PROJECT

IN
ECONOMICS

Submitted to:

Ms. Maria Isabel G. Samson

Submitted by:

3-1
 SHAKEYS
PIZZA PARLOR

Product:

Pizza
(Fast food)
Brief History of the Company

The history of Shakeys Pizza Parlor begins in 1954, when Sherwood Shakey Johnson
opened the first Shakeys Pizza Parlor in a remodeled grocery store on 57th and J Street in
Sacramento, California. Originally established as Ye Public House for pizza & beer, Johnson
indulged his passion for Dixieland jazz and added live ragtime music to mix, featuring banjos
and player pianos throughout his rapidly expanding franchise. As the concept caught on, the
Shakeys name became synonymous with the Worlds Greatest Pizza along with light-hearted
slogans such as Youll have fun at Shakeys, also pizza, and You can feed your face at any
old place, but you can warm your heart at Shakeys. For 60 years, Shakeys has provided fun,
food, music and memories for generations of pizza lovers. The brand became a well-established
franchise in the Philippines, where it began in 1975 under the ownership of the country's largest
food conglomerate, San Miguel Corporation, primarily promoting their San Miguel draft beer.
Beginning with a restaurant on Makati Avenue in Makati, the brand expanded rapidly in Metro
Manila, with most of the restaurants offering live music. San Miguel had difficulty maintaining
the consistency of the branches, and ultimately sold the franchise in 1987 to International Family
Food Services, Inc. (IFFSI), a group led by sports executive Leo Prieto. By 1997, the brand had
evolved into mostly a fast-food franchise.

Description of Product

Shakeys believes its superior value arises from its ability to serves its guests with
differentiated menu offerings and high-quality products. Our iconic chicken n mojos and world
famous original thin crust pizza appeal to customers across all ages, demographics and various
income levels. From time to time, Shakeys introduces menu items that have a limited time offer.
These innovative menu items make for a renewed and exciting dining experience for every
Shakeys customer. Shakeys also offer its products in bundled Family Deals that are ideal for
sharing. It has since become a popular menu offering in Shakeys stores. Shakeys ability to
provide a welcoming environment to families and social groups through its bundled menu
offering, coupled with the appropriate store ambience and location, has become a great value-
addition to the Shakeys brand identity.
Raw Materials

Flour is ground from grain. All grains are composed of three parts: bran (the hard outer
layer), germ (the reproductive component), and endosperm (the soft inner core). All three parts
are ground together to make whole wheat flour. To make white flour, the bran and the germ must
be removed. Since bran and germ contain much of the nutrients in grain, the white flour is often
"enriched" with vitamins and minerals. Some white flour has also been fortified with fiber and
calcium. Baker's yeast is sold fresh in cakes or dried in powder form. Mozzarella cheese was
originally made from buffaloes' milk. It is stored in salted water or whey to keep it moist. For use
as a pizza topping, the mozzarella is shredded. Pizza sauce is made from pureed tomatoes
seasoned with a variety of spices including garlic, oregano, marjoram, and basil. Both fresh and
dried spices can be used. The list of pizza toppings is exhaustive. Meats include sausage,
pepperoni, bacon, chicken, and pork. Vegetables include mushrooms, spinach, olives, broccoli,
onions, green peppers, and artichokes. Some of the toppings may be partially cooked before
being added to the pizza.

Distribution Channel

These various store formats are tailored to suit the needs of the consumers in these
markets. The successful establishment of Shakeys free-standing stores in 2005 has reinvigorated
the dining experience of customers. Shakeys also has a policy to constantly maintain freshness
and newness in every Shakeys store. Store remodel programs have thus been a major key for
success in achieving high daily average store sales across their stores.

Shakeys utilizes multiple distribution channels. Aside from the traditional dine-in
services which account for approximately half of its total sales, Shakeys has some more creative
sales channels to provide convenience and accessibility to its customers. Shakeys has an
efficient delivery system using a single digit delivery hotline of 77-777 within Metro Manila
and adjoining areas. It has also developed an online sales platform to allow overseas Filipinos to
Send a Shakeys to their families and friends in the Philippines.
Market Structure

Monopolistic Competition

The market structure of Shakeys is monopolistic industry in which many firms offer
products or services that are similar, but not perfect substitutes. Barriers to entry and exit in the
industry are low, and the decisions of any one firm do not directly affect those of its competitors.
All firms have the same, relatively low degree of market power; they are all price makers. Firms
in monopolistic competition tends to advertise heavily.

Reaction

Shakeys Pizza Parlor is a world class fast food restaurant that believes its superior value
arises from its ability to serves its guests with differentiated menu offerings and high-quality
products. Their iconic and world famous original thin crust pizza appeal to customers across all
ages, demographics and various income levels. From time to time, Shakeys introduces menu
items that have a limited time offer. These innovative menu items make for a renewed and
exciting dining experience for every Shakeys customer. Shakeys also offer its products in
bundled Family Deals that are ideal for sharing.

Problems Encountered

Shakeys pizza problem encountered deals with the sales, advertising and promotion
programs do that pours business into the top of the bucket. As long as these programs
are effective the bucket stays full. Then the business is running well the hole is small and few
customers are leaving. Then the operation is weak and customers are not satisfied with what they
get therefore people start falling out of the bucket through the holes faster than they can be
poured in through the top. The bucket Theory is about maintaining and developing the business
potential and establishing mutual loyalty to the customers you have and let them be the first
priority.
Recommendation

The number one problem of the establishment regarding food is the serving time. The
staff should work faster and they should have a maximum time for serving. Regarding promotion
Shakeys internet blog site should be improved and updated by the management. In terms of place
the parking area should be widened and renovated by the management. The ambience should
also be improved by the management. Regarding the establishment service towards customer
unscented restroom is the main problem. They should keep the rest room free from foul odor.
There many disinfectant with scent they should not use strong scented disinfectants. Lastly the
regarding staff the main problem is their attitudes. The management should conduct seminars
regarding personality development and proper handling of customers. In this way the staff will
be trained and act properly in front of the customers.

References

https://en.wikipedia.org/wiki/Shakey%27s_Pizza

http://shakeyspizza.ph/corporate/home

http://edge.pse.com.ph/companyInformation/form.do?cmpy_id=664

http://shakeyspizza.ph/corporate
 Name of Students:

Kim Cyril C. Debulcos