Sylvia’s Bar is a bar and night club, situated in High Street in Birmingham. It was established by Sylvia Jones in 1986 as a fashionable wine and cocktail bar targeting mainly at the customer segment who working in local banks. …
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It did good business, attracting high volume of customers and earning sizable profits from its beginning in the late 1980s till the mid-2000s. From the late of 2000s, its profits started to decline, as the flow of customers reduced to abysmal levels, even close the bar for few days of the week. The response from the customers dwindled because of Sylvia’s long-standing strategies of offering products and services at high cost, playing outdated music and also due to the advent of more modern bars in the neighbourhood. This report will focus on the Sylvia’s Bar and will discuss its current situation or problems, coming up with recommendations for it to manage those problems. Cost and menu High cost in the sense, Sylvia’s was established as a high class wine and cocktail bar, aimed at the customers, who constitute the top end of the market. Because of this focus on a particular target segment, the price of the drinks and the food was on the higher side. Although Sylvia’s Bar wanted to focus more on these high segment, who are able to pay the high prices. In the fact, with this pricing restrict its customer base. Due to these high pricing, other segments of the wide prospective customer base look for other options that the bar has to throw ingredients by the reduction of the customers, and this was validated by Sylvia’s waitress, Kate. “We throw too much food away, I’m not sure that the customers in town are looking for this kind of fancy stuff”. ...
(Piron 2000). (Vickers and Renand 2003). So, by setting price on the basis of industry standards, and equal or less than its competitors, Sylvia’s Bar can expand its customer segment. Even while bringing in more customers, care should be taken not to compromise on the quality. Staffing The insistence of using only classically trained cocktail bar staff, who have completed a course in bar work at South Birmingham College, negatively impacts the finances of the Sylvia’s Bar. As these particular staff demand payment, which are double the ones paid to the casual bar workers, Sylvia has to allocate a sizable financial resources for the salary of these staffs, which further eats into their income. As the customers do not particularly insist on qualified employees from a particular academic institution and may not even know that fact, it is not compulsory for Sylvia’s Bar to recruit only them. Instead, they can recruit skilled and enterprising casual employees and importantly train them according to the job needs. (Mattila 1999). Training programs may not cost sizably, and on the other hand, the trained casual labourers can be paid only half of the salary paid to the other set of employees, thus saving crucial finances for the firm. (Kerfoot, Davies & Ward 2003). Sylvia’s bar also faced certain employee centric problems. Firstly, the employees had to wear a particular set of uniforms, and that according to certain employees was also very outdated. Barman Paul, 32 had this to say about it, “These uniforms are so dated and formal. I feel like I’m working in a church not a bar!” Importantly, this outdated feel of the uniforms would also negatively reflect among the customers, who might want to see employees clad in
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Center of discussion in this paper is Replay Sports Bar, a new start-up business with the aim to become the leading bar that offers an environment where sports lovers can enjoy watching games along with delicious food. The company will be first opening its branch in London and then it has planned to expand its business in other parts of United Kingdom and then to other European countries.
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The bar came into being in the year 1986 and deals with fashionable wine as well as cocktails targeting the local bank workers. It has been noticed that during initial days the turnover of the company was quite high. However, in the recent times the company’s sales have declined eventually and the profits have also dropped drastically.
The bar in the initial stages focused mainly on the bank owners offering them wine and cocktail and earned a lot of reputation in a limited period from its starting thereby also gained on profits. However the bar and night club in recent times is found to trip down from its past position on account of earning losses and this fact had made the outlet also lose on its past popularity.
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