Case Study 2

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Team #3 Janelle Bullard Alaina Nowak Onja Payne Erick Velasquez Case Study 2 FATHER AND SON PIZZERIA Summary: Mr. Vega bought the business in 2007 for $75,000 in Guttenberg, NJ; He wasted little time expanding the menu beyond pizza, subs, chicken Parmesan sandwiches and spaghetti and meatballs. He made it more of a full-blown Italian kitchen and added a dessert menu. With room for only eight tables, Mr. Vega upgraded the takeout business, introducing Internet orders, adding credit card sales, offering “take and bake pizzas” that customers could heat at home. Without a parking lot, and with on-street spots scarce, he started curbside pickup. The sauce: Tweaking the recipe he had learned years earlier as an employee, Mr. Vega started making his own sauce. So many customers asked for extra sauce and for him to bottle the slow-simmered red sauce and sell it would be a good idea. Soon, instead of making 40 quarts a week, he was making 40 quarts every two days. The Pros and Cons: Although, Mr. Vega worked long hours perfecting the restaurant’s house sauce, expanding the menu options and building a vibrant takeout trade, the business was profitable, revenues plateaued well short of where he had hoped. Two years in, Mr. Vega found himself debating the pros and cons of two very different paths forward. Should he expand his dining room either by adding a second floor to his one-story restaurant or moving down the street to a bigger storefront? In so doing, he could add tables, maybe tablecloths, and raise prices or he could bet everything on red, sell Father and Son Pizzeria and stake his future on the restaurant’s red sauce, or “gravy,” which he had started jarring and selling over the counter at the behest of his customers. It’s a go: After much thought, Carlos Vega sold his

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