MGMT 6730Supply Chain PresentationShawn Nanney – Summer 2014

History

Pal’s Sudden Service (Pal’s) is an American privately owned express food service company founded in 1956.

They have 26 locations dispersed throughout East Tennessee and southwest Virginia, employing more than 900 individuals.

Their niche is accurately capturing and maintaining the 1950s Americana look and feel while also incorporating the most modern technologies that help them achieve their standards.

Their operating values focus on superior quality, speed of service, and special attention to customer satisfaction.

They provide higher quality burgers, fries, hot dogs, cheddar rounds, shakes, and ice cream.

Excellent website and marketing

Pal's timeline mural

Pal's website

Pal's 15 seconds of joy

http://palsgear.com

Serious about quality

Pal’s has consistently outperformed all other national burger chains within the areas of order accuracy, customer satisfaction, health scores, customer retention, drive through wait times, and overall profitability.

They were the first Baldrige National Quality Award for a restaurant chain.

Pal's Sudden Service was the first two-time winner of the Tennessee Excellence Award, which is the State's highest honor for business quality and customer service and was presented by the Tennessee Center for Performance Excellence.

In May 2014 they were named to Inc. magazine’s 25 Most Audacious Companies. The audacious list defines the companies as “…bold, courageous, and even heroic. They see a better way to do something and work to make it happen, fearlessly committed to not only making their vision a reality but also spreading that vision.”

Leadership

Pal’s track record and reputation for quality afforded them the opportunity to open a Business Excellence Institute (BEI).

The BEI offers consultation and courses aimed at strengthening other businesses and improving their network.

753 individuals representing 219 different organizations have utilized this service since it began in 2001.

Corporate Strategy

Responsiveness (speed, reliability, flexible)?

Differentiation (unique, quality)?

Cost Leadership (price)?

DIFFERENTIATION (1) Responsiveness (2) Cost (3)

Their differentiation strategy is currently the primary key to competitive advantage(s).

SWOT Analysis

Strengths: reputation, quality, niche, regional support, technological acumen, and solid leadership and management practices.

Weaknesses: lack of exposure, geographical isolation, lack of scale advantages.

Opportunities: broader market penetration, expanded exposure, franchise expansion.

Threats: competitive advantage of larger food chains, diminishing quality of brand as it expands, expansion is limited in some areas due to supply chain limitations.

Supply Chain Analysis

Strategic Partnerships

Bank of Tennessee (service: financial – 5 East TN locations) Coca-Cola (product: beverage – 13 East TN extensions) Creative Energy (product/service: marketing – Johnson City, TN) Flower Foods (product: food/baked goods – 4 East TN locations) Intellithought (service: technology – Knoxville, TN) OEC (product: technology – Kingsport, TN) Reinhart Foods (product: food – Knoxville & Johnson City locations)

Supply Chain geography

Pal’s locations Reinhart Foods locations

Flower Foods locations