Happy Hour Coffee House Case Study

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The Happy Hour Coffee House: Building a Bar/Café/Restaurant Franchise to Compete with Starbucks Coffee

Strategy Brief:

The primary business strategy to be proposed is defined by the example of the Starbucks Coffee house, and the limitations of the coffee as a type of beverage-based institution. The Happy Hour Coffee House will be a competing institution in the neighborhood by including the sale of alcoholic beverages after work (during happy hour) and into the late night hours. Of course, the coffee house will have a wide range of beverages related to coffee, but it will also expand upon the “late night crowd” that may want variety in a coffee house atmosphere. Starbucks typically offers a broader range of food products as an option to the
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This approach focuses on a specific portion of the working population that rely on these products with a fast turnover. However, Starbucks has been increasingly confronted by lower sales in its coffee products, which have forced the franchise to include alcoholic beverages in an attempt to increase sales: “In an attempt to boost sales and bring in an evening crowd, some Starbucks have already begun to serve alcohol, with thousands more to begin soon” (Roncero-Menendez para.2). This plan, however, is primarily an urban experiment, which has not expanded into suburban or semi-urban areas. However, the Starbucks brand name appeal to coffee drinkers and health-orientated people has been a problem in the “contamination” of their marketing image through this approach: “Consumers who are highly health-oriented might find an organic juice drink leaning against a bottle of beer in a self-serve cooler to be less appealing. (Dooley para.5). these are the major marketing issues that prevent Starbucks from totally dominating the coffee/alcohol marketplace, which opens the door to new strategies to attract a more diverse consumer audience for The Happy Hour Coffee …show more content…
A manager will oversee these various aspects of service to the customer, which will involve coordinating food service and beverage production from these two differing aspects of operations. Day-today policy management will be an appropriative to coordinate all of these various operations, which will entail innovation and oversight in the merger of bar and restaurant culture in a coffee house atmosphere. Monitoring of food services will be a key aspect of manager responsibilities, which will entail a more social presence for customers being served at the tables. Of course, customers may also come in and out of the facility to be served at the coffee bar, so the management will need to be cognizant of this “fast food” aspect of service. More so, the alcohol bar will be a traditional bar (with high stools) in which the manager must coordinate with the bartender to maintain this section of the facility. Management must provide a person-to-person engagement in the many diverse methods of food and service that are provided in a progressive environment. Training of staff and customer relations are crucial for providing a dynamic option in the coffee house marketplace through the additional options of restaurant foods and alcoholic beverages for the 20s and 30s age

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