CAJUN TOWN CAFÉ ANALYSISConsultants: Younes Aitouazdi Enosadeba Osazuwa Marissa Elizondo Felicia Irving Maria Antelo
INTRODUCTIONCajun Town Café: • Location: North side • Years in business: 7 • Size: 250 seating • Employees: 28 • Legal form: partnership between Marquez Moises & Javier Leon.
INTRODUCTIONMission: Cajun Town Café strives to offer the best value ofCajun style dishes in a quick-serve casual diningatmosphere.Vision: Cajun Town Café aims to become a local favoriteCajun Café that is known for pleasing the customer throughconsistency in the taste of the food served and efficiency inthe service provided, every single time.Goals: Open a new location within 5 years, improvecustomer service, and determine new marketing techniques
EXTERNAL ANALYSISAnalysis of general environment •Demographic trends •Economic Trends •Political, legal trends •Socio-cultural trends •Technological trends •Global trends
EXTERNAL ANALYSIS Analysis the industry environment Entry barriers of Power of suppliers Rivalry among Power of buyers Threats of new competitors competitors substitutes Low Low High High HighNo government Many sources of Very competitive Customer Readily availablerestrictions supply exist and saturated indifference to and attractively market products and priced substitutes serviceslow capital Products have Diverse Company is Buyers believerequirements variable prices and competitors- rules dependent of the substitutes have are subject to mild of the game not buyers for a comparable or fluctuations always known significant portion better features of its salesNo switching costs Oversea Competition The demand for High threat from competition with against big chain restaurant meals is other prepared better prices firms elastic food outletsno economic of Local market price war no switching costs Take-homescale requirement supplier with better packaged foods and prices home-prepared food No switching costs
INTERNAL ANALYSISManagement need to understand what the firm’s tangibleresources, Intangible resources, and core competencies are: • Tangible Resources • Intangible Resources • Strengths • Weaknesses
COMPETITIVE ADVANTAGE• Core competencies: They develop their own Cajun food recipes, and the food preparation experience.• Competitive advantage is the consistency and integrity of recipes and food quality combined with the convenient location and affordable prices.
STRATEGIC ALTERNATIVES•Adopt a new strategy: Best-Cost Provider Strategy•Use of organizational structure: simple and functional•Increase the marketing budget and other sales marketing•Training employees to up sell, and offer more options to increase sale•Use technology implementation such as P.O.S system, computerized stock management and time clock management•Promoting a green policy by using recyclable, and friendly degradable material.
STRATEGIC CHOICE • Best-cost Provider Strategy • Implementation of a marketing • Use of technology implementation • Simple and functional structure Owner / ManagerBack of the Front of the Human Procurement Accounting House House resource
STRATEGY IMPLEMENTATIONPrimary Activities • Operations • Marketing and sales • Customer ServiceSupport Activities • Procurement • Human Resource Management • Technology Development • Firm Infrastructure
STRATEGY IMPLEMENTATIONBreak-Even Analysis Total Costs $928,073.69 / yr Break Even $ $815,207.32 / Yr $2,233.44 / Day Break Even Q * 50951 Meals 140 Meals / Day•Assuming an average of $16 per meal.•Breakeven $ = Fixed cost / 1-(Total variable cost / total sales)•Breakeven Q = Fixed cost / price - variable cost per unit.
CONCLUSIONTo meet the goals of the restaurant westrongly recommend: • Implementation of the best-cost provider strategy. • A simple and functional structure. • The implementation of a marketing strategy. • Use technology implementation • Introducing health conscious and organic menu • Entertainment inside the • promote a green policyWith the implementation of these recommendations,managers will benefit by reducing the cost ofoperations, improving the quality and control of thefood, free up more time by reducing paperwork whichallow them to focus more on the customer instead.