Assignment Hospitality Management
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Running head: FINANCE MANAGEMENT
1
Business Law
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Institution:
Date:
1
Business Law
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Date:
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FINANCE MANAGEMENT 2
FINANCE MANAGEMENT 3
Executive summary
Green café is an eating establishment focusing on nutritious, healthy fast food to the local
downtown area. Based on the distinct menu, green café will offer meals that are desired by
the locals. Entering into this market is not easy , being a highly competitive industry. Inorder
to have an edge over its competitors, the company has acquired an excellent locality, offer
good service and will have a comprehensive marketing plan. This paper will seek to analyse
among others the Green Café s projected financials, its strengths and weaknesses as well as
recommendations and conclusions.
Executive summary
Green café is an eating establishment focusing on nutritious, healthy fast food to the local
downtown area. Based on the distinct menu, green café will offer meals that are desired by
the locals. Entering into this market is not easy , being a highly competitive industry. Inorder
to have an edge over its competitors, the company has acquired an excellent locality, offer
good service and will have a comprehensive marketing plan. This paper will seek to analyse
among others the Green Café s projected financials, its strengths and weaknesses as well as
recommendations and conclusions.
FINANCE MANAGEMENT 4
Table of Contents
Introduction................................................................................................................................5
SWOT Analysis of Green Cafe/ Discussion of Feasibility studies............................................5
Strengths.................................................................................................................................5
Weaknesses.............................................................................................................................6
Opportunities..........................................................................................................................6
Threats....................................................................................................................................7
General market characteristics...................................................................................................7
Financial management analysis in the hospitality industry........................................................8
Importance Of Financial Statement Analysis.....................................................................9
There are various importance of ratio analysis which includes..........................................9
1) Decision and plans.......................................................................................................9
Amortization Schedule.............................................................................................................10
Projected income statement......................................................................................................11
Projected cashflows..................................................................................................................11
Site evaluation..........................................................................................................................12
Accessibility and parking.........................................................................................................13
Rental costs..............................................................................................................................13
Supply and Demand information analysis...............................................................................13
Recommendation and conclusion.............................................................................................14
References................................................................................................................................16
Table of Contents
Introduction................................................................................................................................5
SWOT Analysis of Green Cafe/ Discussion of Feasibility studies............................................5
Strengths.................................................................................................................................5
Weaknesses.............................................................................................................................6
Opportunities..........................................................................................................................6
Threats....................................................................................................................................7
General market characteristics...................................................................................................7
Financial management analysis in the hospitality industry........................................................8
Importance Of Financial Statement Analysis.....................................................................9
There are various importance of ratio analysis which includes..........................................9
1) Decision and plans.......................................................................................................9
Amortization Schedule.............................................................................................................10
Projected income statement......................................................................................................11
Projected cashflows..................................................................................................................11
Site evaluation..........................................................................................................................12
Accessibility and parking.........................................................................................................13
Rental costs..............................................................................................................................13
Supply and Demand information analysis...............................................................................13
Recommendation and conclusion.............................................................................................14
References................................................................................................................................16
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FINANCE MANAGEMENT 5
Introduction
Hospitality and restaurant management has a lot of factors that are involved in it and should
be managed by qualified people. Financial and marketing strategies should be set to achieve a
Cafés vision and mission. In service industry, it is the service and the product that a the Café
is pushing to the market that makes the café to stand out of the rest(Barrows, 2016). In this
case, the Green Café is making strides in its marketing and cuisine for it to be recognized. It
is important for the industry to make sure that the vision and mission are in line with the
financial and marketing strategies of the firm(O'Fallon & Rutherford, n.d.).
SWOT Analysis of Green Café / Discussion of Feasibility studies
A SWOT analysis is an important tool in determining the strengths, weaknesses,
opportunities and threats of the hospitality. The SWOT Analysis is paramount as it helps the
management to create sound management strategies. Green Café that is located in Watertown
location has all these qualities that are associated with the hospitality industry(Sant, 2012). A
clear and robust business strategy is required in setting clear cut business strategies.
Strengths
The strength of the Café include the fact that iit offers cuisine that are of great taste compared
to the other competitors. The café is located at a strategic place where there is a lot of foot
traffic therefore it is able to get many customers. Great prices as compared to the competitors
is yet another strength that Green Café is banking on to have a competitive edge over its
Introduction
Hospitality and restaurant management has a lot of factors that are involved in it and should
be managed by qualified people. Financial and marketing strategies should be set to achieve a
Cafés vision and mission. In service industry, it is the service and the product that a the Café
is pushing to the market that makes the café to stand out of the rest(Barrows, 2016). In this
case, the Green Café is making strides in its marketing and cuisine for it to be recognized. It
is important for the industry to make sure that the vision and mission are in line with the
financial and marketing strategies of the firm(O'Fallon & Rutherford, n.d.).
SWOT Analysis of Green Café / Discussion of Feasibility studies
A SWOT analysis is an important tool in determining the strengths, weaknesses,
opportunities and threats of the hospitality. The SWOT Analysis is paramount as it helps the
management to create sound management strategies. Green Café that is located in Watertown
location has all these qualities that are associated with the hospitality industry(Sant, 2012). A
clear and robust business strategy is required in setting clear cut business strategies.
Strengths
The strength of the Café include the fact that iit offers cuisine that are of great taste compared
to the other competitors. The café is located at a strategic place where there is a lot of foot
traffic therefore it is able to get many customers. Great prices as compared to the competitors
is yet another strength that Green Café is banking on to have a competitive edge over its
FINANCE MANAGEMENT 6
competitors. Also, the cafe has a competent management and staff who have extensive
experience in the industry(Kainthola, 2009).
There are various strengths that are associated with green Café ,they include; contribution to
the local economy(Barrows, 2016). For green café, local attraction will attract more people
who will stay in the hospitality. In staying, they will visit local malls, restaurants and other
places, so the local economy remains vibrant. High profit margins are realized when the cost
of operations which includes salaries and other overheads cost are extremely lower than the
revenues(International hospitality industry, 2016).
Weaknesses
It is crucial for Green café to master its weaknesses so that it may improve on its service
delivery. Some of the weaknesses include lack of packing, high utility costs and high taxation
regime.
Opportunities
The hospitality industry is a billion dollar industry and continues to grow. However, it has a
lot of opportunities for growth and advancement of the new establishment. The first
opportunity for Green Café is innovation and technological advancements. Innovation led to
digitalization where customers have the opportunity to book and reserve the services online.
Globalization is also another opportunity where the green café will rely on its global
recognition and imprint to ensure that it has added its customer base(International hospitality
industry, 2016).
Threats
This is also crucial in analyzing SWOT analysis as there are several threats that this café
faces. As a huge revenue maker, the industry has been encroached by many small economical
competitors. Also, the cafe has a competent management and staff who have extensive
experience in the industry(Kainthola, 2009).
There are various strengths that are associated with green Café ,they include; contribution to
the local economy(Barrows, 2016). For green café, local attraction will attract more people
who will stay in the hospitality. In staying, they will visit local malls, restaurants and other
places, so the local economy remains vibrant. High profit margins are realized when the cost
of operations which includes salaries and other overheads cost are extremely lower than the
revenues(International hospitality industry, 2016).
Weaknesses
It is crucial for Green café to master its weaknesses so that it may improve on its service
delivery. Some of the weaknesses include lack of packing, high utility costs and high taxation
regime.
Opportunities
The hospitality industry is a billion dollar industry and continues to grow. However, it has a
lot of opportunities for growth and advancement of the new establishment. The first
opportunity for Green Café is innovation and technological advancements. Innovation led to
digitalization where customers have the opportunity to book and reserve the services online.
Globalization is also another opportunity where the green café will rely on its global
recognition and imprint to ensure that it has added its customer base(International hospitality
industry, 2016).
Threats
This is also crucial in analyzing SWOT analysis as there are several threats that this café
faces. As a huge revenue maker, the industry has been encroached by many small economical
FINANCE MANAGEMENT 7
cafes also known as boutique alternatives. There is also the threat of a shrinking economy in
the country which is a prevalent condition and a worse than expected economy undermining
the purchasing power of the customers(Perry, 2009).
SWOT Analysis
Strengths
Strategic location
Distinct menu and cuisine
Competent management and staff
Competitive prices
Weaknesses
Limited parking area
Unfavorable tax policies
Unavailability of some cuisines
Opportunities
Innovative ways to make bookings
Technological enhancement
Globalization
Customers all year long
Threats
Shrinking economy
Competition
Worse than expected economy
Lower purchasing power.
General market characteristics
There are several market characteristics that are associated with the hospitality industry and
therefore Green Café should possess them . They include the following; as a service industry
requires great service and high levels of customer satisfaction in order to make it big in the
industry. Being a highly competitive industry, the general service to a customer will
determine the number of customers that will remain loyal to the hospitality(Walker & Miller,
2015). In green café, the management has employment highly competent staff to take
cafes also known as boutique alternatives. There is also the threat of a shrinking economy in
the country which is a prevalent condition and a worse than expected economy undermining
the purchasing power of the customers(Perry, 2009).
SWOT Analysis
Strengths
Strategic location
Distinct menu and cuisine
Competent management and staff
Competitive prices
Weaknesses
Limited parking area
Unfavorable tax policies
Unavailability of some cuisines
Opportunities
Innovative ways to make bookings
Technological enhancement
Globalization
Customers all year long
Threats
Shrinking economy
Competition
Worse than expected economy
Lower purchasing power.
General market characteristics
There are several market characteristics that are associated with the hospitality industry and
therefore Green Café should possess them . They include the following; as a service industry
requires great service and high levels of customer satisfaction in order to make it big in the
industry. Being a highly competitive industry, the general service to a customer will
determine the number of customers that will remain loyal to the hospitality(Walker & Miller,
2015). In green café, the management has employment highly competent staff to take
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FINANCE MANAGEMENT 8
customer service to the next level. The battle is won on this front, the better the service the
bigger the number of customers.
The next characteristic is product differentiation and similarities. This industry has a lot of
similarities as it take care of peoples need, therefore, a product sold maybe a cuisine will only
be differentiated and made better for it to be absolutely different from the rest (Walker &
Miller, 2015).Intangible service characteristics means that the service provided cannot be
touched or seen but can be felt. There are also perishable services characteristics which mean
that the service won’t last long and will not be felt in the long term. Inseparable service
means that there is customer experience. There are also shift work services that will be
introduced at the Café where hospitality industry being employer employees its staff in shifts
because of its 24 hour services all year long. The different shifts include rotational shifts,
apart shifts and many more (Nykiel, 2011). This is meant to provide a comprehensive all
around service that is particularly favoring the employees so that they do not tire (Walker &
Miller, 2015).
Last but not least, the general satisfaction of guests will determine the affection of the café to
the customer and bring in return customers. A customer is endeared to the service that is
provided to him and will only come back if the service stands out from the rest. It is also a
risky business as many hotels and cafes will shut down after some time due to loss of
customers(Choudhary, 2013).
Financial management analysis in the hospitality industry
Prudent financial management requires competent and qualified staff that is able to handle
the job under the stipulated guidelines in accounting. It is imperative for a new establishment
like green café to have strong financial management structure for its operations(Choudhary,
2013). The business will only survive if its management of finances is done with impeccable
customer service to the next level. The battle is won on this front, the better the service the
bigger the number of customers.
The next characteristic is product differentiation and similarities. This industry has a lot of
similarities as it take care of peoples need, therefore, a product sold maybe a cuisine will only
be differentiated and made better for it to be absolutely different from the rest (Walker &
Miller, 2015).Intangible service characteristics means that the service provided cannot be
touched or seen but can be felt. There are also perishable services characteristics which mean
that the service won’t last long and will not be felt in the long term. Inseparable service
means that there is customer experience. There are also shift work services that will be
introduced at the Café where hospitality industry being employer employees its staff in shifts
because of its 24 hour services all year long. The different shifts include rotational shifts,
apart shifts and many more (Nykiel, 2011). This is meant to provide a comprehensive all
around service that is particularly favoring the employees so that they do not tire (Walker &
Miller, 2015).
Last but not least, the general satisfaction of guests will determine the affection of the café to
the customer and bring in return customers. A customer is endeared to the service that is
provided to him and will only come back if the service stands out from the rest. It is also a
risky business as many hotels and cafes will shut down after some time due to loss of
customers(Choudhary, 2013).
Financial management analysis in the hospitality industry
Prudent financial management requires competent and qualified staff that is able to handle
the job under the stipulated guidelines in accounting. It is imperative for a new establishment
like green café to have strong financial management structure for its operations(Choudhary,
2013). The business will only survive if its management of finances is done with impeccable
FINANCE MANAGEMENT 9
touch. Managers, accountants and finance officers all work together in their various
departments to ensure that green cafes operations are efficient. To get the true picture of the
company, financial statement analysis is done to give the forecasted trend and make certain
managerial decisions(Mathews, 2008).
Statements of financial analysis, financial ratio analysis and budgets also help in making
decisions that help a company to focus on the future(Legrand, Sloan & Chen, n.d.).
Importance Of Financial Statement Analysis
There are various importance of ratio analysis for this café which includes
1) Decision and plans
The management of green café is able to make decisions and formulating plans and
policies for future needs. They evaluate the efficiency and performance demands of a
company to realize its goals and visions.
2) Investment decisions
In this case, green café may decide to expand or not to expand based on their analysis
of financial statement. As a small café, the vision of the company is to expand and
have a large network. The analysis will ensure that management makes decisions that
are relevant and important.
3) Extension of credit decisions
After analysis of financial analysis, the company can be able to determine whether
there is need to take further credit or not for expansion or operational efficiency. If the
determining ratios are good, it is good for the company to take a credit facility.
4) Shareholding decisions
touch. Managers, accountants and finance officers all work together in their various
departments to ensure that green cafes operations are efficient. To get the true picture of the
company, financial statement analysis is done to give the forecasted trend and make certain
managerial decisions(Mathews, 2008).
Statements of financial analysis, financial ratio analysis and budgets also help in making
decisions that help a company to focus on the future(Legrand, Sloan & Chen, n.d.).
Importance Of Financial Statement Analysis
There are various importance of ratio analysis for this café which includes
1) Decision and plans
The management of green café is able to make decisions and formulating plans and
policies for future needs. They evaluate the efficiency and performance demands of a
company to realize its goals and visions.
2) Investment decisions
In this case, green café may decide to expand or not to expand based on their analysis
of financial statement. As a small café, the vision of the company is to expand and
have a large network. The analysis will ensure that management makes decisions that
are relevant and important.
3) Extension of credit decisions
After analysis of financial analysis, the company can be able to determine whether
there is need to take further credit or not for expansion or operational efficiency. If the
determining ratios are good, it is good for the company to take a credit facility.
4) Shareholding decisions
FINANCE MANAGEMENT 10
If Green café has several shareholders or even publicly trading, the shareholders may
decide to retain, relinquish or buy more of the shares of the company based on the
financial analysis. Poor financial analysis reports means that the shareholders may
decide to sell their shares due to poor performance and vice versa(Brigham &
Ehrhardt, 2017).
Amortization Schedule
A B C D E
1 Principle 150,000
2 Interest rate 5.50
3 Term 30
4 payment 851.68
5
6 Period Principal Interest Payment Balance
7 150,000.00
8 1 164.18 687.50 851.68 149,835.82
9 2 164.93 686.75 851.68 149,670.89
10 3 164.69 685.99 851.68 149,505.20
11 4 166.45 685.23 851.68 149,338.75
If Green café has several shareholders or even publicly trading, the shareholders may
decide to retain, relinquish or buy more of the shares of the company based on the
financial analysis. Poor financial analysis reports means that the shareholders may
decide to sell their shares due to poor performance and vice versa(Brigham &
Ehrhardt, 2017).
Amortization Schedule
A B C D E
1 Principle 150,000
2 Interest rate 5.50
3 Term 30
4 payment 851.68
5
6 Period Principal Interest Payment Balance
7 150,000.00
8 1 164.18 687.50 851.68 149,835.82
9 2 164.93 686.75 851.68 149,670.89
10 3 164.69 685.99 851.68 149,505.20
11 4 166.45 685.23 851.68 149,338.75
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FINANCE MANAGEMENT 11
12 5 167.21 684.47 851.68 149,171.54
Projected income statement
Amount $
( 000)
Amount$(000
)
Sales revenues ( 11,100
Less : Expenses
Rent expenses 1,000
salaries 4,500
water 1200
Advertisement 900
Miscelenous expenses 2000
Total expenses (9600)
Total budgeted profits 1,500
Projected cashflows
Jan Feb March April May June Total
Cash inflows
12 5 167.21 684.47 851.68 149,171.54
Projected income statement
Amount $
( 000)
Amount$(000
)
Sales revenues ( 11,100
Less : Expenses
Rent expenses 1,000
salaries 4,500
water 1200
Advertisement 900
Miscelenous expenses 2000
Total expenses (9600)
Total budgeted profits 1,500
Projected cashflows
Jan Feb March April May June Total
Cash inflows
FINANCE MANAGEMENT 12
Sales 60,000 60,000 60,000 60,000 60,000 60,000 360,000
Total inflows 60,000 60,000 60,000 60,000 60,000 60,000 360,000
Cash outflows
rent 8000 8000 8000 8000 8000 8000 48,000
marketing 4000 4000 4000 4000 4000 4000 24000
salaries 15000 15000 15000 15000 15000 15000 90000
Utilities(water and elect) 1000 1000 1000 1000 1000 1000 6000
Materials 10000 10000 10000 10000 10000 10000 60000
Insurance 700 700 700 700 700 700 4200
Other costs 500 500 500 500 500 500 3000
TOTAL OUTFLOWS 39200 39200 39200 39200 39200 39200 235200
Netcashflow 20400 20400 20400 20400 20400 20400 122400
Site evaluation
Site evaluation is an important aspect when determining the best place to locate the
restaurant. The following are the factors that we will consider when setting up Green Café
which is located in water town shopping outlet. The size of the restaurant is 40m2 of dining
area which accommodates 28 customers and a table capacity of seven(Tesone, 2015). The
Café’ is located at a central point in the town. The site is located at a very strategic place.
Also, we recognized that foot traffic is very important for us to get customers. We do not
want to be tucked away in a corner where people are likely to pass us by(Pratap, n.d.).
Sales 60,000 60,000 60,000 60,000 60,000 60,000 360,000
Total inflows 60,000 60,000 60,000 60,000 60,000 60,000 360,000
Cash outflows
rent 8000 8000 8000 8000 8000 8000 48,000
marketing 4000 4000 4000 4000 4000 4000 24000
salaries 15000 15000 15000 15000 15000 15000 90000
Utilities(water and elect) 1000 1000 1000 1000 1000 1000 6000
Materials 10000 10000 10000 10000 10000 10000 60000
Insurance 700 700 700 700 700 700 4200
Other costs 500 500 500 500 500 500 3000
TOTAL OUTFLOWS 39200 39200 39200 39200 39200 39200 235200
Netcashflow 20400 20400 20400 20400 20400 20400 122400
Site evaluation
Site evaluation is an important aspect when determining the best place to locate the
restaurant. The following are the factors that we will consider when setting up Green Café
which is located in water town shopping outlet. The size of the restaurant is 40m2 of dining
area which accommodates 28 customers and a table capacity of seven(Tesone, 2015). The
Café’ is located at a central point in the town. The site is located at a very strategic place.
Also, we recognized that foot traffic is very important for us to get customers. We do not
want to be tucked away in a corner where people are likely to pass us by(Pratap, n.d.).
FINANCE MANAGEMENT 13
The traffic outside the location is sufficient to meet the café needs. Traffic is heavy in the
morning and in the evening , during the day, traffic is moderate. When traffic is high, this is
the time that we are likely to get a lot of customers this also includes the lunch hour period.
Accessibility and parking
The café is located at a good place which is easily accessible to customers, suppliers and
employees. It is on a busy street where it is easy for cars to get in and out of the parking
lot(Barrows, Powers & Powers, 2009). The café is also accessible to people with disabilities
and the parking is ample.
Rental costs
Monthly rent is relatively low at $8000 but this is due to the location in which the business is
located. However, janitorial services are included in as part of the rent which also covers
insurance for the building and maintenance. Generally, the cost is well within our budget and
considering the business potential in the area, the rent is not too high(Jayanti Prakash., 2013).
Supply and Demand information analysis
Demographics
Watertown shopping outlet is a busy centre where a café business can easily thrive. There
are two other cafes within the locality but still competition is not too high. The area in which
the café is situated has a lot of industries, banks and also has a residential area. This means
that the population is relatively high. Our target customers include people working in this
area most of them being employees of major companies and industries located in the area.
There has been a high demand of restaurant and eateries in the area given that only two
restaurants have been in existence in the area(DeFranco & Lattin, 2007).
The traffic outside the location is sufficient to meet the café needs. Traffic is heavy in the
morning and in the evening , during the day, traffic is moderate. When traffic is high, this is
the time that we are likely to get a lot of customers this also includes the lunch hour period.
Accessibility and parking
The café is located at a good place which is easily accessible to customers, suppliers and
employees. It is on a busy street where it is easy for cars to get in and out of the parking
lot(Barrows, Powers & Powers, 2009). The café is also accessible to people with disabilities
and the parking is ample.
Rental costs
Monthly rent is relatively low at $8000 but this is due to the location in which the business is
located. However, janitorial services are included in as part of the rent which also covers
insurance for the building and maintenance. Generally, the cost is well within our budget and
considering the business potential in the area, the rent is not too high(Jayanti Prakash., 2013).
Supply and Demand information analysis
Demographics
Watertown shopping outlet is a busy centre where a café business can easily thrive. There
are two other cafes within the locality but still competition is not too high. The area in which
the café is situated has a lot of industries, banks and also has a residential area. This means
that the population is relatively high. Our target customers include people working in this
area most of them being employees of major companies and industries located in the area.
There has been a high demand of restaurant and eateries in the area given that only two
restaurants have been in existence in the area(DeFranco & Lattin, 2007).
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FINANCE MANAGEMENT 14
The restaurants have been located near each other. The area has a population of over 60,000
people which is sufficient to sustain the business for growth purposes.
Domestic consumption of coffee has been on the rise with the Preparations such as
capuccino, latte, mocha, frapuccino and cold drinks have been protagonists in the change of
trend.The three cafes in the market are offering the same type of menu, therefore
differentiating is what will make us have return customers(Singh & Dewan, 2009). The
advantage that Green Cafes have as compared to there other two cafes in the area is that we
have the best chefs, waiters and waitresses who offer the best service and unbeatable prices.
Green Café has an edge over its competitors because it is located at a strategic place as
compared to the other two restaurants.
Recommendation and conclusion
There are many characteristics of a successful coffee Cafe business that should be taken into
account when setting up a cafeteria, for example, the basic aspects to combine are the quality
of the food and drinks and good customer service, although we should not forget that
customers also seek a great atmosphere and an innovative concept (Olsen, West & Tse,
2014).
The appropriate location is when your cafe is close to many potential customers, places near
office buildings, universities, large hospitals and shopping centers can bring you a large
number of customers; It is essential that before starting a business you choose the best place
to put it. Remember to always keep in mind these tips to start the cafeteria(Madura, 2018).
The flavor of the drinks and the excellent service are what will keep your business open, but
if we add an excellent location, your opportunity to increase sales and customers is much
greater.
The restaurants have been located near each other. The area has a population of over 60,000
people which is sufficient to sustain the business for growth purposes.
Domestic consumption of coffee has been on the rise with the Preparations such as
capuccino, latte, mocha, frapuccino and cold drinks have been protagonists in the change of
trend.The three cafes in the market are offering the same type of menu, therefore
differentiating is what will make us have return customers(Singh & Dewan, 2009). The
advantage that Green Cafes have as compared to there other two cafes in the area is that we
have the best chefs, waiters and waitresses who offer the best service and unbeatable prices.
Green Café has an edge over its competitors because it is located at a strategic place as
compared to the other two restaurants.
Recommendation and conclusion
There are many characteristics of a successful coffee Cafe business that should be taken into
account when setting up a cafeteria, for example, the basic aspects to combine are the quality
of the food and drinks and good customer service, although we should not forget that
customers also seek a great atmosphere and an innovative concept (Olsen, West & Tse,
2014).
The appropriate location is when your cafe is close to many potential customers, places near
office buildings, universities, large hospitals and shopping centers can bring you a large
number of customers; It is essential that before starting a business you choose the best place
to put it. Remember to always keep in mind these tips to start the cafeteria(Madura, 2018).
The flavor of the drinks and the excellent service are what will keep your business open, but
if we add an excellent location, your opportunity to increase sales and customers is much
greater.
FINANCE MANAGEMENT 15
To be able to choose the best location it is necessary to check the amount of people who
circulate near the potential premises. If in addition to obtaining an excellent location you
have the opportunity to rent or buy a local car service, that is a better option(Baum,
2011).The publicity of the inauguration of a cafeteria is quite important. You must focus on
the qualities of your business, according to the needs of your local customers. An
advertisement on some internet sites specializing in coffee shops and coffee will attract the
attention of several coffee connoisseurs. For example, offering a 10% discount on all
cappuccinos during the first week of sales can attract the attention of customers who prefer
this drink (Block, Hirt & Danielsen, n.d.).
Find your market niche
For customers who tend to hold work meetings in cafeterias you can offer drinks served in
covered containers, to avoid spills and splashes in important documents, this will make many
of these potential customers consider your cafeteria as an appropriate place to do
business (Block, Hirt & Danielsen, n.d.). This is part of what makes up a niche market.
Good cafes evoke mental images of warmth, comfort and satisfaction. Knowing the basic
consumer, he prefers the good atmosphere so he goes to the coffee shops that are very
successful and are always full of customers. When designing a cafeteria plan it is essential to
think about promotion and growth.
To be able to choose the best location it is necessary to check the amount of people who
circulate near the potential premises. If in addition to obtaining an excellent location you
have the opportunity to rent or buy a local car service, that is a better option(Baum,
2011).The publicity of the inauguration of a cafeteria is quite important. You must focus on
the qualities of your business, according to the needs of your local customers. An
advertisement on some internet sites specializing in coffee shops and coffee will attract the
attention of several coffee connoisseurs. For example, offering a 10% discount on all
cappuccinos during the first week of sales can attract the attention of customers who prefer
this drink (Block, Hirt & Danielsen, n.d.).
Find your market niche
For customers who tend to hold work meetings in cafeterias you can offer drinks served in
covered containers, to avoid spills and splashes in important documents, this will make many
of these potential customers consider your cafeteria as an appropriate place to do
business (Block, Hirt & Danielsen, n.d.). This is part of what makes up a niche market.
Good cafes evoke mental images of warmth, comfort and satisfaction. Knowing the basic
consumer, he prefers the good atmosphere so he goes to the coffee shops that are very
successful and are always full of customers. When designing a cafeteria plan it is essential to
think about promotion and growth.
FINANCE MANAGEMENT 16
References
Barrows, C. (2016). Introduction to management in the hospitality industry. [Place of
publication not identified]: John Wiley.
Barrows, C., Powers, T., & Powers, T. (2009). Introduction to management in the hospitality
industry. Hoboken, N.J.: John Wiley & Sons.
Baum, T. (2011). Hospitality management. Los Angeles: Sage.
Block, S., Hirt, G., & Danielsen, B. Foundations of financial management.
Brigham, E., & Ehrhardt, M. (2017). Financial management. Boston (MA): Cengage
Learning.
References
Barrows, C. (2016). Introduction to management in the hospitality industry. [Place of
publication not identified]: John Wiley.
Barrows, C., Powers, T., & Powers, T. (2009). Introduction to management in the hospitality
industry. Hoboken, N.J.: John Wiley & Sons.
Baum, T. (2011). Hospitality management. Los Angeles: Sage.
Block, S., Hirt, G., & Danielsen, B. Foundations of financial management.
Brigham, E., & Ehrhardt, M. (2017). Financial management. Boston (MA): Cengage
Learning.
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FINANCE MANAGEMENT 17
Brigham, E., & Houston, J. Fundamentals of financial management.
Choudhary, V. (2013). Hospitality industry. New Delhi: Centrum Press.
DeFranco, A., & Lattin, T. (2007). Hospitality financial management. Hoboken, N.J.: John
Wiley & Sons.
Jayanti Prakash. (2013). Hospitality revenue and finance management. New Delhi: Centrum
Press.
Kainthola, V. (2009). Principles of hotel management. Chandni Chowk, Delhi [India]: Global
Media.
Legrand, W., Sloan, P., & Chen, J. Sustainability in the hospitality industry.
Madura, J. (2018). International financial management. US: Cengage Learning Custom
Publication.
Mathews, J. (2008). Hotel management. Jaipur, Raj., India: Pointer Publishers.
Olsen, M., West, J., & Tse, E. (2014). Strategic management in the hospitality industry.
Harlow: Pearson.
O'Fallon, M., & Rutherford, D. Hotel management and operations.
Perry, I. (2009). Safety puzzles for the hospitality industry. Amherst, Mass.: HRD Press.
Pratap, S. Finance management in hospitality sector.
Brigham, E., & Houston, J. Fundamentals of financial management.
Choudhary, V. (2013). Hospitality industry. New Delhi: Centrum Press.
DeFranco, A., & Lattin, T. (2007). Hospitality financial management. Hoboken, N.J.: John
Wiley & Sons.
Jayanti Prakash. (2013). Hospitality revenue and finance management. New Delhi: Centrum
Press.
Kainthola, V. (2009). Principles of hotel management. Chandni Chowk, Delhi [India]: Global
Media.
Legrand, W., Sloan, P., & Chen, J. Sustainability in the hospitality industry.
Madura, J. (2018). International financial management. US: Cengage Learning Custom
Publication.
Mathews, J. (2008). Hotel management. Jaipur, Raj., India: Pointer Publishers.
Olsen, M., West, J., & Tse, E. (2014). Strategic management in the hospitality industry.
Harlow: Pearson.
O'Fallon, M., & Rutherford, D. Hotel management and operations.
Perry, I. (2009). Safety puzzles for the hospitality industry. Amherst, Mass.: HRD Press.
Pratap, S. Finance management in hospitality sector.
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