Cafe Industry and Strategic Analysis

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The economy is up to a slow recovery after the recession, which means consumers are more sensitive to price changes. The coffee shop industry as a whole is subject to adverse effects brought by price changes in dairy and coffee products

Goals, Mission, and Proposed Strategies

Mission:

Cafe Gerrard’s [Appendix A] mission is to provide high quality coffee and bakery goods as well as superiorly efficient services, to our consumers and members of the surrounding community. We at Cafe Gerrard strive to create an inviting and relaxing environment that appeals to the large student demographic; our services are tailored and aim to help consumers quickly re-energize in a manner that is convenient to them and efficient for us. Our key value proposition is convenience, to offer a wide variety of services in the most convenient method possible, whether in store, or through our unique delivery service.

Goals / Strategies / Technologies:

1. To rebrand our business and develop brand awareness from consumers through more effective marketing techniques- Social Media, Website, Marketing development

Previous marketing techniques were not effectively used to reach Gerrard Cafe’s customer base or to provide awareness of its brand. Marketing now is much more affordable and can reach a wide range of consumers.

Our strategy to engage consumers and gain their loyalty to our brand is by marketing our cafe as a hybrid between fast service, quality service and a social/relaxing area for consumers. We believe that consumers want more than a food pitstop, they want quality service and an engaging environment. Our primary consumers are university students who yearn for fast, efficient service grab a satisfying meal in a hurry. Another key demographic is the consumer base of consumers who work downtown, who will demand the rapid and convenient service that we provide.

Through the use of various social media platforms such as Twitter and Facebook, we can drive our brand into the lives of consumers and establish our brand as much more than a standard coffee shop. By posting useful information to our consumers about current events rather than bombarding them with sales advertisements, we can win over consumers and establish our brand image.

Developing a website will allow for consumers to have constant access to crucial information such as store hours and our menu options. A website will help us in driving our image as a hybrid cafe with quality fast service and an engaging social environment. With our brand image in place, our ultimate goal will be achieved in becoming students first choice of hot beverage and specialty food provider.

2. To provide a customized, unique experience for each patron - CRM, Mobile Apps, and customer loyalty programs

In keeping with our roots, customer loyalty and our loyalty to them will be a major focus. By tailoring our service to each and every unique consumer, new consumers will remember our brand and choose Cafe Gerrard over its competitors, ultimately driving profits and establishing consumer loyalty. To provide customizable services we will offer each customer a unique ID number, with which a customizable menu containing their favorite food and drinks is associated. No matter in store, in class, or at work, with the ID number the customer’s favorite order is just one click away. This process is facilitated through a mobile app in conjunction with our website/IT systems to provide convenience to our customers. Their unique ID number is also used to track purchases and preferences using our CRM system, ensuring that we always meet their needs and tailor our service to each individual.

Convenience is king. Providing students the ability to order our products from a computer and their mobile devices, wherever they are, is just one technique we are implementing to meet our strategy or customer customizability. We have also extended our service hours, much like local libraries, to provide service to students during exam periods. Students can choose to pick up their food and beverages at our store, or we have exclusively created the option to have a campus-wide delivery. We promise a 30 minute or less guarantee to all deliveries within 4 block radius, encompassing the downtown campus and surrounding area. With the usage of bicycles for our delivery services, our consumers can appreciate our efforts for a greener community and a healthy workforce.

3. Prepare our cafe shop for a national franchise operation - Microsoft Dynamics ERP

Our goal as a business is for continuous improvement and ultimately to turn this simple coffee shop into a national franchise operation. Franchising leads to complicated issues such as sharing information throughout multiple franchises and providing franchisors with the tools they need to successfully utilize Cafe Gerrards established market image. Our strategy is to use the Microsoft Dynamic ERP system in the present to help manage our day to day issues efficiently and in the long run using Microsoft Dynamics to propel us into an easy transition to our franchise operations.

With its affordable rates for small businesses and it easy interface that is based on common programs such as Outlook and Excel, we know that this ERP system will help us in managing the day to day financial, inventory, and payroll issues that are present. Management can easily access inventory levels and place daily orders as needed and critical employee payroll information can be tracked and monitored at anytime.

Comprehensive data is stored on a server that provides security and ensures accessibility for future franchisors. In addition with the easy interface employee training, resistance is a minimal. In the long run, future franchisors would simply need to purchase access to our system in order to utilize our system. By establishing an efficient user friendly ERP system, our goal of establishing a franchisable national operation will be obtained.

To improve profitability comes with the need for newer, smarter, more efficient technologies. Our strategy to drive profits starts with our unique waiting line model assisted with our advanced Point of Sale (POS) technology that provides for optimal service and consumer turnover.

Our strategy is to have three business units within our store. One POS terminal for handling our express customers who want simply a coffee or beverage and want to promptly leave the system. Our second terminal is for consumers who want more of a meal from our speciality menu such as a sandwich or soup bagel combo. By having this terminal