Entrepreneurship in action 2.1 Welsh-based company Coffee #1 beats big boys to award It was the growing coffee shop culture in shows like Friends and Frasier that convinced him to quit invest- ment banking for cappuccinos and muffins. Now, a coffee chain founded 10 years ago by a Welsh entrepreneur, has been named the best in Britain, beating global competitors like Costa at the Caf Society Awards in London. The chain, which was founded in Cardiff [in Wales] by James Shapland in 2000, now has 12 branches across South Wales and South-West England. And Mr Shapland said last night the key to the firm's success is limiting itself to one new shop a year. As a chain, we try not to grow too quickly or people become anonymous," said Mr Shapland, who set up the business with chair- man, David Jones, a former Microsoft director from Bargoed [in Wales] who now lives in Seattle, a city at the forefront of the global coffee movement. "This can happen with bigger companies. Some global chains open a new store every six to seven days, which means they do extremely well in terms of their profits... But we try to make things a little more intimate and we try to open a shop once a year. It's growing but we are people who believe that our chains, although small and local, will be recognised with our name out there... The likes of Costa and Starbucks are so powerful with their positions on the high street and their marketing resources, that to be able to be recognised on a simple local level is great. What we are trying to do is offer great coffee and produce and great service. It's brilliant that an independent judge has come in and recognised our standards. Coffee #1 beat the likes of Costa Coffee, Caff Gusto, Boston Tea Party and Soho Coffee Company to the award, which recognises its innovation, stan- dards and customer satisfaction. It follows success at the Beverage Service Association awards, where it also picked up top prize. Mr Shapland said his staff play a key role in mak- ing the chain a success. We are very lucky that we have a sound mix of great people whom we try to look after, he said. Further, 'I think obviously the core product needs to stand up. We spend an awful lot of time developing a good cup of coffee and we make sure you can taste the coffee, whereas some competitors offer oversized cups which mean you cannot taste the coffee... We want people to feel like they have got the value out of their 2 they might spend on coffee. He added: "We offer warm and friendly customer service and we have an apprecia- tion of customers and we don't take them for granted... We recognise the need to appreciate them and try to make people feel special when they come in - it's easy to become too manufactured and sterile... Customer loyalty is important to us. We like to offer a nice, warm cosy environment where you can sit on comfy sofas and read a good book or have a chat with your friends... It's easy to have a cold feel in some of the competitors' shops and they can have a dirtiness to them... We have clean tables and toilets. I think these factors make for a good experience. The company has been growing since 2000 and has featured in the Wales Fast Growth 50 project, an annual search for the 50 fastest growing companies, for three of the past four years. Source: J. McWatt, The Western Mail, 6 March 2010. Question 1 What distinguishes Coffee#1 from other competitors? highlight and discuss 4 differences