Question
Question from GEB4522 - Data Driven Decision Making - Prepare a Problem Two-Pager for The Crazy Caf using all required elements: symptoms, causes, stakeholders, success
Question from GEB4522 - Data Driven Decision Making - Prepare a Problem Two-Pager for The Crazy Caf using all required elements: symptoms, causes, stakeholders, success criteria, constraints, and assumptions.
Bruce recently purchased The Crazy Caf. He readily admits that he is an unlikely manager since he has very little experience in the hospitality industry. A few years ago he graduated with a bachelors degree in psychology. While going to school, he frequented several coffee shops that served as great study & meeting places. Virtually each street had its own coffee shop; sometimes several of them existed side by side. Each shop allowed its patrons to relax and socialize with friends or simply watch the world go by. It seemed that time was not important to patrons of these establishments, since nobody was in a hurry. The Crazy Caf is located on the ground floor of a large residential apartment complex in Winter Park, FL and close to several important large office buildings. Also in the locality are the campus of a private business school, which accepts its quota of international students, and some international secondary schools. The ground floor of the apartment block includes Bruces welldesigned coffee shop which consists of the customer area, service area together with glass display counters, wash rooms, kitchen and storage space area. There is also considerable frontage where patrons can sit outside when the weather permits. In total, the coffee shop has space for about 50 customers. Its operating hours are from 8am to 9pm, seven days a week, 365 days a year. The menu, printed on recycled paper, includes a variety of competitively priced coffees espresso, cappuccino, latte and mocha teas and soft drinks. It provides breakfast (muffins, toast etc.), lunch (freshly made sandwiches to order, wraps, salads, pies etc.) and evening food (tiramisu, chocolate and other cakes). There is significant competition. For example, the ground floor of the apartment block also contains two similar enterprises, one of which is an Italian-style restaurant and the other an ice cream caf both of which have a robust menu and a wider product range. The local presence of competition has resulted in lower than expected sales growth in the two years of Bruces management and Bruce is hesitant on any price increases; Bruces prices are similar to most other outlets in the area. However, Bruce does not currently have a loyalty/rewards discount program and isnt sure if its feasible. Bruces limited business experience, which is from an employee rather than a managerial perspective, has taught him that customer loyalty is the most important ingredient for business success. Thus, while on the premises, Bruce is always available to say Hi to his customers and encourages his staff to do likewise. The Crazy Cafe is an intimate establishment. Daily papers, ample magazines and books are provided, since Bruce wants his coffee shop to be a place where customers can be casual and relax on the sofas and soft chairs provided. There is no piped music playing in the background, nor are there live performances, as this facilitates what he terms quiet whispers to take place. The amount of take-out business is negligible. He provides a good quality of product and customer service and this includes providing free fruit and biscuits in the afternoon. In addition, two full-time employees work in the Caf but always complain about needing additional help on the weekends. There are also a few part time employees but no one can agree on a schedule that everyone thinks is fair. The Caf does have an employee family discount (10%) but its rarely used. In fact, Bruce has often witnessed his two full time employee hook up family and friends with free food and drinks. Bruce is hesitant on bringing it up because he knows his full timers work hard and, as such, he is willing to look away. Lately though, it seems there have been more frequent visits from his employees friends and the Cafs sales dont reflect the added traffic. Bruce considered that his business should be performing better, but he knew there were some positive aspects. Customer complaints were the exception rather than the rule, although Bruce realized that dissatisfied customers rarely complain directly to the manager or to employees. Bruce believed that properly managed coffee shops would always survive and prosper, and he accepted the responsibility that he was now the leader who was needed to provide direction for his business. He was confident that the employees would support his initiatives especially if rewards for successful performance were offered. There were so many things for him to consider that it was difficult to decide where to start. Therefore, in early January he attended a short Executive Education course delivered by the local business school. His lecturers persuaded him that a logical decision-making sequence would be to identify the coffee shops current situation and then decide on an appropriate future direction and a means for its attainment. In addition, he would need to develop some appropriate measures to help drive business performance, since one lecturer reminded seminar participants that the bottom line belongs down at the bottom for a reason. Far above it, and of much greater importance, are a number of significant activities whose successful performance is required to generate adequate financial returns.
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