Marketing Analysis : Expresso Espresso Coffee Shop

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Expresso Espresso coffee shop (EE) opened in March 2006 across the street from the University of South Alabama in Mobile. The shop targeted the 13,000 students as well as the faculty and staff. Todd Sylvester, the owner, has big dreams of expanding to another location. Although the business concept offered a warm environment with high quality products, it lacked sustainability, market knowledge, and competitive options. In spring 2006 the business was operating at a negative net-income. The following report explores the case of EE during the spring of 2006 and discusses alternative courses of action to current business strategies.
The biggest name in the coffee industry is Starbucks. Starbucks is gaining much ground by expanding rapidly in …show more content…

The margins are not there for them to be profitable. The owner does not want to raise prices because he has his core customer base that are his friends and he wants to cater to them. That is important but at the same time he needs to realize this is his brand and his business. The bottom line is making money. You can see some spots where he can cut costs and improve his margins. The articles state that the last thing a customer going to get coffee is thinking about is how much they will spend for that cup of coffee. If there is a friendly atmosphere that caters to the customer they are happy to pay that extra $1 for a cup of coffee. Promoting how they brew their coffee is of utmost importance when raising prices. It has to be clearly explained why their prices are what they are and educating the customer on how their coffee (Espresso) is made will help with that process.
EE is currently operating at a negative net-income. They are spending more on operating costs than they are making a month. In order to break even Todd needs to do around $24,000 worth of sales each month.

EE does not currently have the funds to open another location. It would not be smart of Todd to expand when he’s not able to keep his current store in the positive. Todd should spend more time working at this current business and trying to make it better. Me might not be able to work for the church while also running his store. He needs to put more time and energy into his own store. This

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