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Pizza Haven Delivery Service Research Study Karissa Hookstadt, Joshua Lupinek, Matthew Boudreau, Peter Panopoulos, Kristen Cilley, and Rachel Smith
Introduction • Pizza Haven is located in Rindge, NH and provides calzones, pizza, grinders, and beverages. • We are conducting research to determine if Pizza Haven should deliver to Franklin Pierce University.
Problem Statement • Research is necessary to determine if there is demand for a delivery service from Pizza Haven to Franklin Pierce University students.
Research Objectives • To determine Franklin Pierce University students spending habits at Pizza Haven. • To determine the level of awareness of Pizza Haven. • To determine what products students would want delivered. • To identify appropriate pricing strategies.
Methodology • Problem Identification • Having Pizza Haven deliver to campus could reduce the risk of alcohol related accidents late at night. • Some students do not have a means of transportation to get to off campus restaurants. • Development of Survey • Spoke with the owners of Pizza Haven to develop research objectives on September 17, 2008. • Reviewed with the owners on September 19, 2008 • Survey questions developed on October 10, 2008 • Finalized on November 5, 2008
Methodology (Cont.) • Definition of Population • The population is the Rindge campus of Franklin Pierce University. • The population is easily accessible due to size and location. • Sample Size • 160 students • 40 people of each class standing • 20 females from each class • 20 males from each class
Methodology (Cont.) • Data Collection Method • We used the non-probability convenience sampling method. • We also used a quota sampling method. • We handed out the questionnaires to students in the campus center, classrooms, dormitories, and sports teams. • They were handed out November 5-14, 2008.
Methodology (Cont.) • Assumptions • All students answered the survey correctly and honestly • Everyone answered all of the questions • Everyone was genuinely interested • Limitations • Lack of time • Small sample size
Literature Review • Introduction • Discussion of the importance of the college consumer and their needs/demand • Students as consumers • Students are known to “spend $4.8 billion a year on fast food” • College delivery service is all about meeting all the wants and needs of the students
Literature Review Cont. • Price Conscious Students • College students’ resources are often limited and purchasing food all the time can get costly especially with delivery fees. • It is important to make sure that the delivery fees are not too expensive and that the students are getting their correct food orders within a reasonable amount of time. • Convenience Demand • Delivery service allows students to arrange their time so that they can spend less time eating and more time fulfilling necessary tasks.
Literature Review Cont. • Food Expectations • College students today are always looking for a quality bite to eat and doing so in the cheapest way possible. • This means the typical college student determines what the vendors provide and for how much • Conclusion • Reviewing the literature reveals that a college student’s values are convenience, quality, and price when considering the choice of food.
Survey Questions • Have you ever made a purchase at Pizza Haven in Rindge, NH? • How often do you make a purchase at Pizza Haven? • What do you usually purchase at Pizza Haven? • How would you rate the serving size compared to price? • Based on the purchase categories from question three, estimate how much that you spend at Pizza Haven per visit? • How likely are you to utilize an on campus delivery service from Pizza Haven? • How much would you be willing to pay for a Pizza Haven deliver charge?
Survey Questions (Cont.) 8. What time of day would you most likely utilize an on campus Pizza Haven delivery service? 9. What day of the week would you most likely utilize an on campus Pizza Haven delivery service? 10. What class standing are you? 11. Where do you live as a Franklin Pierce student? 12. What age are you? 13. What gender are you? 14. Are you a member of a sports team on campus? 15. Are you a member of a club on campus? 16. Are you a member of an organization on campus?
Discussion According to our overall results a majority of FPU students surveyed (72%) would patronize a delivery service from Pizza Haven. Literature showed that college students would rather pay extra money for the convenience of having an item delivered. College students are a large source of the income for local restaurants. Delivery services from local restaurants to a college campus could help to increase profits to the companies and provide a better convenience to students Our research also coincides with literature that the older the college student, the more willing they are to patronize a delivery service. For FPU students this factor could be related to housing proximity to the cafeteria
Conclusions Research objectives 69.9% of students spend $6-15 on average at Pizza Haven 79.9% of students have made a purchase at Pizza Haven 49.5% of students responded they would purchase pizza, grinders, and beverages from the delivery service Pizza was the most popular food item as ½ of the students indicated they usually purchase pizza 71.2% of students responded that they would be willing to pay $1-3 for a delivery service
Recommendations Pizza Haven should offer a delivery service to Franklin Pierce University We recommend the service to be available between 6pm-3am Thursday thru Sunday 71.3% of students surveyed would patronize the service during these days and time Pizza Haven should focus their late-night delivery on pizza and grinders as these items account for 52.7% of items ordered from those surveyed Possible Increased Revenue 72% of students indicated they would utilize the delivery survey Possible additional revenue from 1,764 of 2,450 students with addition of delivery service
Questions ? Thank You
References Gardyn, R. (2002). Educated consumers. American Demographics, 24(10), 18-19. King, P. (2004). Convenience. Nation’s Restaurant News, 24. King, P. (2004). Made to order. Nation’s Restaurant News, 19. Klunkler, S. (2008). Mama Margie’s meets demand for pizza delivery on campus. The BG News, campus. Retrieved, Monday October 2, 2008 from, http:// media.www.bgnews.com/media/storage/paper883/news/2008/09/26/Campus/ Mama-Margies.Meets.Demand.For.Pizza.Delivery.On.Campus-3454543.shtml Leahy, K. (2006). The ten-minute manager’s guide to…delivery. Restaurants & Institutions, 116(15), 18-19. Lee, V. (2006). Student creates delivery service for late-night snacks. Daily Trojan, news. Retrieved, Monday October 2, 2008 from http://media.www.dailytrojan.com/media/ storage/paper679/news/2006/08/16/News/ Student.Creates.Delivery.Service.For.LateNight.Snacks-2220737.shtml Oakes, M., & Slotterback C. (2004). Nutritional habits and motivations to eat after a palatable pre-load. Current Psychology, 19(4), 329. Panopoulos, D. Personal Communication, 9/19/2008). Petrovitis, S, Personal Communication, 10/02/2008. Seckler, V. (2005, September 21). Why College Students Keep Spending More. WWD: Women's Wear Daily, 190(63), 10-10.