Competition for a Coffee Shop - Admission/Application Essay Example

Competition for a Coffee Shop Quick Service Restaurant I often visit a small coffee shop that is located at a busy and strategic position in my town. The main business that would be competitive to this small shop is a quick service restaurant. This business idea involves the production and service of different established snacks as well as a number of non alcoholic beverages. Among the beverages that would be served coffee will be one of them in order to offer some competition to the small coffee shop. The most important strategy in establishing a competitive business is brand recognition. It brings about customer recognition and takes time since it requires persistent marketing strategies and delivery of quality products. It is of value since it helps in attracting other customers in the market. Additionally, strategy is another important element. It can be achieved by diversifying the meals provided to attract a wide customer base hence increase sales. It may also involve purchasing already existent business under the same name. It is also important to make considerations about operating of different types of quick service restaurants within the same space. This helps to minimize the costs of operation expenses. Consider that purchasing of a company with a logo may require a complete change and the strong sales may not be realized immediately. Seeking other alternatives such as co-branding as a result of enhanced competition for established products is also helpful. It is likely to offer some of the advantages of multi-branding and with minimal risks. The other most important step to increase sales and profits is the need to offer value to customers. In this relation, market research on what the customer values is important. With this, it will be highly necessary to be sensitive with the prices, in addition to enhancing service speed, cleanliness, quality of food and location. Ultimately, it will be a wise idea top franchise and multi-brand (Deeb, 2013). Establishing a New Business or the Already Existing Coffee shop Most of the time, it is thought that purchasing an already existing business has got more advantages that having to start a new business. Although this is the case, a number of strategies have to be put in mind in case an individual decides to start a new business from scratch. This will ensure that the business becomes successful and is not faced with the possibilities of failing both in the short-term and long-term. I thus prefer to start a new business since I intend to start some specialized brands of foods and beverages. It is also because the amount of money needed for purchase is more than for initial establishment. In order to offer more competition, it would be a proper idea to open another business facility close to the already existing coffee shop. This idea would conclude the offering of other products besides coffee unlike it is exclusively done at the coffee shop. It would ensure that the new establishment builds its own customer base from where it can maintain and sustain ts own customers. At times, most customers prefer competition since they prefer newer and smaller establishments that are independent and with unique and different services from its competitors. These include a cozy environment and relatively cheaper prices that is coffee in this case. I have done sufficient research on how the business operates and the possible weaknesses that may have to encounter in the course of its operations. Additionally, I have found out the different ways with which such weaknesses can be resolved. It would not be appropriate to purchase the already existing shop which already possesses its own customer base. It is because customers would expect the same quality of products as well as services from the new established. This would mean that so many things are done in almost the same manner as the initial establishment. It is because of this that the establishment of a new enterprise would be a good idea since it will provide an opportunity to develop innovative products from the beginning. It will also provide the freedom to hire handpicked personnel as opposed to the retention of some of the staff members from the already existing business premise for consistency. Thus, it will make the owner more independent as it will reduce the dependency on the former owner, the employees and the vendors. With this, one will not have to deal with the past problems and challenges of the business that include poor management and troublesome employees. Although the new business will require expertise in terms of financing, cash flow and infrastructure, it will be appropriate since I possess skills in financial management from my course as well as experience in the food and beverage industry from my previous employment. With this, I will be able to employ professionals in the other fields of the business. Thus, they will be able to contribute to the smooth operation of the business. In addition, it is important to build a financial position from the start and establishing a market through unique operational strategies and policies, which will be specifically written and structure. As such, the business will be an example of a good competitive enterprise and a source of satisfaction. As long as the shop will be positioned at close proximity with the already existing small coffee shop, it will have been strategically placed since the area is busy, mostly densely populated and has the potential customers always available (Hill, 2013). The Most Appropriate Form of Ownership Since in the establishment of a new business less funds are needed, it will be important to start a partnership business. It is mainly because in spite of the less amounts of financial capital needed, banks are not usually willing to provide loans on business that are yet to be started and that are only in the form of projections. Usually, they provide loans for already existing businesses that already possess track records. As such, in a partnership business each member will have a chance to contribute small amounts, which when put together will be sufficient in starting up the business. In addition, this is an advantage when starting a new business, which does not have quick and immediate financial payoff. Instead, at one time or the other, the owner is expected to inject in more funds in the form of cash infusion to support the business. Moreover, with a new business, it is not easy to establish its expected traffic beforehand. In this sense, therefore, cash flow is not immediate and the owners will have to wait for a salary for a number of years. With this, the partners in the business will be able to have a chance to contribute some money into the business until the profits begins to stream in. With this, the burden is not only carried by a single individual. It is also in the case of the amount of time that is required for the start up since it will be equally divided between the members. Thus, together, members will be able to take the huge sacrifice in terms of time, effort and money without much challenges and stress (Madura, 2006). In addition, with the starting of a business, there are other extra costs that include those of hiring entirely new employees, developing a customer base and developing a new product. There is also no guarantee that the business will succeed and it also bears a lot of financial risks. As such, it contains more risks than the acquisition of an already existing business. One of the advantages of a partnership business is that both profits and losses are equally shared. As such, in case of any losses or the failing of the business, then as one of the owners, I will not have to go through the individual handling of the losses. A partnership business will also contribute significantly to the sharing of ideas as well as skills and expertise in different areas that may be helpful in starting up and sustenance of the new business. Quick Service Restaurant-Business Plan This is a business plan for a restaurant near the Florida Medical School and Hospital. It will mainly serve a wide variety of fast foods as well as non alcoholic beverages mainly for middle income groups. At this location, there is a market segment that will highly appreciate local food recipes in a fast food restaurant. Market Segment In the Florida shopping complex, the market segment can be classified as; Exotic since they include top business people, executives, as well as doctors who are willing to spend $500 or more on food. They come in small groups to entertain social networks. They need excellent quality, taste, and exquisite environment with personalized services. Quick and convenient who can spend $300 on food. They work in groups and prefer quick served meals at affordable prices. The environment and the freshness of food is of great importance. Bargainers can afford $100 for food and are keen on prices. They pay less attention to environment and quality. They include students, office workers and professionals of white collar jobs. They require local food and local taste. Target market The target market is mostly the quick and convenient. Mostly, the coffee shop sells coffee to the exotic group. The other restaurants around also cater for the other groups. We discovered that is is only this group that was not well taken care of. As much as they are not as many as the other groups, they are still present around this region hence the need to serve them. Customer Needs Most of the other restaurants are either too pricey or lack sitting space. At times they do not offer what is required. Positioning The area is highly strategic as it is busy. We hope to fulfill customer needs in the fast food industry. Important Success Factors Convenient and approachable site Adequate parking space Courtesy services. Objectives Make profits Acquire customers. Maintain customer satisfaction. Plan of Production We will have a sitting capacity of 28 and aim to serve 20,000 customers annually. Food will be served in rooms that are comfortable, well lit and with a controlled environment. References Deeb, C. (2013). What Is a Multi-Brand Strategy in the Quick Service Industry?Demand Media, Chron. Retrieved 15 Nov. 2013 from http://smallbusiness.chron.com/multibrand strategy-quick-service-industry-33916.html Hill, B. (2013). Buying an Existing Business Versus Starting a Business. Demand Media, Chron. Retrieved 15 Nov. 2013 from http://smallbusiness.chron.com/buying-existing-business-versus-starting-business-2477.html Madura, J. (2006). Introduction to business. Mason, OH: Thompson/South-Western. Read More