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Cafe De Coral analysis

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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 …show more content…

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

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