Cup A Joe Café (CAJ) got its start by offering some of the comforts of home to the men and women of the United States military, as well as those Department of Defense civilians that are both deployed at bases overseas and in areas of conflict. The coffee cafés offer a casual and comfortable place where all customers can enjoy premium coffee beverages and fresh-baked treats while relaxing and listening to music.
Cup A Joe Café owns and operates cafes at military posts in North America, the Middle East, Southwest Asia, and Africa. It has locations in California, Texas, Kentucky, Georgia, Virginia, Kyrgyzstan, Afghanistan, Iraq, Kuwait, Qatar, and Africa. Its cafes offer organic coffee, espresso-based drinks, teas,…show more content… Our competitors include Starbucks, Dunkn Donuts, Java Hut, installation dining facilities, and office coffee areas that use Keurig brewers and K-cups.
The specialty coffee market is intensely competitive, including with respect to product quality, innovation, service, convenience, and price, and we face significant and increasing competition in all these areas in each of our channels and markets.
Risk #2 - Economic Conditions: Cup of Joe is dependent upon customer patronage which in turn is dependent on globalization or macro-economic conditions around the globe. If customers have less money, then customers may stop or cut back on coffee, pastries, and smoothies. Less discretionary spending may be a result of job losses, foreclosures, bankruptcies, higher rates and taxes, increases in energy prices, and the fluctuations of our global economy. Less traffic will adversely impact financial performance because reduced revenues without a corresponding decrease in expenses result in sales deleveraging, which creates stress on profit margins. If negative economic conditions continue over a period of time and or worsen, customers can make their changes in spending routine, which in turn will result in less spending in the future. Cup of Joe also operates in in different countries that have all different currencies and currency rates