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    Struggling Cafe

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    tuan
    Your teacher recently opened a cafe called The Trainee Club Cafe and is worried about stagnating profits despite growing revenues. You agree to analyze the cafe's data and make recommendations. The cafe has two product lines, beverages and sides, and is located near offices. While the beverage market is generally stagnant, food sales have been growing at other cafes by innovating menus. The cafe is busy at lunch and evenings and is popular for its sides. Two new made-to-order items were introduced in 2016 - sweet potato fries and pulled pork burgers - but profits remain stagnant.

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    Struggling Cafe

    Uploaded by

    tuan
    22 views3 pages
    Your teacher recently opened a cafe called The Trainee Club Cafe and is worried about stagnating profits despite growing revenues. You agree to analyze the cafe's data and make recommendations. The cafe has two product lines, beverages and sides, and is located near offices. While the beverage market is generally stagnant, food sales have been growing at other cafes by innovating menus. The cafe is busy at lunch and evenings and is popular for its sides. Two new made-to-order items were introduced in 2016 - sweet potato fries and pulled pork burgers - but profits remain stagnant.

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    Your teacher recently opened a cafe called The Trainee Club Cafe and is worried about stagnating profits despite growing revenues. You agree to analyze the cafe's data and make recommendations. The cafe has two product lines, beverages and sides, and is located near offices. While the beverage market is generally stagnant, food sales have been growing at other cafes by innovating menus. The cafe is busy at lunch and evenings and is popular for its sides. Two new made-to-order items were introduced in 2016 - sweet potato fries and pulled pork burgers - but profits remain stagnant.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views3 pages

    Struggling Cafe

    Uploaded by

    tuan
    Your teacher recently opened a cafe called The Trainee Club Cafe and is worried about stagnating profits despite growing revenues. You agree to analyze the cafe's data and make recommendations. The cafe has two product lines, beverages and sides, and is located near offices. While the beverage market is generally stagnant, food sales have been growing at other cafes by innovating menus. The cafe is busy at lunch and evenings and is popular for its sides. Two new made-to-order items were introduced in 2016 - sweet potato fries and pulled pork burgers - but profits remain stagnant.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    You are on page 1of 3

    Your teacher just opened his restaurant in the neighborhood by the name The Trainee Club

    Cafe. You are having coffee with him one day at the Cafe and he shares that he is worried
    about his business. The profits are stagnating despite the growth in overall revenues. He asks
    for your advice as he is aware that you have learnt a lot from The Management Trainee
    Preparation Toolkit.
    You agree to look at his collected data and give him some recommendation to overcome
    the stagnant profitability and make more money.
    Information on The Trainee Club Coffee
    The Cafe is running two product lines: Beverages and Sides. Beverages include coffee, tea
    and other cold beverages. Sides include both savory items such as sandwiches, burgers and
    baked items as well as baked goods such as cakes, croissants etc.

    The Cafe is located on a busy street close to several large offices and commercial complexes.
    Your teacher had spoken to a few of his friends who run similar businesses in other parts of
    the country and has gathered the following industry information:

    “The market for beverages is largely stagnant in a location unless new developments come
    up in the vicinity. It is a seasonal business with peaks during summers and winters, but
    stagnant trend overall. However, the market for sides (freshly prepared food and baked
    goods) has seen an increasing trend in other similar joints. The key is to keep innovating the
    menu. The largest coffee chain – F Cafe has had a store in the area for the last 5 years and
    The Trainee Club Cafe had lost its business initially when the store opened. However, now
    both the Cafes have their own customers. There are no other direct competitors”

    The Trainee Club Cafe has its peak traffic during the lunch hours (12:30 - 2:30 pm) and
    evening hours (5pm - 6:30 pm). It is popular for its side menu.

    Regarding the menu, product mix has largely remained the same within the sides segment.
    All the items on the side menu including the sandwiches are prepared in advance and heated
    on request after an order has been placed.

    However, two new 'made to order' products have been introduced in 2016: sweet potato fries
    and pulled pork burgers. The sweet potato fries are made in batches and are only available in
    the evening. The pulled pork burgers are custom made after an order has been placed and are
    available only during lunch hours.

    The cost of material/labor has not changed in the last 3 years.

    Bellows are some further details about The Trainee Club Cafe. Please take a look.
    Appendix

    Table 1: Financial Data of The Trainee Club Coffee

    Table 2: Key Financial Metrics of The Trainee Club Coffee


    Table 3: Pulled Pork Burger financial analysis

    Table 4: Sweet Potato fries financial analysis

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