MGMT325:ServiceOperationsAnalysis

IsabellaAlveal,ChristinaBohn,ElizabethGee,&AyannaRocker

BACKGROUND
Foundedin1983,BrueggersBagelshaspaveditswayintobeingatopcompetitorinthe
bakery/cafeindustry.Thetwoownersatthetime,NordahlBrueandMikeDressell,openedtheir
firstBrueggersinTroy,NewYorkandhassincethenprideditselfonservingauthenticNew
Yorkstylebagels.WhatstartedoutasonesmallbakeryinNewYorkhasexpandedintoan
astounding280bakeriesscatteredacross26U.S.states,theDistrictofColumbia,andCanada.
BrueggersismostnotablyfamousfortheirvarietyoffreshlybakedbagelsandoriginalVermont
creamcheesehowever,theyalsoservecoffee,specialtysandwiches,soups,salads,dessertsand
muchmore.Brueggersvaluestheauthenticityoftheirbagelssomuchsothatmanyofthe
bakeriestakepleasureinprovidingaviewingareawherecustomerscanopenlyseehowtheir
bagelsarefreshlymade.BrueggersBagelissteadilyincreasing,andunsurprisinglyflourishing
acrossthenationwhichispartlyduetothewaytheydesignedtheiroperationsprocess
throughoutthebakeries(AboutUs).

OBSERVATIONS:
March2,2016|9am10am
WearrivedatBrueggersBagelslocatedonLongwoodAveat9am,justintimetomiss
themorningrushofcustomersbeforetheyheadedofftowork.Just15minutespriortoour
arrival,wewereinformedthatthelineofcustomerswasoutthedoor,andemployeeswere
workingdiligentlytocompleteallordersbeforecustomersneededtobeatwork.Bythetimeour
grouparrived,tableswereslightlymessy,andcustomerswereslowlyclearingoutofthesmall
eatingarea.ABrueggersemployeecamearoundandstartedwipingdowndirtytablestomake
therestaurantmorepresentableforincomingcustomers.Ourgroupquicklyfoundacleantable
andbegantomakefurtherobservations.Thesameemployeethathadfinishedcleaningthetables
movedtothecoffeestationandcleanedthatareaupaswell.Inaddition,theemployeerefilled
thecoffee,milk,sugar,andanyothercoffeecomplimentsthatwereavailabletocustomers.We
lookedaroundthebakeryandnoticedafewstudentsontheirlaptopssippingcoffeeasifthey
plannedtostaythereforawhile.Duringthatparticulartimeofday,somecustomersstayat
Brueggerstogetworkdoneduetothecomplimentarywifiprovidedbythecompany.
Eachofthemembersinourgroupindividuallystoodinlineandorderedsomethingoffof
themenupayingcloseattentiontotheoperationprocess.Wethenaskedvariousquestions
including,
Howmanycaloriesareinthisbagel?
and
Imnotsurewhatcreamcheesetoget,
whatdoyourecommend?
Havingtheopportunitytointeractwiththeemployeesandask
questionsenabledustomeasuretheirresponsivenessandcustomerserviceinadirectmanner
(Exhibit1).Tooursurprise,Brueggersprovedtohaveoutstandingqualitytheyimmediately
provideduswithabookletthathadallthenutrientfactsofeveryproductintheirstoreand
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broughtustothepagethathadinformationonthespecificbagelweordered.Toaddqualityto
theirstoreevenmore,anemployeegaveusseveralrecommendationsonwhichbagelsshe
thoughtwasbest,andwhichcreamcheesestastethebestwithcertainbagels.Justthoseshort
conversationsprovideduswithknowledgewewouldusetofurtheranalyzethecompany.
Aswesatandenjoyedourbreakfast,wepaidcloseattentiontowhatothercustomers
werepurchasing.Almosteverycustomerwhowalkedinorderedabagel,andmostofthem
purchasedasmallcoffeeaswell.Onlyahandfulofcustomersorderedasandwich,salad,or
somethingelseoffthemenu(Exhibit2).Fromthoseobservations,itwasclearthatbagelswere
thetopselleratBrueggers,sowhendiscussingtheiroperationsprocess,itwouldbemore
beneficialtofocusonthataspectoftheirbusiness.

March15,2016|7:00am8:00am
AfterhavingvisitedBrueggersBagelsforthefirsttime,wequicklyrealizeditwouldbe
essentialtoreturntothebakeryduringapeakhourtoconductfurtheranalysisoftheiroperation.
Thesecondobservationwasconductedbetween7amand8aminanticipationofthebreakfast
rushfromofficeandhospitalworkersintheLongwoodMedicalarea.At7am,Brueggershad
fewcustomersandtherestaurantwasgenerallyquiet.Thetableswerecleanandthecoffee
stationwasfullystocked,readyforthemorningrush.Thefewordersexperiencedduringthe
hourweretakenquicklyandwithefficiencybytheworkersasseeninExhibit3.Anemployee
cameoutfrombehindthecounterevery1015minutestowipedowntablesandcheckthecoffee
station,whichremainedfullforthemajorityofthehour.Itwasonlytowards8amthatthere
begantobeasteadycustomerstreamof34peopleatatimeversustherestofthehourthathad
beensinglecustomerseveryfewminutes.
Ascustomersbegantorushintothebakery,employeesrealizedtheircustomer
demographicswereswitching,andwerenolongerlaidbackindividuals.Employeesneededto
pickuptheirpace,aswellasgetadditionalhelp,toensureallcustomersreceivedtheirordersin
atimelymannerwiththebestquality,rightbeforetheyneededtobeatwork.Theemployeethat
periodicallycameouttocleanthecoffeestationinsteadassistedotheremployeesbeingthe
counterandpreparedtheordersastheyendlesslycamein.Webegantorecordthetimeittook
foreachtasktogetcompletedduringthepeaktimesowecouldanalyzeBrueggersoperation
andprocessevenfurther.
Althoughwegatheredsufficientdatafromthetwoobservationtimespreviously
mentioned,wefeltitwouldbebeneficialtovisitBrueggersatothervarioustimesthroughout
thedaytofurtheranalyzetheiroperationsprocess.Weexaminedtheirprocessbetween
11:45am12:45whichwasapeaklunchtime,aswellasfrom3pm4pmascustomerswere
preparingtothetheLongwoodMedicalAreaafterwork.Thedatawecollectedisillustratedin
Exhibits4&5.

OPERATIONANALYSIS
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Mission
ThemissionatBrueggersBagelsistoserveauthenticNewYorkstylebagelsacross
America,kettleboiledthenbakedinastonehearthoven(AboutUs).AlthoughtheNewYork
authenticnesscouldnotbedeterminedbyobservingtheirprocess,theirboilingandbakingcould
beseenthroughaglasswallintoaboilingroom.Itwastherethatcustomerscouldseea
Brueggersemployeeboilingbatchesofbagelsandthentransferringthemtocoolingracks
beforebeingbroughtbacktothekitchentobebaked(Exhibit1).InthispartofBrueggers
process,theygaincustomerassurancethattheirbagelswillbecookedinexactaccordancewith
theirmission.AnotherpledgeontheircompanypageistouserealVermontcreamcheeseto
maketheirhouseblendthattheyuseandsellintherestaurant(AboutUs).Aspartofthequeuing
linearea,customersstandinfrontofarefrigeratedboxthatholdsvariousdrinksandcondiments
topurchaseinpairingwiththeirbagel.ThemajorityofthecondimentsareBrueggershouse
creamcheesevarieties,whichallarelabeledtobemadewithrealVermontcreamcheese.
Athirdpartoftheirmissionistohaveabagelforeverycustomer,meaninganample
varietyandselectionsothatanypersonwhowalksintoaBrueggersBagelswillbeabletofinda
bageltotheirliking.Brueggersachievesthisbyhavingasectionofbagelbasketsbehindthe
employeeswhencustomersapproachtheorderingareathatshowwhattypesofbagelsare
availableandfresheachday.Theyhaveover20differenttypesofbagelsandseasonalflavors,
whichallowsforampleselectionsocustomerscanfindabageltosuittheirpreference.

Processes
BrueggersBagelshasseveralsimultaneouslyworkingcomponentsthathelpensurethat
thestoreoperatesinanefficientandtimelymannertohaveoptimalcustomersatisfaction.Upon
enteringBrueggers,therearethreemainaspectsofthestore.Firstisthecounter,wheremostof
theprocessessuchastakinganorder,preparingtheorder,andpayingfortheorderhappen.
Secondisthediningarea,wherecustomerscansitataboothortable.Lastlyisthebackroom,
whereemployeesbakebagelsfreshdaily.Theprocessbeginswhenacustomerlinesupatthe
rightsideofthelongcounterandwaitsfortheirturntobeassistedbyanemployee.Once
reachingthefrontoftheline,acustomersorderistakenbyanemployee.Theemployeeselects
thedesiredvarietyofthefreshlybakedbagelsfromabasketagainstthebackwall.Thissame
employeethenplacesthebagelinatoasterforapproximately2minutes(Exhibit6).Whenthe
bagelfinishestoasting,thesameemployeetakesitoutofthetoasterandresumeshelpingthe
customer.Theemployeequicklypreparesthebagelbyselectingtheingredientslocatedbehind
thecounter,wrapstheorderinfoil,placestheorderinapaperbag,andhandstheordertothe
customer.Theprocessthenendsbyacashierwhoconfirmsthecustomersorder,ringsupthe
totalfortheorder,andreceivespaymentfromthecustomer.Thisprocessrepeatsitselfwith
everynewcustomer.
Processesoftheoperationvisiblebythecustomermayvarydependingonwhetheritis
peaktimeornot.BrueggersBagelshastwokeypeaktimesduringtheiroperatinghours.The
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firstpeaktimeis7am9am,whichisgenerallywhencustomersarebuyingbreakfastpriorto
headingtowork.Thesecondpeaktimeis11am2pm,whichisgenerallywhencustomersare
buyinglunch(Exhibits3&4).Duringthesepeaktimes,Brueggersadjustsitsserviceoperations
tomeettheincreaseofinflowofcustomers.Itwasobservedthattheamountofemployees
bakingbagelsinthebackarereduced,duringthesepeaks,andrelocatedtoworkbehindthe
countertoassisttheteamintakingandpreparingordersforcustomers(Exhibit4).
Thequalityofservicereceivedfromemployeesslightlyvariesdependingifisapeak
timeornormaltime.Serviceisprioritizedonassistingcustomersinafastpacedandefficient
mannerduringpeaktimes.Atnormalandslowertimesoftheday,employeesprioritizeservicing
customersinahelpfulandusefulmanner.Overall,thequalityofgoodswereconsistentduring
bothpeakandnormaltimes.
Brueggersmosteffectiveaspectoftheprocessisincreasingtheamountofemployees
duringpeaktimes.Thisaspectensuresthatordersandcustomersarequicklysatisfied.Themost
efficientaspectsoftheentireprocessarewhenordersaretakenandwhencustomersare
checkingout.However,notallaspectsoftheprocessareaseffectiveandefficientastheycould
be.Theprocessdeceleratesbetweentoastingthebagelandpreparingthebagelasthesearethe
lengthieststepsinthecycle.Improvingthesetwoprocesseswouldhavethegreatestoverall
impactonoperationsprocessatBrueggersBagels.

OperationsStrategy
ThestrategyofBruegger'sBagelsistoprovidetheircustomerswithanefficientwayof
grabbingfreshlymadecustomizedfoodquickly.Theassemblylineprocessoperationalizesthis
strategy,sincecustomersareabletodirectlycommunicatewiththeemployeesandhavethefood
maderightinfrontofthem.Beingabletohavethatfacetofaceinteractionwhenthefoodis
beingmadecutsdownonorderingtimeandmistakes.Italsoallowsforcustomerstoeasily
customizewhattheywant,byhavingallthechoicesinfrontofthemandbeingabletotelltheir
serverexactlywhattheywouldlike.Additionally,beingabletoseewhatisavailablecutsdown
onthetimeofreadingamenuandfindingoutwhatbagelsthestorehasinstock.
Inordertomakeitafastprocesswhilealsostayingfresh,theonlyproductsthataremade
beforehandarethebagels.Bybeingmadeinhouse,Brueggersensurestheirbagelsarealways
freshandalwaysavailablewhenevercertainvarietiesrunout.Althougheachtypeofbagelisthe
samefromanyother,customerscantransformaplainbagelintoacustomizedorderwith
whatevertoppingtheychoose.

CompetitivePriorities
BrueggersBagelsreliesonitscompetitiveedgetohelpdistinguishitselffrom
competitorsbothnationallyandintheLongwoodMedicalarea.Thefranchiseisbestknownfor
itsauthenticNewYorkstylebagelsthatarebakedinstoredaily.Thisisunlikesomeofits
competitorswhoreceivetheirbreakfastfoodsfromanoutsidesourceanddonotproducethe
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foodonsite.Inaddition,Brueggersalsohasanextensivevarietyofcreamcheesesthataremade
locallyinVermont.Thecreamcheesesaresoldatalloftheirlocationsandareofferedin17
differentvarietiesincludingbaconscallionandhoneywalnut.Thefranchisesfreshlybaked
bagelsandlocalcreamcheeseshelptheirimageinportrayingthemasoriginalandofbetter
qualitythantheircompetitors.
IneveryBrueggersrestaurant,customerscanwatchthebagelsaretheybeingmade
throughaglasswall.Likewise,thereisalsoaglassbarrierthatseparatestheingredientcounter
andthecustomers.Byimplementingtheseglasswallsandbarriersinalloftheirstores,
Brueggersallowscustomerstowitnessamajorpartoftheirfoodproductionprocessfrom
beginningtoend.Thissetsastandardoftrust,integrity,andauthenticitybetweeneachcustomer
andstore.
Thecombinationoftheoriginality,integrity,andtransparencyofBrueggersBagelshelp
distinguishthechainasafastcasualrestaurant.Whereas,theirdirectcompetitorsaremostlyfast
foodbreakfastfranchises.Asafastcasualrestaurant,Brueggersdistancesitselffromtheimage
thatfastfoodrestaurantshavesuchasofferingoverlyprocessedfoodsandunhealthyoptions.
Theydistinguishthemselvesasbeingthealternativeyoucantrustwithbetterqualityfood.

Customers
Brueggershasbeenespeciallysuccessfulbecausetheycaterspecificallytoa
welldefinedtargetaudience.KnowingthattargetmarkethelpsBruegger'sdeterminehowto
reachouttotheircustomersandwhattoofferthem.LookingatExhibit2themajorityofthe
customersareadults.SincetheLongwoodMedicalareaisfilledwithmultiplehospitals,the
adultsthatgotothisspecificlocationaretypicallythosethatworkinthemedicalprofession.
Knowingthattheseadultsareinarushtowork,Brueggerscaterstothembyaddingextrastaff
onthefloorduringpeakhourstodecreasethewaittimefortheircustomers(Exhibits3&5).
Theyalsomakeitefficientfortheircustomersbyhavingtheirservermaketheirorderinfrontof
them,whichcutsbackonmistakesandcommunication.Unliketheothercoffeeshopscloseby,
Brueggersfocusesmoreonprovidingefficient,fast,yetauthenticfoodforthosewhoneed
somethingeasytograbwhiletheyareinarush.
Furthermore,thelayoutoftherestaurantalsotargetstheirmarketothermarket:young
peopleandcollegestudents.Thewaitingareaismuchmorespaciouscomparedtotheseating
area,becauseBruegger'sknowsthatthemajorityoftheircustomersareonthego.However,
unlikesomebagelshopswithnoseatingatall,theyalsocatertothosewhodoliketositdown
andenjoytheirmeal.Notonlyarethereanabundanceofhospitalsinthearea,butalsoan
abundanceofcolleges.Thiscaterstocollegestudentswhoarelookingtograbamealataplace
wheretheycanalsostudyduetothecomplementarywifi.Brueggersalsoconsiderthevisitors
ofhospitalswhomaynotbeinarush,tourists,orlocalworkerswhojustneedaplacetorelax
duringabreak.
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Brueggersofferslowpricestotheircustomersaswellasconvenience.Inthepast,the
companyhadaloyaltyprogram,whichincludedgettingafreebagelforeveryninebagelsa
customerbought.SeveralyearsagoBrueggerseliminatedthisprogramfromtheirfranchise,but
stillofferscustomersexclusivedealsifcustomersoptinontheirmailinglist.Althoughthe
programcouldbeattractivetocustomersifbroughtback,itwasobservedthatregularcustomers
aretreatedwellatBrueggersandkeepcomingbackeveniftheydonotreceivediscounts.

RECOMMENDATIONS
IntermsofimprovingBrueggersprocessperformance,therearefewrecommendations.
Itwasdeterminedthroughobservationthatprocessperformanceisefficientandeffective,and
thereforethereislittletobesaidinwaysofimprovement.However,itwasnotedthatwithinthe
taskcyclesofordering,making,andpayingforaorder,thelengthiesttimeoccurredduringthe
ToastingtheBagelstep(Exhibits36).Althoughtherewerenocustomercomplainsaboutthis
time,itisanareaforimprovementwithinthecycleitself.Onewaythesetimescouldbe
decreasedisifBrueggersinvestedinhigherqualitytoastersthattoastedthebagelsfasterthan
theircurrentones.Thischangeisnotanessentialimprovement,butcouldbeimplemented
shouldthefranchiseorcustomersfeelitwouldaddtotheproductqualityandcustomer
satisfaction.
Onesuggestionthegroupthoughttherestaurantcouldimplement,however,wasonthe
topicofrestaurantcleanliness.UponvisitingBrueggersinthehourfollowingtheirbreakfast
peaktimeof79am,itwasobservedthatthetablesandgeneralseatingareaswereverydirtyand
disorganized.Althoughanemployeedidcomeouttocleanthetablesshortlyafter9am,they
performedasweepcleanwheretableswereinsteadofwipedcleaninsteadofsanitizedandthe
floorsweresweptquicklyratherthanthoroughly.ItisrecommendedthatBrueggers,inthetime
directlyaftertheirpeaktimes(9amand2pm),performamorethoroughcleaningofthe
restauranttoaccountforthedisarrayleftbehindfromtherushofcustomers.Aconstantcleaning
oftheeatingareaduringpeaktimeswouldbeanunreasonablerequest,aseveryemployeewhois
presentwouldbeneededbehindthecountertoservethecustomerrush.Thisiswhyapostrush
intensivecleaningisproposedinsteadtoaccountfortheabnormaldisarrayafterthesetime
periods.
AnotherpropositionforBrueggersisthattheyrevivetheircustomerloyaltyprogram.
AlthoughBrueggerscustomersincludepeoplewhoaretemporarilyvisitingthearea(suchas
hospitalpatientfamiliesortourists),theyserveevenmorelocalcustomerswhovisitthe
restaurantregularly.Arewardsprogramisinplaceatoneoftheircompetitors,CaffNero,and
althoughtheyarenewtotheLongwoodMedicalarea,theprogramcouldbeapointofdifference
thattakescustomersawayfromBrueggers.ItisrecommendedthatBrueggersputinplacea
loyaltyprogramthatallowscustomerstoreceiveonefreebagelorcoffeeaftereveryninebagels
orcoffeespurchased.
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Beyondtheaboverecommendations,itwasfoundthatBrueggersqualityofproducts,
service,andoperationswasexcellentandthattheyaremeetingtheirdemandseffectivelyasthey
becomepresent.BrueggersBagelsisawellrunoperationthatneedslittleimprovement.

APPENDIX

Exhibit1
:CompanyQualityAssessment
Reliability
broughtoutmorestafftoperformtoasting/bagelprepoperationsduringpeaktimebefore9am(3:1
cookingtoregister)
oneserverpercustomer,itisdependableandaccuratebecauseyouareabletowatchyourserverprepare
thefoodandyoucancommunicatedirectlywhiletheyarepreparing
910amwaittimeapprox.4minperbagelsandwich
78amwaittimeapprox..2minperbagelsandwich

Responsiveness
whenaskedaboutthedifferenttypesofcreamcheeses,theemployeeletussampledifferentones
washelpfulinbringingoutanutritionbooklet
constantlyaskingeachpersoninlineiftheyhavebeenhelpedwith
interactedwithcustomersassoonastheywalkedthroughthedoor(i.e.greetings,guidingthemtowaitin
line)

Assurance
allbagelsaremadeinfrontofustobuildtrust(sidebagelboilingstationbehindglass)
whenaskedhowmanycaloriesthebagelshad,anemployeedidnotknowoffthetopofherhead,butshe
quicklygrabbedabookthathadallofthenutrientfactsoftheproducts
veryknowledgeableaboutthedifferenttypesofbagelsandgoodrecommendationsalongwithwhatis
mostpopular(showsthattheyrememberwhatotherpeoplearegetting)

Empathy
whenaskedwhatcreamcheesewasthebest,anemployeeprovidedinsightonwhichonetheypreferred,
inadditiontoallowingustastedifferentcreamcheeseflavors

Tangibles
sometablesdirtyatendofpeakmorninghour,butnotabsurdlyso(cleanotherwise)
910am:someonewasconstantlyfillingthecoffeestationandmakingsureitwasclean
78am:employeecametorefillcoffeestationevery1015minandwipeddowntablesevery2030min
theemployeeswerewearingglovesandcapstokeephairawayfromfood

Exhibit2:AdditionalObservationData

Exhibit3:03/15Data(7am8am)

Task
Takingan
Order
Toastingthe
Bagel
Assemblewith
Ingredients

TaskTime

0.13min
2min
0.5min

workers Output CycleTime

0.25min
0.25min

Packaging
Order

0.25min

CheckingOut

0.25min

Daily
Capacity

Hourly
Capacity
Capacity Utilization

5077

462

4.3%

330

30

66.7%

1320

120

16.7%

2640

240

8.3%

2640

240

8.3%

0.13min
2min
0.5min

BottleneckStep=
ToastingtheBagel
SystemCycleTime

=
2minutes
SystemCapacityUtilization
=66.7%
ThroughputTime=sumofTaskTimes=
3.13minutes
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Exhibit4:03/28Data(11:45am12:45pm)

Task
Takingan
Order
Toastingthe
Bagel
Assemblewith
Ingredients

TaskTime

0.16min
3min
1.75min

workers Output CycleTime

0.25min
0.42min

Packaging
Order

0.25min

CheckingOut

0.42min

Daily
Capacity

Hourly
Capacity
Capacity Utilization

4125

375

5.3%

220

20

100%

377

34

58.4%

2640

240

8.3%

1571

143

14.0%

0.16min
3min
1.75min

BottleneckStep=
ToastingtheBagel
SystemCycleTime

=
3minutes
SystemCapacityUtilization
=100%
ThroughputTime=sumofTaskTimes=
5.58minutes

Exhibit5:03/30Data(3pm4pm)

Task
Takingan
Order
Toastingthe
Bagel
Assemblewith
Ingredients

TaskTime

0.15min
1.5min
0.75min

workers Output CycleTime

0.25min
0.22min

Packaging
Order

0.25min

CheckingOut

0.22min

Daily
Capacity

Hourly
Capacity
Capacity Utilization

4400

400

5.0%

440

40

50.0%

880

80

25.0%

2640

240

8.3%

3000

273

7.3%

0.15min
1.5min
0.75min

BottleneckStep=
ToastingtheBagel
SystemCycleTime

=
1.5minutes
SystemCapacityUtilization
=50.0%
ThroughputTime=sumofTaskTimes=
2.87minutes
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Exhibit6:03/02Data(9am10am)

Task

TaskTime

Takingan
Order

0.16min

Toastingthe
Bagel

2min

Assemble
with
Ingredients

Workers Output

CycleTime

Packaging
Order

0.25min

CheckingOut

0.33min

Hourly Capacity
Capacity Utilizatio
n

4125

375

5.3%

330

30

66.7%

528

48

41.7%

2640

240

8.3%

2000

182

11.0%

0.16min
2min

1
1.25min

Daily
Capacity

1.25min

0.25min

0.33min

BottleneckStep=
ToastingtheBagel
SystemCycleTime

=
2minutes
SystemCapacityUtilization
=66.7%
ThroughputTime=sumofTaskTimes=
3.99minutes

Exhibit7:ProcessFlowDiagram

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WORKSCITED
"AboutUsBruegger'sBagels."
Bruegger'sBagels
.N.p.,01Jan.2010.Web.12Apr.
2016.<https://www.brueggers.com/aboutus/>.

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