Company Background
Café De Coral, established in 1968, operates over 140 self-service fast food restaurants in Hong Kong, which is the largest Chinese restaurant chain in Hong Kong. In 1986, Café De Coral became an issued company in Hong Kong Stock Exchange. Later Café De Coral expands its business in various city and countries such as Hong Kong, Macau, Guangdong and other Western countries. The restaurant currently serves about 300,000 customers per day. Café De Coral takes the advantage of broad experience in the fast food industry and makes it to become the biggest and most successful brand in Hong Kong.
1. Perform a SWOT analysis on Café De Coral
1.1 Strength
Awards for its management excellence
In the previous years, Café De Coral
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This action has angered the general public. Some unions raise protests and boycott Café De Coral. According to the news “HK: Minimum wage law and worker’s meal breaks” by Elmer W. Cagape, “By trying to exercise cost cutting measures at the expense of workers, Cafe de Coral risked its name and reputation.”. This will threaten the Café De Coral’s fast food position in Hong Kong.
1.3 Opportunity
Increase in income
After the financial tsunami, the GPD of Hong Kong increased. According to the website DimSum, “Hong Kong's gross domestic product (GDP) expanded by 2.6 per cent in the fourth quarter of 2009 after four straight quarters of negative growth.”. This will have a positive growth in the average annual salary of the working sector. As a result, more people are willing and able to purchase food from Café De Coral. The profitability will increase.
The growing industry of tourism
Nowadays tourism industry becomes one of the most important economic growth factor in Hong Kong. According to the Tourism Commission, “In 2011, Hong Kong received a record-high of 42 million visitors from around the world, a remarkable increase of 16.4% over 2010”. Such great number of tourists contributes to the fast food industry and making more potential customer in Hong Kong.
Focus on China’s market
Obviously, China is a huge market for fast food industry. China’s food industry has a positive growth of over 10% over the previous 18 years
Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.
Despite Yum! brands huge success in china, there have been a lot of risks and threats in entering the local market. In respect to that its critical to mention the oppositionof the local population in perceiving fast food industry and especially western culture entering their own market.
Fast food has become one of the biggest industries in America. Fast food is all around the world now, it is in every continent and it is very popular. Fast food has taken over the world, fast food expands from Asia to America and is popular all around the globe. Fast food is cheaper than most other foods and that is a big factor in why it is so popular. Fast food is popular because it is convenient, not expensive, and easy to access at any time of the day.
The Kingdom Animalia that is where a little coral known commonly as Mushroom Coral or scientifically known as Fungia is located. The region the are found in Western Central Pacific, in New Guinea, the Philippines, Papua, The Indo-West Pacific, the Northwest Pacific in Taiwan and from the Gulf of Alden to Seychelles in the Western Indian Ocean. The Coral comes in an array of colors, if you can imagine a color the Mushroom Coral most likely comes in that color. This means it can blend in with any type of environment due to its ability to be any color, but most commonly are purple or green. This species has been widely popular in captivity and many people with aquariums, which is very good because Mushroom Coral have been placed on the IUCN Red List
both the U.S. and international markets. China represents one of the fastest growing countries for
Many International firms competed to enter the vast China market for franchising and expanding their products and services in a market which offers a wide scope of business opportunities mainly the size of its population and the openness of China on the Western world after so many years of its protectionist policies. In this respect, Levendary Café, a huge American leading Company operating in fast food like other American companies such as McDonalds and Kentucky Fried Chicken is trying its chance to enter the China market but there are some discrepancy of views between the top management of the Company at home n America and the appointed manager to run the Levendary Café operations in China, Louis Chen and the new CEO Mia Foster. The new CEO faces many issues to deal with, the design and look of the Levendary outlets which Chen has changed and even used some plastic chairs in some outlets to the discontent and disapproval of the top management of the parent Company in America
The data was collected by Partner Net to create a statistical overview to analyze the growth of visitors in Hong Kong. Data were collected and grouped by the Partner Net (Table 1); as per the provided data and studies the percentage of mainland China visitors and tourists is 74% for 2015 and 78% for 2014 of the complete visitors in Hong Kong for the year of 2014 and 2015. Mainland China is the largest visitor market for Hong Kong. According to a record of the Tourism Commission, 28.2 million (59.6%) were same-day visitors. There were 31.3 million (66.3%) Mainland China visitors came Hong Kong under the Individual Visit Scheme which is increase of 14.1% higher than 2013 visitors and tourism (Tourism Commission
Growth potential: Despite Fast Food, being unhealthy, the Fast food industry has the largest market share in the restaurant industry. The eating out industry is expected to grow to $782.7 billion in 2016, from $586.6 in 2010. Our business concept
The problem identified in the report is Chen, the president of Levendary China, has completely changed the core design of the company to give local look and feel. Even the Levendary’s classic wooden framed upholstered chairs are replaced with an alternative of local made plastic chairs by Chen. The change in the taste preferences by the Chinese customers is another problem which made Chen to change the core values of Levendary according to the local demand. The Head-Quarters of Levendary also faced problem with Chen’s stubborn attitude and his reluctance for the change in operations in China. Foster’s leadership is another issue to be considered due to lack of international management experience. The shares of Levendary trading at discount compared to other restaurant stocks and Levendary China clearly states in its income statement: a loss of 143620$ in the year 2010. Inconsistent accounting is another drawback to be considered in the operations of Levendary café in China.
The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.
According to the survey, in United States, sales at Asian fast food restaurants have grown by 135 percent since 1999, well outpacing the growth seen in any other segment.
Café de coral (CDC) is one of the biggest Chinese fast-food restaurants. Since it was first incorporated in 1968, it has grown to own over 580outlets all over the world. In my following essay, I am going to analysis the strategy being used by CDC.
Unquestionably, Hong Kong is a blessed land where possesses prosperity and most of the elements of being a world class cosmopolitan which has successfully attracted visitors over years, especially from the mainland by emphasising our world-class shopping, dining and other urban attractions (Lam, H., 2004). Despite the flourishing scene of the tourism industry, the volatile tourist markets and growing competition from Southeast Asian countries and neighbouring destinations have posed new challenges to Hong Kong’s tourism industry.
Introduction • Focus on Café de Coral fast food shop • They opened its first shop in Causeway Bay • Over 140 shops, serving more than 300,000
Café de Coral Holdings Limited (Café de Coral) and Fairwood Holdings Limited (Fairwood) are two large catering quick service chains in Hong Kong. Since the lifestyle of Hong Kong people is working day and night, more people prefer having meals in quick service restaurants due to long working hours. Since the service of Café de Coral and Fairwood Holdings Limited can cater to the