Blending Food and Merchandise Departments
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1 Blending Food and Merchandise Departments Bret Pfost General Manager Glenwood Caverns Amusement Park Iron Mtn. Hot Springs Tracy Bareno Director of Retail Operations San Diego Zoo Safari Park November 15, 2015
2 Revenue Model 2011 Pre Retail FOOD SERVICE 5 Restaurants 8 stands 5 carts Commissary Catering Camping Vending Receiving WHSE Food Ser WHSE MERCHANDISING Corporate Merchandising 5 Stores 6 vendors Shop Zoo Temporary Carts Merge 26% 13% 61% Food Merch Vendors
3 Why the decision to merge Food and Merchandise Operations? Performance improvement recommendation Economic Recession Efficiencies/Cost Savings/Cost Controls Labor- downsize, deliveries Training- cross train Purchasing- buying power, POS Inventory Control Succession Planning Standardization/Consistency- Policies, Procedures-scheduling Best Practices- on call
4 The Merge Completed Merge of Food and Merchandise Operations to Retail Operations January 1, Initial steps took 2.5 months. Goals of the Merge included: > Identification and Implementation of Cost Saving Efficiencies. > Standardization of Policies and Procedures > Performance Improvement in Guest Service and Cost Controls >Application of Merchandise Sale Model as applicable > Application of Food Service labor Business Model where applicable > Focused creativity and energy around new revenue opportunities.
5 The Process of Change Meetings, Meetings and more Meetings Strategic Planning Training and Cross Training Employee and Society Communication Evaluation of Policies and Procedures, decisions on best practices Assignment and Alignment of Staff Responsibilities Collaboration
6 The First Steps of Change Drinks and Mini Melts in Stores. Tables and Chairs in areas that used to be stores-climate Controlled Areas
7 Merchandise in restaurants, impulse and convenience items. Coffee Bar at outside store Practical Adds- Bathing Suits, towels in water area.
8 Combination Stores
9 Corporate Collaboration Sourcing Items- Buying team, Projects, Incentives Transportation of products Special Projects-Tiger and Mombasa. Storing Large Items Store Displays Inventory management Analytical Information
10 Strategically Planning Merged Locations Tiger Trail- Indonesian Longhouse
11 Corporate Collaboration Oasis Deli- formally a Gift Store
12 Challenges Standardizing procedures- on call, closing times Record keeping, inventory systems Getting to know the employees-teaching a different work style, volume expectation Food Service Mgmt-Understanding Merchandise cost controls, pricing, and display, training the design eye Buying control vs Operational need Teaching Merch Staff Food Service and vice versa Managing Vendors Expense responsibility w/out control Store/Employee attention
13 Success Labor efficiencies- fewer deliveries, open schedules, cross training, combination stores Positive for Employees- More available hours for employees, succession planning, job knowledge, variety of work Guest Service improvement through consistency, attention to guest vs the product, spending time vs speed, finding balance, connection to our mission. Improved look of Food Service Facilities, increased theming On-line purchases Assistance with large projects. More accountability for the buying team Significant increase to the bottom line
14 Future Plans What s Next? Remodel of existing store What s different based on what we have learned. Increased square footage Exit the Park through the store. Added Bakery and Coffee center stage Impulse items Engage guests, make it an experience: >Interactive media- Tell our stories. >Activities for guests- Photo opportunities >Include Exhibits- small animals >Reinforce our Mission- End Extinction
15 It s been four years, did the numbers improve? Merchandise Per capita increase since December 2011-$1.03 Sales increase since December % Net Margin increase since December % Food Service Per capita increase since December 2011-$1.44 Sales increase since December $19.5% Net Margin increase since December %
16 Up Next Bret Pfost General Manager Glenwood Caverns Amusement Park Iron Mtn. Hot Springs
17 Thank you Tracy Bret Pfost
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