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A Feasibility Study for Establishing a Coffee Shop in the UK

Making a New Coffee Shop Feasibility Study

Truly, making an organized feasibility study for any business like a coffee shop, a restaurant, or  a wedding planner would make such a business successful in the future. A cup of coffee in the morning is essential in many countries, especially in the US and the U.K. Studies show that about 330 million cups of coffee are consumed daily in the US and people use nearly 1/8 of their monthly salary on coffee at work or during their lunch breaks. In Britain, people consume more than 70 million cups of coffee daily (Rodger, 2015, P.2). Many people cannot go through their day without at least three cups of coffee per day and sometimes more. Thus, coffee, for many people, is an essential aspect of life that they cannot live without it.


Why to Select the UK:

In the U.K., there are various chains of coffee shops everywhere, including Costa Coffee, Star Bucks, and Harris Coffee etc. Recently, all these chains faced many problems in satisfying their customers. Because of that, the market gained a chance to be improved and developed. Therefore, many coffee shops started to appear in Coventry in the U.K. The next report will discuss the possibilities of setting up a new coffee shop in Coventry and the problems that current coffee shops are facing in the U.K., the problems facing the business in general in the U.K. and the possibilities of setting up a new coffee shop in Coventry. The report will also discuss the efficiency of the current industry and the efficiency of the idea of setting a new coffee shop. The findings will all be based upon research done by the writer on customers’ opinions about the current coffee chains in the U.K., discussing efficiency, tracking and customer service of coffee shops.


Analysis and Findings:

1- Competition:

It is important to understand the amount of competition that the brand will face whenever one launches it. Recently in the United Kingdom, coffee shops have been said to even replace bars in the country. They became popular in no time and many coffee brands were established all over the country most of which gained their own set of customers and expanded regularly including Costa Coffee, Starbucks, Harris coffee etc. After 2014, the growth of the coffee shop industry was found to have developed a lot and in the spam of one year (Levitt, 2015, p.5). The industry was found to have grown by more than 20% becoming one of the fastest industries in the country. Because of that, when deciding upon setting up a new place it is essential to study the competitors one will have to face in the coffee shop industry. Getting comments from customers is very beneficial, as it would strengthen relationships with them and besides attracting new possible customers (Liang, n. d. P.1-2).


2- Efficiency:

To set a new coffee shop it is essential to analyze the problems that the current chains are facing and discuss the efficiency of the service provided by the current chains in order to avoid future problems in the owned coffee shop. According to Levitt (2015, p.10), people have recently started boycotting current coffee shop chains in the U.K.; famous coffee shops like Costa and Harris have recently started facing problems with their customers and their services because of their tax evasion problems and the inefficiency of their services. A lot of coffee shops offer patisseries and other products beside the normal drinks and coffees and recently a lot of complaints have been filed against a lot of coffee shops because of the bad quality of the drinks or the products provided inside a couple of branches of the coffee shop despite rather expensive prices for the products.


3- Customer Service:

The quality of the customer service provided to customers in Costa coffee and other cafes has recently faced a big hit thanks to the various complaints from customers about the lack of attention of the staff in some shops and the large wait they have to get accustomed to in order to get their orders. Coffee shops have also recently faced many complaints because of their various violations in terms of labor law; many coffee shops have canceled the lunch break for their employees and ignored giving pay raises to their employees. Some have cut down wages for employees for no reason and most have violated various parts of the labor law and that led to a lot of problems for the coffee shops and the customers because unsatisfied employees lead to unsatisfied customers (Liang, n. d. P.3).


Summary:

In conclusion, in order to establish a coffee shop in Coventry in the U.K., it is essential to study the market of the coffee shop industry in the U.K. and identify all the problems that the coffee shop could face in the future. It is essential to understand that the U.K. has a big market in the coffee shop industry and that the current market has a many problems. However, it also has a lot of competition, thus the place of the coffee shop is important and proper market research for the coffee shop is important as well. According to Bookman (2013, P.189) “cafés are the third place so customers have their home and their work”. The coffee shop in Coventry will be in a strategic place and thus it will be in a very good spot place wise. It will probably be a small coffee shop however, the place it will be in will be sufficient to cover for that weak point in space. Since the other coffee shops in the U.K. are all facing problems satisfying their customers with their patisseries and drinks the new coffee shop must establish a way to satisfy its customers. Hiring a chef or buying from high quality productions will greatly lead to satisfied customers, which will lead to increasing the amount of customers for the coffee shop and maybe lead to an opportunity of opening up more branches and bigger branches of the same coffee shop in other parts of the U.K. and the world.


Recommendations:

In order to set up a new Coffee shop place in Coventry it is essential to:

1- The place of the new coffee shop is better to be in Trinity Street as there is only Café Italia and it does not attract many customers because of the lack of good customer service and good food.

2- Research the market and identify the competitors one will have to face after opening the new owned place.

3- Identify the efficiency of the competitors one finds about in the field.

4- Identify the service problems that customers face in the various Cafes in the U.K.

5- Set up a plan to face in order to cancel all the problems other Cafes faced before.

6- Choose a good place for the new Café and start planning a marketing strategy for it.

7- Improve all the aspects of the café including the drinks and patisseries aspects and even the breakfast and sandwiches that one chooses to provide in the café.

8- Set up a clear policy on dealing with customers.

9- Give the employees the pays they deserve and follow through with the taxes and the labor law.


A Feasibility Study for Establishing a Coffee Shop in the UK

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