The Viability of Coffee Shop in Saudi Arabia - Coursework Example

Entrepreneurship Assignment (MAN-40018) Acknowledgements I would like to acknowledge the management of java café, star bucks for giving rigorous support and ensuring that this report was a success. I will also wish to thank my professor in this unit for giving all the clarifications that I deemed necessary during the investigations. Abstract The purpose of this research is to find the viability of coffee shop in Saudi Arabia. The report will investigate the market level of competition and what makes the coffee shops to be catchy in the eyes of potential customers. Table of content 1. Introduction………………………………………………………………… 1.1. Purpose…………………………………………………………………. 1.2. Scope……………………………………………………………………. 1.3. Method…………………………………………………………………… 1.4. Limitation………………………………………………………………… 1.5. Assumption……………………………………………………………….. 2. Methodology…………………………………………………………………. 2.1. Visual instrumentation…………………………………………………… 2.2. Observation……………………………………………………………… 2.3. Surveys…………………………………………………………………… 2.4. Interview………………………………………………………………… 3. Findings……………………………………………………………………… 3.1. Findings of Java café…………………………………………………… 3.2. Findings of Starbucks………………………………………………….. 3.3. Findings of caribou coffee…………………………………………….. 4. Discussion…………………………………………………………………… 5. Conclusion and recommendations………………………………………… 5.1. Conclusion………………………………………………………………. 5.2. Recommendation and implementation………………………………… Coffee Shop in Saudi Arabia 1. Introduction 1.1. Purpose The purpose of this report was to analyze the viability of coffee shop business in Saudi Arabia and if it can cope with established cafes such as Java. 1.2. Scope While investigating the sustainability of the café it was of essence to consider the market, competition and profitability of the business. 1.3. Method The information used in this report was gathered from consulting established coffees shops’ employees, managers and the public. There were also references from business journals and entrepreneur journal. 1.4. Limitation There were a few limitations that were experienced during the investigation process, they included; Java café didn’t give a response regarding the profit they make coffee shops are not common in Saudi Arabia Respondents of the interview might find difficulty with words such as cappuccino, espresso etc. The coffee shops seemed to be similar service offering. 1.5. Assumption It was assumed that Saudi Arabia has been westernized, coffee shop are something that are most dominant in the western countries. And the coffee shop business assumed that the country has been westernized despite the fact that most of the locals practice strict Islam, making them to be a bit more conservative. It was also assumed that “Islam offers a disciplined, technology friendly, proud, non-tribal, and nonlocal, international identity that stands opposed to the ‘rape of the world’ by multi-national corporations and interests that serve them.” (Behrend, cited in Ponniah, 2005, p.15). 2. Methodology A mixed-design methodology was used in this report; the techniques used included observation, interview, visual instrumentation and survey. This choice was due to the fact that it is important to note what people were doing, thinking, behaving, as well as the static and fixed conditions (Dewey and Bentley, 1949). The study took place in three coffee shops located in Riyadh, they included, Caribou Coffee, Java café and Starbucks. The choice of the coffee shops was not random rather it was a calculated move. Each coffee shop was unique in its own ways. 2.1. Visual instrumentation The first method of data collection regarding this report was on the information on the physical characteristics of the coffees shops including the location of the coffee shop, and the architectural attributes of each shop. This was supposed to investigate on how my coffee shop will be designed to surpass this attributes. The location was very important as a strategically placed business will attract a lot of customers. The exterior appearance as well as interior of the cafes was documented, this included features such as lighting, views to the outside, furniture type, parking availability and so on. 2.2. Observation Observations were used solely for the purpose of understanding of the coffee shops function and proceeding of activities in the shop. The coffee shop was given an observation of 40minutes each daily for one week. The timing was random. The purpose of this was supposed to give an overview of the influx of customers. 2.3. Surveys There were about 51 surveys that were conducted in the three selected coffee shop as part of data collection for this report. The surveys were not random as not all respondents were potentially friendly; this prompted one to be prudent while selecting the respondents. The aim of the survey was to establish what type of mixed coffee was most preferred, is it cappuccino, Espresso, latte and so forth. During the survey the management gave me full consent and support. The survey had two parts one that included open-ended questions and close-ended questions. The first part asked why they prefer that particular brand and the dessert that they chose to accompany the coffee. The second part asked why they preferred the coffee shop to another. This included questions regarding the location, the décor of the café etc. 2.4. Interview In order to grasp the coffee shop environment and the meaning these coffee shop held for clienteles, I conducted several interviews. 12 interviews that comprised of the customers and 3 interviews that involved the management were conducted. Each interview lasted approximately 15 minutes. The interview took place inside the café, on certain cases I had to purchase desserts for customers to make them give honest views as well as motivate them to take their time to be interviewed. 3. Findings Clienteles’ ideal shop n Mean S.D (standard deviation) Cleanliness 51 3.49 .635 Appealing aroma 51 3.26 .717 Adequate lighting 51 3.23 .725 Comfortable furniture 51 3.14 .676 Exterior view 51 3.10 .868 Appealing Acoustics 51 2.96 .621 Appealing Music 51 2.96 .739 Appealing décor 51 2.95 .757 Appealing colors 51 2.71 .818 Visual appealing 51 2.63 .822 (1=lowest rating; 4=highest rating) The findings of this report will be outlined according to the three coffee shops that were visited. This is because all the shops were equal resources in terms of money, time and dedication. 3.1. Findings of Java cafe The influx of customers was pleasing at any chosen time It’s a large international chain coffee shop The coffee shop is strategically placed The lighting of the coffee shop has a cool ambiance Tourist really prefer the coffee shop Most of the customers take is cappuccino The seating arrangement can cater for privacy, thus very preferred by couples 3.2. Findings of Starbucks Most of the customers like the lightings of the café (green) It is also an international chain coffee shop Its selling point mostly is the name, it is almost universally done The café hade more clienteles than java café The café had a variety of desserts as compared to any other café considered in the investigation It was very known by foreigners especially Americans and Britain’s Received a lot of tourists 3.3. Findings of Caribou Coffee The shop is locally owned The café had local desserts mostly It was not as popular as Java and Starbucks Didn’t receive a lot of foreigners as compared to the other two The furniture were not as sophisticated as the ones in Java and Starbucks The place was not strategic as compared to the other two 4. Discussion Respondents listed the physical appearance of the coffee shop as the most aspect they consider as an ideal coffee shop. They said the exterior gave them an idea of what the interior looks like. If the interior matches the exterior most said that it they will not hesitate but be loyal to the coffee shop. Some also quoted convenience and they said that the ideal coffee shop should be convenient for them. They chose Java and Starbucks due to the location. They also considered furniture, so if the furniture and fittings was pleasing they will definitely choose the coffee shop. The desserts offered were also a very key factor while choosing the shop. Most of them considered Java because of the variety it had in terms of desserts. The common brands were on sale in these three coffee shops and the patrons had no experience of new mixes of coffee. Higher sales were made in cappuccino, Latte and Espresso. The dessert was very wanting as the Asian desserts lacked in Java and Starbucks. 5. Conclusion and recommendations 5.1. Conclusion The physical appearance of the coffee shop is very important as it is responsible for attracting new customers to the coffee shop. It is also of essence to consider the location of the coffee shop. A strategic place somewhere it can be said that it caters or acts as a social place. This is evident in places where there are malls and the café has located itself there. The lighting in the coffee shop is very as a lot of dating people tend to visit the shops. 5.2. Recommendation and implementation The findings and conclusion of this report support the following conclusion that will enhance that the coffee shop that is going to be established in Saudi Arabia will be a success. I. The exterior appearance of the coffee shop should be attractive enough; this will enhance new customers to the café. II. The furniture in the café should be comfortable enough as most people tend to came to the café for relaxation purposes III. Incorporating local desserts in the café will make sure that the locals don’t view the coffee shop as “something of western” IV. Lighting is also very crucial, in the coffee shop. This should be guided by the theme color of the coffee shop V. A different mix of the coffee should be offered as this will ensure that the café offers something unique from other coffee shops. VI. A proper strategic position should be considered VII. 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