CAJUN TOWN CAFÉ ANALYSIS

Consultants:

Younes Aitouazdi Enosadeba OsazuwaMarissa ElizondoFelicia IrvingMaria Antelo

INTRODUCTION

•Location: North side•Years in business: 7 •Size: 250 seating •Employees: 28• Legal form: partnership between

Marquez Moises & Javier Leon.

Cajun Town Café:

INTRODUCTION

Mission: Cajun Town Café strives to offer the best value of Cajun style dishes in a quick-serve casual dining atmosphere. Vision: Cajun Town Café aims to become a local favorite Cajun Café that is known for pleasing the customer through consistency in the taste of the food served and efficiency in the service provided, every single time.

Goals: Open a new location within 5 years, improve customer 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 ANALYSISAnalysis the industry environment

Entry barriers of new competitors

Power of suppliers Rivalry among competitors

Power of buyers Threats of substitutes

Low Low High High High

No government restrictions

Many sources of supply exist

Very competitive and saturated market

Customer indifference to products and services

Readily available and attractively priced substitutes

low capital requirements

Products have variable prices and are subject to mild fluctuations

Diverse competitors- rules of the game not always known

Company is dependent of the buyers for a significant portion of its sales

Buyers believe substitutes have comparable or better features

No switching costs Oversea competition with better prices

Competition against big chain firms

The demand for restaurant meals is elastic

High threat from other prepared food outlets

no economic of scale requirement

Local market supplier with better prices

price war no switching costs Take-home packaged foods and home-prepared food

        No switching costs

INTERNAL ANALYSIS

• Tangible Resources• Intangible Resources• Strengths• Weaknesses

Management need to understand what the firm’s tangible resources, Intangible resources, and core competencies are:

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 / Manager

Back of the House

Front of the House

ProcurementHuman

resource Accounting

STRATEGY IMPLEMENTATION

Primary Activities• Operations• Marketing and sales• Customer Service

Support Activities• Procurement• Human Resource Management• Technology Development• Firm Infrastructure

STRATEGY IMPLEMENTATION

Total Costs $928,073.69 / yr

Break Even $ $815,207.32 / Yr $2,233.44 / Day

Break Even Q * 50951 Meals 140 Meals / Day

Break-Even Analysis

•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.

CONCLUSION To meet the goals of the restaurant we strongly 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 policy

With the implementation of these recommendations, managers will benefit by reducing the cost of operations, improving the quality and control of the food, free up more time by reducing paperwork which allow them to focus more on the customer instead.

THANK YOU FOR YOUR ATTENTION

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