In this memo, the owner of the Juniper Café; concludes that cutting hours is the “best strategy for us to save money and remain in business without having to eliminate jobs.” While the café ’s employees are undoubtedly grateful for the intent of the memo, they may see that its logic is flawed. First, the memo does not provide enough supporting evidence to prove that the money saved by cutting hours would exceed the money lost by losing early-morning and weekend clients. Second, the owner does not seem to evaluate other options that would either cut back on overhead or change the café’s operation to bring in more revenue.
First, the owner relies on an unproven assumption about the cause of the overhead. He concludes, without justifying, that being open too many hours is causing too much overhead expense. There may be other causes, however, such as waste in other areas of management. While it is true that reducing café hours would save money spent on utilities, employee wages, and other
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There are several unstated assumptions upon which the argument turns, principally the assertion that simply being open for a certain number of hours is causing crippling overhead expenses. The owner’s argument would profit enormously from further research, which may affect the hours he chooses to cut. Customer polling could show that few people eat or want coffee in that part of town between 2 p.m. and 5 p.m., and the café could be closed between lunch and dinner, adding flex hours or overlapping shifts for the staff. The memo lacks outlining what other restaurant services are available in the area and how or if they affect the 6 a.m. to 8 a.m. block and weekend hours. Once the marketing research and brainstorming is complete, the owner of the Juniper Café will make a better informed choice for his café’s operating
I have seen a local restaurant close the doors twice in the last three years. The owners were not making enough to cover the variable costs of the company to keep the doors open. The first time they closed down it took five months before they were able to open doors again. To make it better, they had a reopening party to show the cleaning and new staff they had. The decision to close the first time came because the staff was not giving the best service which caused people to stop going there. The restaurant is out of town ten miles, which already causes an issue to make sure they receive enough business to stay open. The second time the restaurant closed its doors was a little different. The owners choose to open only on weekends from four in the afternoon to one in the morning. The amount of business on the weekends is more, and the company was not losing as much because they did not have to have keep the same amount of inventory or pay the same wages as staying open all week. Now the owners have decided the restaurant does better when open four days a week and on special holidays instead of seven days a week. Business
The second issue was the quality of food and services because the café managers are given autonomy they are free to make decisions about their outlet and how it is run. Thus allowing for each outlet to be individualised and branding of the bistro is jeopardised. When Joyce was in charge she had a strict regime which meant mangers adhered to her rules and regulations. The management may not have been as happy as they are now; they still were given motivation in the form of rewards for the top achievers while under achievers had to change or were sacked.
Greig and Peck made a major decision to not offer their customers access to free wifi in their café. This was a bold choice to make, especially when you consider that most corporate and locally owned coffee shops on average offer wi-fi to their customers. The logic behind this decision was to encourage genuine human interaction, and eliminate distractions from technology. Beyond the Bean’s hours of operations were planned to be 11:00 a.m. to 11:00 p.m., and the partners discussed that the average customer would stay for at least three hours before leaving. Taking this into consideration, Beyond the Bean may experience some difficulty contending with their competitors, and would potentially have more success offering their customers access to wi-fi. If wi-fi were to be available to customers, it could give customers the incentive to stay longer than three hours, and would
The competition is encroaching on the coffee shop but the competition is a chain. Tim has the ability to make his coffee shop an individual coffee shop
Five years ago David and Alison opened a small café inside the nursery. They now have two full-time staff and an additional part-time staff member who works over lunch-time and on weekends; although during the school holidays Alison’s daughter also assists in the café. A new café opened for business 18 months ago around the corner, in a small strip of shops attached to a business park. This new operation is open Monday – Friday from 7am–3pm offering breakfast and lunch, specialising in gourmet food and beverages.
Positioning strategy helps a company in creating its identity and its products/service it provides (Anderson, 2011). Café Bijoux offers a relatively low price for a cup of soup and a sandwich, while offering healthy and tasty meals to their targeted market (primarily workers at the City Hall). To keep the cost low, the management did not printed a menu instead it was written on a chalkboard and was updated daily. In addition, the condiments were handed out to the customers as they picked up their orders. Business operations were from 10 am till 3 pm, mainly attracting customers from local surrounding business for lunch,
My informant explained an observation she had made about the flow of the customers in the coffee house. Due to the location, the flow of customers corresponds to the arrival of public transportation, trains and buses. When a train arrives and customers get off the train, many wait to transfer to a bus close to the entrance of the coffee house. During that time, there is usually an influx of customers in the restaurant. Sometimes the line to order extends to the entrance door, during this time the customers wait time to receive their order is much longer than the wait to place an order. My informant explained that the extended wait time for an order was due to a limited number of staff working in the kitchen.
Energy Conservation. To conserve energy, it is my recommendation that the company have employees shut
The current manager, Joe Belfone, works four days a week. Joe is a good manager, but when he’s not there on Fridays, the café does not run as smoothly. The owners of the café
Most of these restaurants stay open until after midnight, but the on campus version only stays open until the late afternoon. For example, at The University of Alabama the on campus subway hours are from 7:30 am to 7:00 p.m., when the subway franchise normal hours are usually 7:00 a.m. until 11:00 p.m., with some even being open 24- hours. at This is inconvenient for students with classes in the later afternoon and night time. From personal experience it is such a disappointment when your favorite restaurant is closed before you can get to it. This often leads students to travel off campus to the same franchise at a different location. The money spent at the other locations could be spent at the on-campus restaurants and help bring in more income for the University. Extending the hours of these places would also be beneficial to the university because it would attract more customers, and more customers brings in more money for the university as well as the food chain. Those who disagree may argue that on campus restaurant hours should not be extended because it would ultimately cost more money. However, since more income would be brought in from customers, it would accommodate for any extra money that would have to be spent. Allowing students and even factuality the opportunity to stop by these restaurants while on campus instead of having to travel to
Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).”
(3a): What trade-offs has Starbucks made? What different activity choices has it made from its rivals?
I have had the chance to review the information you presented on how to improve Persuade Cafes profits and Stock prices. I would like to take this opportunity to discuss a few changes that I believe are necessary to make, in order for Persuade Café to operate at a profit and increase year over year sales as well as continue to please clients it serves.
Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval.
Starbucks’ shares have grown more than 1500% over the past decade. Financially, it has been an oak tree in an ever changing economy with customers that have ever changing demands. However, there has been increased concern for the financial viability of the coffee shop a recently announced plan to close down over 600 stores that were said to be underperforming domestically. That means that more than 1,000 jobs will be eliminated. As scary as that is on the local front to top management, the executive staff feels that it is the only way to recover from it’s shocking $108.7M loss for the 2nd quarter this fiscal year.