Strengths
Fast and easy
It provides an easy breakfast, which is fast, and reliable for those who are on the go, and have busy schedules. This is convenient for workers who need to be ready for work early and if running behind can buy a coffee or something for lunch. It also works similarly for students and parents.
Safe Haven
It provides a safe meeting area for all aged people- unlike a night club or pub which is not safe for students and the elderly.
Also, friends and family can meet in a relaxed atmosphere. The bean bags represent the symbol of relaxation in the café, where people can sit back and relax in comfort.
Location
Placing the café in Carramar is a strategic plan, as Carramar is a busy area and there are limited cafes there, so it attracts more people in the region with little competition.
The café is close to recreational areas such as a Golf Club, so after golf people can gather and wind down after a game at the café.
Pricing
The beverages are cheap so families and students can afford the drinks that the café offers. The cheap drinks allow The Bean Bag Cafe to have a competitive advantage over other cafes in the area.
Seasonal Changes
In the summer people can come into the air-conditioned café and have a cold beverage. In the winter customers can enjoy the heated café with hot beverages and hot food.
Clothing Casualization
Gives workers the opportunity to wear what they wish to work and feel relaxed within their working space.
It provides an easy breakfast, which is fast, and reliable for those who are on the go, and have busy schedules. This is convenient for workers who need to be ready for work early and if running behind can buy a coffee or something for lunch. It also works similarly for students and parents.
Safe Haven
It provides a safe meeting area for all aged people- unlike a night club or pub which is not safe for students and the elderly.
Also, friends and family can meet in a relaxed atmosphere. The bean bags represent the symbol of relaxation in the café, where people can sit back and relax in comfort.
Location
Placing the café in Carramar is a strategic plan, as Carramar is a busy area and there are limited cafes there, so it attracts more people in the region with little competition.
The café is close to recreational areas such as a Golf Club, so after golf people can gather and wind down after a game at the café.
Pricing
The beverages are cheap so families and students can afford the drinks that the café offers. The cheap drinks allow The Bean Bag Cafe to have a competitive advantage over other cafes in the area.
Seasonal Changes
In the summer people can come into the air-conditioned café and have a cold beverage. In the winter customers can enjoy the heated café with hot beverages and hot food.
Clothing Casualization
Gives workers the opportunity to wear what they wish to work and feel relaxed within their working space.
Weaknesses
Poor Brand Name
“The Bean Bag Café” might not be attractive to some customers. The name could be too long or hard to remember. Customers might find the name ‘too casual’ or not catchy. It is important for the business to provide a name that will suit their targeted audience.
Poor reputation
In the beginning of sales, it is important to build a stable and positive reputation. ‘Word of mouth’ will build reputation around the area and provide an increase in sales. A poor introduction and satisfactory customer service can result in poor reputation.
De-motivated staff
The Bean Bag café aims to hire a young age group of staff. They are most likely to be students, university students or young adults. This can result in the staff being tired and de-motivated to work the hours. They are not interested in customers and following regulations, this can be an on-going concern for the café.
Lack of innovation/marketing
The café needs to continue to grow. Poor marketing, introduction of no new products, sales incentives or advertising can lead to less profit. It is important to maximise as much advertising and anything that would attract the customers. The business would benefit from on-going innovation of the café. For example, new pictures, signs or chairs would up-lift popularity.
Skills shortage
Due to the young hired staff, there is a skills shortage. There would be a lot of training and mistakes occurring in the business. This can provide a low service production, waste of products and unhappy customers.
Prices
High prices can lead to less customers. It is important to adjust prices according to the customers who are visiting the café and the margin of income around the area. The prices should be marked accordingly with the product.
Poor quality
Poor quality of food and coffee can lead to less profit and no customers. A good coffee brand and fresh products need to used in order to gain a margin of profit. For example, the company would benefit from using Nespresso Coffee rather than the Black and Gold Company.
“The Bean Bag Café” might not be attractive to some customers. The name could be too long or hard to remember. Customers might find the name ‘too casual’ or not catchy. It is important for the business to provide a name that will suit their targeted audience.
Poor reputation
In the beginning of sales, it is important to build a stable and positive reputation. ‘Word of mouth’ will build reputation around the area and provide an increase in sales. A poor introduction and satisfactory customer service can result in poor reputation.
De-motivated staff
The Bean Bag café aims to hire a young age group of staff. They are most likely to be students, university students or young adults. This can result in the staff being tired and de-motivated to work the hours. They are not interested in customers and following regulations, this can be an on-going concern for the café.
Lack of innovation/marketing
The café needs to continue to grow. Poor marketing, introduction of no new products, sales incentives or advertising can lead to less profit. It is important to maximise as much advertising and anything that would attract the customers. The business would benefit from on-going innovation of the café. For example, new pictures, signs or chairs would up-lift popularity.
Skills shortage
Due to the young hired staff, there is a skills shortage. There would be a lot of training and mistakes occurring in the business. This can provide a low service production, waste of products and unhappy customers.
Prices
High prices can lead to less customers. It is important to adjust prices according to the customers who are visiting the café and the margin of income around the area. The prices should be marked accordingly with the product.
Poor quality
Poor quality of food and coffee can lead to less profit and no customers. A good coffee brand and fresh products need to used in order to gain a margin of profit. For example, the company would benefit from using Nespresso Coffee rather than the Black and Gold Company.
Opportunities
Climate
Coffee tends to progress and make profit during the colder days. During winter, customers are attracted to the warm hot chocolates and coffees. The Bean Bag café provides service for the hot summer days, by providing cold beverages.
Expansion of franchise
This refers to expanding The Bean Bag Café with other outlets. For example, a discounted hair cut with a purchase of a coffee and cake. This allows popularity and a catchy deal that entails a profit.
Location
The location of The Bean Bag Café is close to the shops, residents and schools. It is within an area that is easy accessible. The location works well with the targeted customers, Bean bag is expected to receive.
New demand
Coffee has always been an ongoing demand. However, in the recent future, coffee has been substantially in demand. The population are constantly tired and hard working, where coffee provides a great caffeine kick.
Social/ Lifestyle change
The social and lifestyle aspect of coffee is attracted to all ages. Coffee is the ‘peacemaker’ or the one that gathers everyone around to ‘catch up’. Families, friends, teenagers, mothers groups, business meetings are usually associated with a casual cup of coffee.
Demographics (Higher economic growth)
The demographics are based on the income around the area. The area is filled with high-income family owners. This allows the opportunity for Bean Bag café to increase their prices in ratio to their popularity and scare places of cafes around the area.
Coffee tends to progress and make profit during the colder days. During winter, customers are attracted to the warm hot chocolates and coffees. The Bean Bag café provides service for the hot summer days, by providing cold beverages.
Expansion of franchise
This refers to expanding The Bean Bag Café with other outlets. For example, a discounted hair cut with a purchase of a coffee and cake. This allows popularity and a catchy deal that entails a profit.
Location
The location of The Bean Bag Café is close to the shops, residents and schools. It is within an area that is easy accessible. The location works well with the targeted customers, Bean bag is expected to receive.
New demand
Coffee has always been an ongoing demand. However, in the recent future, coffee has been substantially in demand. The population are constantly tired and hard working, where coffee provides a great caffeine kick.
Social/ Lifestyle change
The social and lifestyle aspect of coffee is attracted to all ages. Coffee is the ‘peacemaker’ or the one that gathers everyone around to ‘catch up’. Families, friends, teenagers, mothers groups, business meetings are usually associated with a casual cup of coffee.
Demographics (Higher economic growth)
The demographics are based on the income around the area. The area is filled with high-income family owners. This allows the opportunity for Bean Bag café to increase their prices in ratio to their popularity and scare places of cafes around the area.
Threats
Occupational Health & Safety
There are on-going regulations introduced every year, in order to supply a healthy and safe environment. Small businesses find it hard to constantly keep updated and abide by the regulations and standards put forward by the governments.
Seasonal Fluctuation
The Bean Bag café heavily relies on holidays, seasons and events to bring in their profits. Certain parts of the year sometimes provide no profit or less profit. For example, school holidays would bring in less profit, as mothers don’t have free time anymore and need to stay at home to look after their kids. There would be no school rush after 3pm.
Insurance
Having no insurance can have problems, it ensures to protect the company and staff, as well as the customers. It is important for any small business to make sure their insurance covers all aspects.
Staff
There is a high demand for skilled works in society. It is hard to find baristas and catering staff that are available on full-time hours. The skilled workers are elder and are higher to pay. This allows cafés to struggle in hiring staff.
There are on-going regulations introduced every year, in order to supply a healthy and safe environment. Small businesses find it hard to constantly keep updated and abide by the regulations and standards put forward by the governments.
Seasonal Fluctuation
The Bean Bag café heavily relies on holidays, seasons and events to bring in their profits. Certain parts of the year sometimes provide no profit or less profit. For example, school holidays would bring in less profit, as mothers don’t have free time anymore and need to stay at home to look after their kids. There would be no school rush after 3pm.
Insurance
Having no insurance can have problems, it ensures to protect the company and staff, as well as the customers. It is important for any small business to make sure their insurance covers all aspects.
Staff
There is a high demand for skilled works in society. It is hard to find baristas and catering staff that are available on full-time hours. The skilled workers are elder and are higher to pay. This allows cafés to struggle in hiring staff.