The executive team has decided to invest in adding a drive-thru to one of the two locations that doesnt currently have one. (Youll remember from Week 6 that the other location without a drive-thru is in the middle of a strip center, making a drive-thru there impossible.) Based on the sales numbers from the rest of the stores with drive-thrus, adding one to this location should increase its average ticket by $1.25-$2.00. Thankfully, the tenant who had this location before the most recent one was a bank, so the parking lot already has a drive-thru lane roughed in around the building. That means the work will entail cutting out the side of the building for the

drive-thru window, putting in an illuminated menu board and intercom for ordering, reconguring the interior to include a second register at the window, making some other small tweaks to the area behind the counter to maximize workow for both interior and drive-thru orders. Putting in the drive-thru will also mean losing three parking spots in the already small lot (those that are currently in the area where the window will go) along with re-stenciling the 10 remaining parking spaces and adding directional arrows for the drive-thru.

1. Close the store during construction. The contractor claims that if the store is closed while the drive-thru is being installed, the work can go signicantly faster. He estimates that instead of taking ve weeks to complete, the job can be nished in just two since the crew will be able to work uninterrupted. As a result, the cost of the job will be reduced by approximately 20% because the workers will be working fewer total hours and equipment rental costs will go down signicantly, since they wont be used over as many days. Because this is the route the contractor would prefer to go, and because he understands that closing a location will create additional issues for The Daily Grind, he has agreed to write a clause into the contract that forces his company to reimburse The Daily Grind for a signicant portion of labor costs for every day the job goes beyond the two-week estimate.

2. Remain open, but only in the mornings. Approximately 68% of the stores transactions happen between when they open at 5:30 and noon. This option would allow the store to function as close to normal as possible during its busiest hours, while closing in the afternoons so that construction can proceed uninterrupted. The contractor said he cannot write in the same reimbursement clause into the contract if The Daily Grind remains open in the mornings because there will be too many factors beyond his control. He estimates that this option would take three to four weeks to complete, although he can offer no guarantees.

3. Continue regular operation during construction. The Daily Grind also has the option to remain open throughout the process with the understanding that doing so will affect the length of time it takes the construction team to complete the project. The contractor estimates that if business continues as usual, his crew will need ve weeks to nish the project. Again, because his team will have to work around The Daily Grinds staff and customers, the contractor can offer no guarantees that work will be completed within his estimated timeframe

1. What are the likely Responsibility Centers at The Daily Grind?
2. What non-financial measures are important to The Daily Grind to help meet business objectives?