Kudler Fine Foods Problem Statement

Kudler Fine Foods Problem Statement

Rozenia Cummings

University of Phoenix

Abstract

This paper provides a problem statement which, focuses on the issues at Kudler Fine Foods a premiere gourmet grocery store. This paper will focus on two weaknesses of Kudler Fine Foods operational model: 1) buying a perishable inventory with a short shelf life in bulk for all three locations and 2) having internal specialty shops in each store with a high pay-roll and provide recommendations on how to turn these weaknesses into opportunities. In this paper I will also describe an end vision of Kudler Fine Foods if the recommendations are followed.

Kudler Fine Foods Problem Statement

Kudler Fine Foods (“KFF”) was established in 1998 in California as a premiere gourmet grocery store for shoppers who are searching for the finest meats, produce, cheeses, and wine. KFF uses only the finest organic ingredients purchased from organic farmers and uses unbleached flour and do not add unnecessary preservatives. The food is rotated from the shelves on an ongoing basis and the items that are still in good condition are donated to local homeless shelters and food kitchens. KFF has three locations in California, La Jolla, Del Mar and Encinitas, Kathy Kudler the owner of KFF handles all the buying the inventory for the stores and buys in bulk for all three stores. Because KFF customers expect a high-quality product inventory is rotated from the shelves on an ongoing basis (Kudler, 2003). Store employees are constantly tending to the inventory to make sure that fresh product is always on the shelf. This operations model requires KFF continually to buy new inventory and not receive the best utilization of the inventory on the shelves.

KFF has also hired high priced specialists who advise and assist clients with their culinary needs, these specialists are...