Introduction

PURPOSE OF REPORT

This report will analyze a multitude of processes and operations used throughout Piero’s Italian Restaurant. Because Piero’s is a small, private company, there will be a broader analysis of their process strategy and the components, as well as key competitive priorities. Our group will also examine the use of total quality management as it is essential in the restaurant industry. Additionally, the significance of implementing various lean systems strategy will be discussed. Recommendations will also be provided on how Piero’s can further improve their operations.

INDUSTRY AND COMPANY OVERVIEW

Competition between restaurants is intense, since there is a constant influx of dining options. According to the National Restaurant Association’s 2015 Restaurant Industry Forecast, the restaurant industry will attain more than $709 billion in sales, one million locations and 14 million employees (Restaurant.org). Virtually every restaurant must compete against different categories of establishments whether they are corporate chains or small, local restaurants. Competitors are compromised of everything from pizzerias to casual to fine-dining restaurants. And, of course, it is relatively easy to relinquish prepared foods, altogether, in favor of home cooking, which is usually the less expensive option. Thus, restaurant meals are discretionary purchases, and the industry tends to be vastly cyclical.

Piero’s Italian Restaurant has an emphasis on fine dining modern Italian cuisine. The establishment is considered to be a local landmark because it originated in Union Beach, New Jersey over 25 years ago. Upon its emergence, Piero’s was among the first restaurant in the area to embody fine dining etiquette accompanied with exceptional Italian food. The establishment has ample space for dining as well as banquet parties. Piero’s operates with seven front of house staff members (servers, bartender, busser) and seven back of house employees (chef, line cooks, dishwashers).

Michael Cacciuttolo is the owner and executive chef of Piero’s. Native to the area, Cacciuttolo wanted to open a restaurant that captured the family style Italian atmosphere while also incorporating a unique twist on Italian cuisine. Graduating from the Culinary Institute of America in 1997 and a veteran of several gourmet kitchens in New York City and Hoboken, Cacciuttolo has earned his stripes. Not only has Cacciuttolo experienced the back of house aspects but was also a financial planner on New York City for years. For the past eight years, Cacciuttolo was a part owner of a Jersey Shore popular restaurant, Tre Amici. After working alongside two others for years, Cacciuttolo realized it was time to branch out open his own establishment. In May of 2015, Cacciuttolo purchased the landmark restaurant, Piero’s Italian Restaurant.

In recent months, Piero’s has underwent significant renovations. Not only has Cacciuttolo significantly modernized the indoor furnishings but he has also developed dynamic new menus. Prior to Cacciuttolo’s arrival, Piero’s had a steady flow of regulars with a handful of newcomers. Since the new ownership, Piero’s has begun to attract a younger target market in order to reestablish its strength to the neighboring competitors and revitalize the establishment.