Analysis of Café by the Lane: Business Opportunity in New York, USA

This presentation discusses the business opportunity of Café by the Lane, an Australian café in New York, USA. It covers the issues faced by the organization, solutions, and target market. The café's unique aspect of collaborating with poultry farms for cage-free eggs is also highlighted.

BUSINESS OPPORTUNITY
ANALYSIS OF CAFÉ BY THE LANE
NEWYORK, USA

Café by the lane
 Name of the founder: Arushi Mahajan
 Contact number: ?0280684903?
 Inspiration: Once the founder was out
late at night with her friends and could
not manage to find a cafe where they
can have coffee. That dissapointment
worked as her inspiration behind
establishing her own cafe in New York,
USA. Though the founder carries an
Indian background yet she has been
brought up in Brisbane. Therefore, she
is into Australian coffee culture entirely.
 Date:

Overview Of The Case
 Driven by a disappointment regarding a decent café experience and
following the emerging trend of Australian coffee culture ‘Café by the lane’
wants to introduce themselves in the market of USA as an Australian café in
2019.
 Their purpose is to serve best quality food and coffee as coffee was one of
the Australian ‘affordable luxury’ and a part of their daily culture too. Café
By the Lane assures best quality food, beverage and service, which are
going to be available in their every kinds of stores. There will be café, which
serves light meals including sandwiches, cakes and many more (Walters
and Broom 2013). Apart from this, there will be café bar restaurant, café
kiosk as well. The cafe framing a plan of starting their business to New York
City in the mid of 2019, yet they are going to maintain the café tradition of
their country and function accordingly. There is a vast difference between
American cafes and an Australian one, as they do not offer variety of foods.
However, Australian cafes come with food and beverages together.

Overview Of The Case
 The presentation will discuss about existing
issues faced by independent cafes and how
it can be recovered by implementing
effective strategies in the competitive
business environment of New York. As the
major part of the American population is
immigrant, Café By the Lane wants to grab
the opportunity to serve immigrant
Australians as well as coffee lovers from
every nation existing in New York. They are
looking forward to achieve a market share in
the coffee business of America within a
stipulated time.

Issues Faced By The
Organisation
 Competitors- As, Café By the Lane, is initiating a new venture in
New York; the first thing they have to keep in their mind is to face
immense competition from existing café chains and restaurants.
The major population of New York is immigrants and to match
with their taste, cafes from different national origin identify
opportunities to enter into food and beverage business of
America. However, among English pubs, juice bars of Californian
origin and French Bistro; although Australian Cafes are
appreciated enough for their uniqueness and the traditional yet
exceptional environment they provide. Moreover, there are
threats of high competition as the market is complex and
customers’ preference is dynamic.

Issues Faced By The
Organisation
 Understanding the
requirements of the customers:
Café By the Lane is going to receive
a large variety of customer
preferences as the population
belongs to several regions across
the world. Understanding their
requirements can be difficult during
the initial days of operations.
However, it cannot be denied that
initial days are important for a new
industry to gain the exposure in a
foreign market. Therefore, great
issues can be raised if the café fails
to understand the customers’ need.
 Shortage of Skilled staff at a
foreign land: As the café will be
based on traditional Australian
theme, if the organisation
appoints native people to the
system, they have to increase
their budget in order to train
them and make them familiar
with the service that they want
to provide. There is no assurance
that the workforce will be as
efficient as the system demands
(Morris 2013).

Issues Faced By The
Organisation  However, business expansion
involves high chances of risk
especially if initiated in a foreign land
(Jones, et al. 2015). Previous
researches on cafe business,
conducted in New York mention
almost same categories of issues.
Although, intensity of these problems
are not extreme, still if not treated
on time future risks cannot be
ignored.

solution
 Australian café culture comes with authentic flavours of Australia,
which cannot be imitated and served in other existing cafes of
New York. Although, as discussed before eminent coffee chain
like Starbucks has already a wide range of customers yet they
lack that trendy and unique factors in their brand image. It can
be said that if Café By the Lane can promote their products and
unique service after a detail market research then it can attract
the American population and sustain in the market recovering
the competition with other giant café chains.

Solution
 Understanding the requirements
again involves detail market
research and field study, which is
a little time consuming yet can
be recovered if the resources are
committed to deliver the best
quality service and engage
themselves into innovation.
 The company can set preference
while recruitment like candidates
who are Australian immigrants or
have a clear understanding of
Australian culture can be a part
of business operations of the
café. It will resist the company
from spending less monetary
resource on their training.

solution
 These are all strategic individual thoughts will cannot be copied
easily. In order to avoid imitation of strategies the management
should practice a consistent process of innovation in service
(Elder, Lister and Dauvergne 2014).

Opportunity and target
market As discussed before most of the
American population is immigrant,
therefore belongs to various nations.
Hence, New York is a place carrying
opportunities to establish cafes and
restaurants having variety of authentic
cuisines of a particular nation to satisfy
coffee lovers from the same nation or
the others (Matzler et al. 2013). Yet, the
coffee club needs to recover threat of
competitors in order to make best use
of the opportunities.

Unusual aspect about The Coffee
Club
 The café has decided to collaborate with poultry farms which practices to
produce cage-free eggs, they are going to use those eggs only in order to
ensure food and environmental security. This is an extra-ordinary
initiative towards achieving environmental sustainability (Crane and
Matten 2016).

References
 Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
 Elder, S.D., Lister, J. and Dauvergne, P., 2014. Big retail and sustainable coffee: A new
development studies research agenda. Progress in Development Studies, 14(1), pp.77-
90.
 Jones, H., Neal, S., Mohan, G., Connell, K., Cochrane, A. and Bennett, K., 2015. Urban
multiculture and everyday encounters in semi-public, franchised cafe spaces. The
Sociological Review, 63(3), pp.644-661.
 Matzler, K., Bailom, F., Friedrich von den Eichen, S. and Kohler, T., 2013. Business model
innovation: coffee triumphs for Nespresso. Journal of Business Strategy, 34(2), pp.30-37.
 Morris, J., 2013. Why espresso? Explaining changes in European coffee preferences from
a production of culture perspective. European Review of History: Revue europeenne
d'histoire, 20(5), pp.881-901.
 Walters, P. and Broom, A., 2013. The city, the café, and the public realm in Australia.
In Café society (pp. 185-205). Palgrave Macmillan, New York.

Thank you.