Question : Write down an EXTERNAL ENVIRONMENT (PESTLE ANALYSIS) and SWOT Analysis of The Daily Grind Coffee Shop based on the information below

 

BUSINESS OVERVIEW

 

The Daily Grind Coffee Shop is well-known for its high-quality coffee, cozy atmosphere, and great customer service. It has been a cherished neighborhood meeting spot and a go-to destination for coffee connoisseurs since its inauguration in 2023.

The coffee shop is proud to serve a wide range of freshly brewed coffees made from top-notch coffee beans. It serves espresso-based drinks, pour-over coffees, cold brews, and flavored lattes, among other specialty coffee beverages. The Daily Grind also accommodates to customers with requested dietary preferences, including dairy-free and vegan alternatives, as well as a variety of alternative milk options.

In addition to coffee varieties, The Daily Grind offers a variety of freshly baked pastries, muffins, sandwiches, and snacks. The menu has been meticulously designed to enhance the coffee experience while also catering to the different tastes and preferences of its consumers.

MISSION STATEMENT

Our mission at The Daily Grind Coffee Shop is to provide a welcoming and exceptional coffee experience for our customers.

We are committed to serving the highest quality coffee, creating a cozy atmosphere, and delivering outstanding customer service.

We aim to be a cherished gathering place for our community, fostering connections and offering a moment of respite amid busy lives. Through our passion for coffee, dedication to sustainability, and active community engagement, we strive to make a positive impact on the lives of our customers and the local community we serve.

VISION STATEMENT

Our vision for The Daily Grind Coffee Shop is to be the heart and soul of our community, a place where individuals come to find joy, inspiration, and a sense of belonging. 

We envision a warm and inviting space that fosters meaningful connections and cultivates a vibrant coffee culture. 

Our vision extends beyond serving exceptional coffee; we strive to create an experience that engages all the senses, from the aroma of freshly brewed coffee to the comfortable ambiance that embraces our customers. 

We are committed to sustainability, sourcing ethically and promoting eco-friendly practices to protect our planet. As we grow, our vision is to expand our positive impact, supporting local initiatives, empowering our employees, and becoming a catalyst for positive change in the coffee industry. 

With each cup of coffee we serve, we aspire to enrich lives, foster community, and create lasting memories for everyone who walks through our doors.

GOALS & OBJECTIVES OF THE BUSINESS

1. Our Goals for the first-year.

Profitability: In the first year, one of our primary goal is to establish a profitable business that generates sustainable income. That includes setting prices, careful financial planning, controlling costs, and managing resources effectively.

Customer Satisfaction: In the first year our goal is to provide a pleasant and satisfying experience for customers. This involves offering a welcoming atmosphere, serving high quality of coffee and other beverages, ensuring excellent customer service and, creating a positive brand image.

1. Objectives related to the first-year goals.

Financial Objectives: Determine the target revenue and profit margins to achieve sustainable profitability.

 

Customer Satisfaction Objectives: Create a welcoming and comfortable ambiance that encourages customers to stay longer and offer a diverse menu of high-quality coffees and beverages to cater to different preferences.

 

1. Goals for the first 5 years.

Sustainable Growth: For over five years in the industry The Daily Grind aim to achieve consistent and sustainable growth in revenue, customer base and profitability.

 

Brand Recognition and Reputation: For over five years in the industry, our goal is to establish a strong brand presence and a positive reputation in the local community. To become a well-known and respected coffee shop known for its quality products excellent customer service, and unique atmosphere.

 

1. Objectives related for the first 5-year goals.

Revenue and Profit Growth: Implement effective pricing strategies to maximize revenue while maintaining competitive pricing in the market.

 

Customer Acquisition and Retention: Implement customer retention programs such as loyalty programs and personalized promotions to encourage repeat customers.

 

LOCATION OF YOUR BUSINESS

Our chosen location is at Queen Street West between Simcoe Street and Bathurst Street (Toronto, Ontario). 

We choose this location because this neighborhood is popular among young professionals, artists, and students. It has a thriving cafe scene and attracts a diverse crowd, making it a potential hotspot for our "The Daily Grind" coffee shop. Queen West. (n.d.). Visit Toronto | Destination Toronto.

SERVICE OFFERING REVIEW

The Daily Grind Coffee Shop will focus on retail which is the sale of goods which are the different kinds of coffee drinks we make and pastries which are freshly made.

It primarily focuses on the high-quality production of the cream that comes out from the top-notch coffee beans that we make. Aside from that, we also offer freshly made and baked pastries alongside our delicious and high-quality produced coffee drinks and non-caffeinated drinks.

Being a coffee lover and everyday customer, we offer loyalty discounts. For every drink they buy, 5 points are credited to their loyalty account. Accumulated points will be converted into cash which can be used to buy a drink or pastry in the shop.

There is more to what we offer. We give out gift specials for those celebrating their memorable moments in life like birthdays, wedding anniversaries, graduating with flying colors, and many more.          

Lastly, we offer special workspaces for students and employees for them to have a sip of caffeine and non-caffeinated drinks while continuing their workloads and deadlines. Moreover, a special pet friendly hangout room is also provided for those who are accompanied by pets.

Our Coffee Shop focuses on the customer's satisfaction that is why we make sure that the customer service is well given and that the goods and services that we offer are beyond the customer's expectation. Making sure that the goods are well produced, served, and delivered are one of the utmost concerns of the business. Going an extra mile is the key to every success. We make sure that the employees of The Daily Grind are not just well trained on their daily job routine but also to reach out and go an extra mile for the customers.

TARGET MARKET 

The Daily Grind Coffee Shop's market segments are: 

• Students
• Employees
• Pet-lovers who are at the same time coffee drinkers.

Students and employees have similarities in terms of workloads and one way to make them awake, active, and making those neurons work is a magic sip of caffeine in their drinks. Meanwhile, pet lovers are also one of our target markets because not all coffee shops allow pets in their premises so we have provided a hangout room specifically for pet lovers so that they can bring their pets while drinking coffee and non-caffeinated drinks.

 

Image transcription text

FREQUENCY OF BEVERAGE ORDERS BY SEGMENT % WHO ORDER ALWAYS OR MOST TIMES WHEN VISITING Coffee cafes 57% 57%
58% Compared to mid 2020, Fast-food restaurants 53% 59% 51% consumers are visiting casual-dining, fast- Casual-dining restaurants 42%
43% 41% casual, family-style and beverage/snack shops Fast-casual restaurants 40% 49% 36% more frequently for nonalcohol d... 

Source: Coffee Association of Canada 

 

The Daily Grind Coffee Shop only offers the best goods and services. The customers can expect only the best freshly brewed and freshly made and baked pastries from our coffee shop. We are very particular in the brewing time of our coffee beans. Every time we brew, it only lasts for an hour to sustain its freshness. The customer can expect that we only serve fresh coffee otherwise, it's on the house but we doubt that.

 

Our Coffee Shop makes sure that the customer is only given the needed amount of caffeine intake in their body and as per request of the customer.

 

According to the US Food and Drug Administration, about 400 milligrams or four to five cups of coffee is the amount that a healthy adult can take. However, it still depends on the body and health type of the person. (US FDA, 2018)

 

The Daily Grind Coffee Shop cares about the health and wellness of the customers that is why we can only serve the amount of caffeinated drinks to the maximum level that the body can take.
 

FREQUENCY OF BEVERAGE ORDERS BY SEGMENT Compared to mid 2020, consumers are visiting casual-dining, fast- casual, family-style and beverage/snack shops more frequently for nonalcohol drink purchases Base: 1,085 consumers who have purchased a beverage from foodservice in the past month Q: How often do you order nonalcohol beverages (excluding tap water) when you order from the following foodservice locations? % WHO ORDER ALWAYS OR MOST TIMES WHEN VISITING Coffee cafes 57% Fast-food restaurants 53% 57% 59% Casual-dining restaurants 42% 43% 41% Fast-casual restaurants 40% 49% 36% Family-style restaurants 40% 43% 39% Beverage/snack shops 31% 42% 26% Convenience-store or gas station prepared-foods areas 25% 37% 19% Grocery store prepared-foods areas 23% 34% 18% Overall 18-34 35+ 58% 51%