Vellore Pizza Co. — Operations & Supply Chain
The operations and supply chain — the store formats and kitchen operating model, the supply chain and procurement, technology and delivery infrastructure and the operational performance metrics.
Section 8 · Business Plan
Operations & Supply Chain
The operations and supply chain — the store formats and kitchen operating model, the supply chain and procurement, technology and delivery infrastructure and the operational performance metrics.
Operational excellence is the foundation on which Vellore’s brand
promise of consistency and speed is delivered. The operating model
centres on a central commissary, standardised store operations, an owned
technology stack, and a delivery logistics layer — each engineered to
drive throughput, protect quality and lower unit cost as the network
scales.
8.1 The Central Commissary
The central commissary is the operational and economic heart of the
business. It centralises dough production, cheese blending, sauce
preparation, portioning and packaging procurement, then distributes
prepared inputs to corporate and franchise stores on a regular delivery
cycle. Centralisation delivers three benefits simultaneously: it
standardises quality (every store works from identical
inputs), it lowers unit food cost (through scale
procurement and reduced in-store waste), and it creates a
high-margin internal revenue stream as the commissary supplies
the entire network at a markup. The commissary is built in FY1 at a
capital cost of approximately R42 million and reaches meaningful supply
contribution from FY2 as store density grows.
8.2 Store Operations & Quality Assurance
- Standardised recipes & portioning. Central
inputs and documented build standards eliminate store-to-store variance
in the product the customer sees. - Throughput-optimised kitchens. Layouts and
equipment specified for peak-hour delivery throughput rather than
dine-in service. - Digital quality audits. Regular mystery shopping
and app-based store audits, with customer ratings feeding directly into
operator scorecards. - Training academy. Structured onboarding and
ongoing training for corporate and franchise staff to protect operating
standards at scale.
8.3 Technology Stack
Vellore’s proprietary technology platform, built in FY1 at a cost of
approximately R24 million (plus ongoing enhancement capex), comprises
four integrated layers: a consumer ordering app and web
front-end; an in-store point-of-sale and kitchen-display
system; a dispatch and delivery-tracking
layer; and a data and analytics platform for demand
forecasting, menu optimisation and personalised marketing. The platform
integrates with major third-party aggregators for reach while steering
customers toward the first-party app for margin and data ownership.
8.4 Delivery Logistics
Delivery is treated as a core operational competency rather than an
outsourced afterthought. Vellore operates a hybrid model: an owned
dispatch layer coordinates a mix of in-house riders (in high-density
corporate catchments) and integrated aggregator fleets (for surge
capacity and reach). Delivery cost is modelled at approximately 5% of
corporate store revenue, and time-to-customer is the headline
operational KPI, monitored in real time across the network.
8.5 Procurement & Key Input Risk
Cheese is the single largest and most price-volatile input in the
pizza category. The Company mitigates this through long-term supplier
agreements negotiated at network scale via the commissary, forward
purchasing where appropriate, and recipe engineering that protects
perceived quality while managing cost. Energy reliability is addressed
through backup power systems at corporate stores and as a franchise
standard, reflecting the operational reality of intermittent grid
supply.
8.6 Key Operating Metrics
| Metric | Target | Rationale |
|---|---|---|
| Average delivery time | ≤ 30 minutes | Category-leading speed; key satisfaction driver |
| Food cost (% of store revenue) | ~30.5% | Protected by commissary scale procurement |
| Store EBITDA margin (mature) | ~24–27% | Delivery-led, low-footprint formats |
| Order accuracy | ≥ 98% | Digital ordering reduces error |
| App share of orders (FY5) | ≥ 45% | Margin & data ownership vs aggregators |
| New-store payback | ~3–4 years | Consistent with category benchmarks |
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Vellore Pizza Co. (Pty) Ltd.