traditional

1 Shift

Up to 5 Stores

22 Batches/Day

4 Employees

Par-Bake

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs

C1 – Option 2

(1) Thunderbird 200kg Mixer

(1) AM Divider/Rounder

(2) Sheeters

(1) Oven (Store Oven, Off Hours)

Traditional

1 Shift

Up to 5 Stores

3 Batches/Day

3 Employees

Par-Bake

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs


August 1 2012

C2 Manual Production Time Study

1 Shift

Up to 20 Stores

10 Batches/Day

11 Employees

C2 – Option 1

(1) Thunderbird 200kg Mixer

(1) AM Divider/Rounder

(1) Automated Scale

(2) Sheeters

(3) Ovens

2 Shifts

Up to 60 Stores

28 Batches/Day

26 Employees

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs

3 Shifts

Up to 100 Stores

46 Batches/Day

39 Employees

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs

11hrs

12hrs

13hrs

14hrs

15hrs

Traditional

Par-Bake

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs

11hrs

12hrs

13hrs

14hrs

15hrs

16hrs

17hrs

18hrs

19hrs

20hrs

21hrs

22hrs

23hrs

24hrs


August 1 2012

C2 Manual Production Labor Optimization

Traditional

Par-Bake

2 Shifts

Up to 100 Stores

42 Batches/Day

30 Employees

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs

11hrs

12hrs

13hrs

14hrs

15hrs

C2 – Optimization

(1) Thunderbird 200kg Mixer

(1) Divider/Rounder

(1) Automated Scales

(2) Sheeters

(9) Ovens

Optimize Oven Size


August 1 2012

C2 Automatic Production Time Study

2 Shifts

Up to 100 Stores

42 Batches/Day

6 Employees

Traditional

Par-Bake

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs

11hrs

12hrs

13hrs

14hrs

15hrs

16hrs

C2 – Automatic

(1) 200kg Horizontal Mixer

(1) Divider/Rounder

(2) Automated Scales

(2) Sheeters

(1) Continuous Proofer/Oven

(1) Spiral Cooler

(1) Automated Bagger/Tray Packer

(1) Automated Dough Ball Tray Packer


August 1 2012

C3 Production Time Study

1 Shift

285 Stores

47 Batches/Day

12 Employees

Traditional

Par-Bake

1hr

2hrs

3hrs

4hrs

5hrs

6hrs

7hrs

8hrs

9hrs

10hrs

11hrs

12hrs

C3 – 100+ Stores

(2) Horizontal 400kg Mixers

(2) Divider/Rounders

(2) Automated Scales/Metal Detectors

(2) Sheeters

(1) Continuous Proofer/Oven

(1) Spiral Cooler

(1) Automated Bagger/Tray Packer

(1) Automated Dough Ball Tray Packer


August 1 2012

Commissary Cost Comparison


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