14th Street Pizza Case Study
14th Street Pizza: the next BIG thing or a sinking ship?
Introduction
While driving to his office in Khayaban-e-Nishat, Phase 6, Tanveer Yusuf was thinking about the good old days when he started 14th Street with his two best friends NaveedGodil and AmjadTumbi. Despite the amazing response that they initially got, the ship now seems to be quite in a bit of a lurch. Started by three best friends, 14th Street was supposed to be the next big thing. Being the pioneers of the 20” pizza they intended to knockout the pizza giants like Pizza Hut and Domino’s and they were successful initially. But then two of the partners, NaveedGodil and AmjadTumbi jumped ship and went to Dubai to look after their other business and became the sleeping partners at 14th Street.
Tanveer now looks after all the operations alone and he is smart enough to know that things are not going as smoothly as he would like them to be. He is unable to control his costs and therefore he is forced to sell his pizza at a higher price than his other counterparts but he does not have much choice. Knee deep in payables he is unable to come up with a solution as to how to reduce his cost or justify the high price. He expanded his business to other major areas of Karachi thinking that that will help him in increasing his revenues but even that didn’t work out as well as he expected due to growing number of pizza joints that offer similar product as 14th Street such as California, Broadway, and New York Pizza.
The competition is really tough and the switching cost for the consumer is practically zero. So why should they buy, high priced, 14th street Pizza when they can easily go for a cheaper and similar brand? Adamant to not compromise on the quality of Pizza, Tanveer is now looking for options that he can choose from to get back on firm grounds. He has assigned this task to his 6, highly qualified and motivated employees to come up with solutions to help this sinking ship get out of the thunderstorm and
Introduction
While driving to his office in Khayaban-e-Nishat, Phase 6, Tanveer Yusuf was thinking about the good old days when he started 14th Street with his two best friends NaveedGodil and AmjadTumbi. Despite the amazing response that they initially got, the ship now seems to be quite in a bit of a lurch. Started by three best friends, 14th Street was supposed to be the next big thing. Being the pioneers of the 20” pizza they intended to knockout the pizza giants like Pizza Hut and Domino’s and they were successful initially. But then two of the partners, NaveedGodil and AmjadTumbi jumped ship and went to Dubai to look after their other business and became the sleeping partners at 14th Street.
Tanveer now looks after all the operations alone and he is smart enough to know that things are not going as smoothly as he would like them to be. He is unable to control his costs and therefore he is forced to sell his pizza at a higher price than his other counterparts but he does not have much choice. Knee deep in payables he is unable to come up with a solution as to how to reduce his cost or justify the high price. He expanded his business to other major areas of Karachi thinking that that will help him in increasing his revenues but even that didn’t work out as well as he expected due to growing number of pizza joints that offer similar product as 14th Street such as California, Broadway, and New York Pizza.
The competition is really tough and the switching cost for the consumer is practically zero. So why should they buy, high priced, 14th street Pizza when they can easily go for a cheaper and similar brand? Adamant to not compromise on the quality of Pizza, Tanveer is now looking for options that he can choose from to get back on firm grounds. He has assigned this task to his 6, highly qualified and motivated employees to come up with solutions to help this sinking ship get out of the thunderstorm and