Live Case – Project

Build a Sustainable Business Plan for 3rd Party Partnerships at Donatos

A Collaboration Between

Project Synopsis

The restaurant food-delivery space has undergone rapid changes recently. The advent of technologies like user-friendly apps and tech-enabled driver networks, COVID-19 lockdown and distancing requirements, and shifting consumer expectations have elevated “ready-to-eat food delivery as a major category” poised to remain a permanent fixture in the dining landscape” (Ahuja, 2021).

 While food-delivery service certainly served as a critical lifeline to customers during the height of the COVID-19 pandemic, the change in how and where consumers eat and the sharp increase in demand for ready-to-eat food delivery service raises a number of challenges and questions for our company. Donatos already offers in-house delivery; delivery makes up nearly 50% of Donatos revenue and must remain profitable for us.  As minimum wage skyrockets across the country and DONATOS compete for drivers with the ‘gig economy’, we have to figure out how to best adapt to this rapid change in the environment. For instance:

  • What are the pros and cons of using 3rd party delivery partners like DoorDash, Grub Hub, and Uber Eats? How does this compare to self-delivery, where the food is delivered by restaurant employees? 
  • What are the potential impacts of 3rd party delivery on profitability and overall guest experience?
  • What are the reactions of consumers to 3rd party delivery, especially in terms of the cost and value added?

These are just some of the important questions Donatos is asking as the company seeks to better understand the impact of 3rd party delivery at the brand which already offers in-house delivery. The bottom line: Donatos want to compete with the best solution that maximizes sales while controlling costs. Donatos is looking to you for solutions. 

The company needs a comprehensive understanding of the potential impacts, and is asking you to provide actionable recommendations on how to best incorporate 3rd Party Delivery into our existing service.  This includes when to implement, what the costs of each service is and if 3rd party delivery either through their channels or our channel (utilizing DoorDash Drive) makes sense.  Additionally what are the customers reactions to 3rd party including the cost and value it provides. We also ask that you propose a complete financial model as a key component of the solution you propose.

Project Topics

Customer Service

Operations

Company Information

CompanyDonatos Pizza
HQGahanna, OH
RevenueN/A
Employees500-2500
StageLarge Enterprise
Hiring PotentialFollow-on Projects, Formal Internship, Entry Level Full-Time
Websitehttps://www.donatos.com/

Company Overview

Donatos Pizza is a pizza delivery restaurant franchisor headquartered in Gahanna, Ohio, United States. It has nearly 200 locations in eleven states, with the majority of locations in Ohio.

Experiential Learning Program Details

SchoolButler University
Engagement FormatLive Case - Think "Hackathon" or Case Competition with a whole class of students! This learning format allows educators to deliver experiential learning to students at scale. Students are often split into groups to work on a live case (or a series of cases) from a real host company that directly relates to key learning objectives.
CourseMBA 505 Gateway Experience (Summer 2022)
Level
  • All Graduate
Students Enrolled10-20
Meeting Day & TimeApril 29 through May 14
Student Time Commitment8-15 Hours Per Week
Company Time Commitment3-5 Hours
Duration1.29 Weeks

Program Timeline

Touchpoints & Assignments Due Date Type
April 29, 2022: Course Begins

April 29, 2022: Course Begins

*Students Register on CapSource (see Canvas for registration link and course code)
April 29th, 2022 Event na
Library Research Knowledge Check

Library Research Knowledge Check

*PM 5:00 - Complete Library Research Knowledge Check
May 5th, 2022 Event na
Complete Practice Exercise: Database Research on Starbucks

Complete Practice Exercise: Database Research on Starbucks

*PM 5:00: Accessing and utilizing library resources will be integral to your success in your MBA studies, as you will frequently need to conduct research for projects and assignments. It’s especially important for the Gateway Experience, as conducting independent research is a core component of this course. After completing the general Library LibGuide, complete the Practice Exercise for Database Research using Starbucks as the company. Later on, you will be introduced to the LibGuide for Donato's Pizza.
May 5th, 2022 Event na
Orientation

Orientation

*AM 10: Attend your orientation having completed Module 0 and Module 1 and be sure to bring any questions you have about the Gateway Experience Course.
May 6th, 2022 Event na
Be Prepared for the Project Launch!

Be Prepared for the Project Launch!

Get ready for the project launch by reviewing materials and completing a series of tasks by May 9. See details on this milestone below.
May 9th, 2022 Event na
Design Thinking Knowledge Check + Module 3 Opens

Design Thinking Knowledge Check + Module 3 Opens

*PM 12:00: Module 3 becomes available on Canvas *PM 5:00: Complete the Design Thinking Knowledge Check and post to Design Thinking in Action Discussion Board
May 10th, 2022 Event na
Preparation Week - Design Thinking, Donato's Lib Guide and Get to Know Donatos Pizza

Preparation Week - Design Thinking, Donato's Lib Guide and Get to Know Donatos Pizza

Welcome to the Gateway Experience, your first class in the Butler MBA program. If you are here, that means you have completed Module 0, Module 1 and more than likely Module 2. Here in Capsource you will find information about the project and company. During this week of preparation, which begins Saturday May 7th and culminates during our first live session on Friday, May 13th, you should work individually and with your team (beginning May 11th) to complete the following: Design thinking introduction Donato's Lib Guide Prepare for your meeting with the client leadership, scheduled for Friday May 13th. Please see the syllabus for the exact time and location of the class meeting.
May 13th, 2022 Event na
Attend Live Session: Design Challenge

Attend Live Session: Design Challenge

*PM 6:00: Attend Live Session: Design Challenge - students will meet Donatos Company representatives to learn more about the client through a presentation and Q&A.
May 13th, 2022 Event na
Presenting Your Solutions

Presenting Your Solutions

*PM 2:00: Complete Group Activity - Preparing your Solution *PM 2:30: Attend LIVE Session - Solution Presentations to Donatos *PM 3:00: Module 4 becomes available on Canvas *PM 4:30: Complete Peer Feedback *PM 4:30: Complete Self Evaluation *PM 4:30: Attend LIVE Session - Case Feedback and WINNER announced *PM 5:00: Attend LIVE Session - Facilitator and Peer Feedback *PM 6:20: Attend LIVE Session - Summary and Wrap Up   NOTE: The above times, except for the 2:30 presentation start time, are approximate and subject to change based upon the time needed to decide a winner and provide feedback to the teams. Please do not plan anything immediately following these sessions as it is expected you participate until we wrap up the final session.
May 14th, 2022 Event na
PM 2:00 ET - UPLOAD FINAL PRESENTATION PM 2:00 ET - UPLOAD FINAL PRESENTATION
Upload the following: Presentation All Ideation notes
May 14th, 2022 Submission Required submission-required
Complete Reflection on the Experience

Complete Reflection on the Experience

*PM 5:00 - Complete 'Reflecting on the Experience'
May 15th, 2022 Event na

Key Project Milestones

  • May 9, 2022 - Prepare for Project Launch

    Get ready for the project launch by completing assigned modules, reviewing the business case and project objectives, and diving into the project resources.

    • Complete Modules 0 and 1 by April 6
    • Read and annotate the following resources by May 9
      • Article: “Ordering in: The rapid evolution of food delivery” by McKinsey & Company
      • Vendor Blog
    • Review and reflect on the project synopsis and milestones by May 9.
      • Are there terms or concepts that are unfamiliar to you?
      • What knowledge and skills do you imagine you’ll be drawing on and utilizing for this project?
      • Are there skills you need to brush up on, or concepts you should familiarize yourself with in order to perform tasks and contribute to the completion of deliverables and the overall project?
      • Review the remaining project resources. How can you utilize these resources to prepare yourself as an effective and contributing team member on this project?
        • Should you schedule time to watch videos to become familiar with financial modeling, for instance?
        • Would it be helpful to you and your teammates if you review the various templates to become familiar with the tools you may be using?
        • Which resources should you devote more time to, given your previous training and experiences?

    Suggested Deliverable:

    While not required, it is suggested that you annotate articles, take notes on key concepts and methods introduced to you in videos and other guides, and document your questions and ideas on the project objectives, business case, and resources.

  • May 13, 2022 - Deep-dive on DONATOS and the current challenge

    • Develop an understanding of the DONATOS brand (the story, the business, the mission and vision).
    • What is DONATOS ’ value proposition?
    • How many different products or services does the company offer? How are they categorized and defined?
    • Dominos, Papa Johns, Pizza Hut, and Marcos are DONATOS top competitors; How is DONATOS differentiated from their competitors?
    • What are the different customer segments? What channels are used to earn those customers? What are the key drivers for customers to purchase their products?
    • What real-world challenge, problem or initiative is DONATOS aiming to solve or pursue? What does a successful project look like?
    • What is the preferred method of communication between you and the client?
    • Review the current DONATOS execution of 3rd party transactions versus core business transactions.
      • What is the guest experience scores in this area?
      • How does this impact profitability, speed and product quality?

    Consider the following approach to defining the challenge/problem:

      • Who is/are the target audience/customer/user whose perspectives you seek to understand?
      • What method(s) will you use to learn about the topic from their perspective? To learn about their needs?
      • How will you come to understand and define the status quo?
      • What tools will you use to organize and analyze the information you gather, and why?
      • What patterns and themes emerge from your analysis? What are the most prominent and/or high impact issues, challenges, opportunities?

    Suggested Deliverable:

    Document of work-in-progress that includes:

    • Overview of the current challenge.
    • A description of the company and its brand.
    • High-level description of target audience, customer segments, competitors.
    • Company’s needs and goals for the project and anticipated obstacles.
    • Preliminary list of resources.
    • Preliminary annotations on research findings, industry-related frameworks/practices, approaches, strategies, ideation, etc.
    • Plan for successfully completing the project (major action steps/tasks).
  • May 14, 2022 - Develop & Present Solution

    • Dive deep into 3rd party vendors their share of market and how commission rates vary. Concentrate on these three providers: DoorDash, Grub Hub, and Uber Eats
    • How would you describe each vendor’s food ordering and delivery model (e.g. order only, order & delivery, fully integrated)? What does the process look like from end-to-end?
    • Validate profitability of 3rd party transactions; How many transactions are needed to make profit?
    • Understand flow and function in the restaurants; is there a way to save additional labor?
    • Review guest check, customer value, purchase cycle of core customer versus 3rd party. Are they a new customer? Do they spend more at the brand? Do they frequent more often?
    • Define if a third party transaction brings in a new customers to the brand.
    • Review guest experience of core customers versus 3rd party.
    • Identify the opportunities from a product quality standpoint with third party versus self-delivery.
    • Construct a matrix/table to analyse/compare competitors’ in-store and 3rd party menus based upon a most popular selling standard menu item (e.g. pepperoni pizza). What similarities and differences do you observe between and within categories? What relevant patterns emerge? For instance, do prices vary by 3rd party provider?
    • Should 3rd party product menus be reduced based on other restaurants brands in this space?

    Consider the following approach:

    • Gather existing information (data, documentation, input from stakeholders) that are to be the subject of your evaluation and improvement.
    • Brainstorm/ideate
      • What sources of information will you consult to aid your understanding and analysis of the issues, challenges, opportunities?
      • What concepts, frameworks, and models from the field are applicable and useful?
      • Considering the range of ideas that emerge, what are some realistic, possible solutions that rise to the top?
    • Work to produce prototypes, examples of how you integrate the content you curated and annotated in the previous step.
        • What form will your prototype take? What do you want to demonstrate to the client with your prototype; what are your goals for the prototype?
        • How do you anticipate real users would behave, think, and feel when interacting with the end product? How do you come to these conclusions?
        • Are there any flaws or constraints that need to be addressed?
    • Produce a comprehensive document that outlines the specific recommendations. 
      • This may include a combination of strategies, action steps, prototype copy, tools, etc.
      • How can the company evaluate the effectiveness of the content you’ve created?

    Validate the focus on 3rd party as a system with data that shows the impact on profit, labor savings and along with customer data. Looking for a complete financial model. How does this impact profitability and improve the overall guest experience?


    Suggested Deliverable:

    Complete financial model demonstrating projected impact on KPI’s. Summary report and presentation.

Academic Mentors

Instructor

Marietta Stalcup

[email protected]

Instructor

Luke Bickel 

[email protected]

Instructor

Ashley O'Salway

[email protected]

Instructor

Mark Rademacher 

[email protected]

Instructor

Marie Mackintosh 

[email protected]

Instructor

Rowena Winkler

[email protected]

Instructor

Teresa Williams 

[email protected]

Instructor

INNA EKHAUS

[email protected]

Instructor

Patricia Fox

[email protected]

Instructor

Jane Siegler 

[email protected]

Instructor

Ralton Morrison 

[email protected]

Instructor

Francis Bowen

[email protected]

Assigned Students

Student

Philip Palmer

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Student

Johannah Foreman

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Student

Zeroy Lawson

[email protected]

Student

Douglas Gage

[email protected]

Student

 

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Student

Ry Beck 

[email protected]

Student

Tareq Alqaisi 

[email protected]

Student

Brad Lewis

[email protected]

Student

Scott Goodwin

[email protected]

Student

Alex Turner

[email protected]

Student

Jacob Blanchard

[email protected]

Student

Ryan Quinlan

[email protected]

Student

Jack Brusa

[email protected]