Feasibility Studies of Union Café & Catering

This report is based on finding the feasibility of establishing union café and catering. The report is based on finding the best location for the cafeteria among the NSW, Pyrmont and Sydney so that a large number of customers get attracted towards the cafeteria. The purpose of this report is to find the appropriate location of the business to start. It includes analyzing the internal and external market condition to examine the feasibility.

Feasibility Studies of Union Café & Catering

Executive summary
This report is based on finding the feasibility of establishing union café and catering. The report
is based on finding the best location for the cafeteria among the NSW, Pyrmont and Sydney so
that a large number of customers get attracted towards the cafeteria. The purpose of this report is
to find the appropriate location of the business to start. It includes analyzing the internal and
external market condition to examine the feasibility. The finding is done with the help of many
kinds of research, including problems, aims, objectives and research questions. This report
includes a literature review, methodology, data finding, data analysis and discussion. A literature
review is done by analyzing the market and using marketing mix comprises of 7 P’s that are
product, price, promotion, place, packaging, positioning and people. Industry analysis was also
done which includes size and growth, maturity and trends and environmental impacts of the
industry on the business plan. Some other analyses are also done to find out the feasibility of the
union café and catering. This analysis includes SWOT analysis, PESTEL analysis, competitor
analysis, Porter's Five Forces analysis etc. climate changing conditions have been finding out to
research about the climates of different countries suitable for the café and target market was
analysed with the help of market demographics. Pricing policies of the different countries are
analysed with the help of a pricing strategy matrix and different pricing approaches. The
methodology of finding the feasibility of the plan includes research methodology which has been
done with the help of data collection method and qualitative and quantitative data. The research
approach has been applied to the study which comprises of sampling method, data collection
method, quantitative data collection method and qualitative data collection method. Ethical
considerations have also been done to find out the legal values to be kept in mind while
preparing the report. After the complete report findings have been made from the data collected
on behalf of qualitative and quantitative analyses and at last discussions have been made to
evaluate the data and find out the feasibility of the location. Recommendations are also provided
at the end to support the research study, and the conclusion is given at last to summarize the
whole report.

Table of Contents:
INTRODUCTION 5
PROBLEM SPACE 5
Research problem 5
Research aim 5
Research objectives 6
Research questions 6
LITERATURE REVIEW 6
Market analysis 6
Marketing mix 6
Product 6
Price 7
Promotion 7
Place 7
Packaging 7
Positioning 7
People 7
Industry analysis: 8
Size and growth: 8
Maturity and Trends 8
Environmental impacts: 8
SWOT analysis: 8
PESTEL analysis: 10
Climate changing 11
Risk analysis 11
Consumer behaviour analysis 13

Competitor analysis 13
Porter’s Five force analysis 13
Target market 15
Market demographics 15
Pricing 18
The Pricing Strategy Matrix 19
Conceptual map 20
METHODOLOGY: 21
Research methodology 21
Data collection method 21
Quantitative and Qualitative data 21
Research Approach: 21
Sampling method: 22
Data Collection Method: 22
Quantitative data: 22
Qualitative Data 23
Ethical Consideration 24
RESEARCH FINDINGS: 25
Quantitative analyses 25
Qualitative Analysis: 38
DISCUSSION 40
RECOMMENDATION 43
CONCLUSION 46
REFERENCE LIST 47

Introduction
As today the coffee has become the most crucial need of most of the population of the world.
More than half of the population starts their day with a cup of coffee. With the growing demand
for coffee, union cafeteria and catering is planning to open a cafeteria named Union Café and
cafeteria. Since the business will operate at a new location and will concentrate primarily on
business events, meetings, conferences and seminars etcetera., hence, their main focus will be on
the location of the cafeteria. The primary purpose of this report is to analyse the market situation
to start the new venture with the help of some tools and techniques such as qualitative analysis,
discussions and professionals, established approach, SWOT analysis, PESTEL analysis and
statistical surveys etcetera (Jebrin, 2017).
The report will perform a literature review in the context of the topic and will explain the
problem in detail. It will critically analyze each variable related to the plan and will present a
conceptual map of the idea. The adopted research method will be based on using the sampling
techniques and methods to find out the information and collecting the relevant data for the
research. Based on the collected data, different findings will be present with the help of tables
and graphs and then evaluated to check out the feasibility of the plan. A detailed discussion will
be made in the report after appropriate findings and to find out the answers to the research
questions. A short conclusion will be made at the end of the report to get a detailed analysis of
the complete report (Mialon et al. 2016).
Problem Space
Research problem
This report is based on the study of the feasibility of the business plan of Union Café and
cafeteria, who wants to start their new business of cafeteria and catering at a new location. This
report will focus on analyzing the market situation and find the feasibility of the plan at a
particular location.

Research aim
The main aim of this report is to find out the best location for the cafeteria to attract a large
number of customers.
Research objectives
 Finding the appropriate location of the business to start.
 Analyze external and internal market conditions will be analyzed to examine the
feasibility of the business plan.
 Analyse the demand and identify new trends
 To find out if there is a market niche for Union café and catering
Research questions
 What will be the contribution of the location in the productivity of the cafeteria?
 Will the business plan be feasible according to the trending market conditions?
Literature review
The main focus while starting a new business is maintained on its business plan and its feasibility
in the present market. This feasibility can be checked out with the help of market analysis.
Market analysis
It can be done with the help of market segmentation, market needs, industry analysis and
competition and buying patterns. On the basis of market research, it can be found out whether the
business plan is feasible for a particular population or demographic segmentation can prove to be
an essential tool in finding out the population to be focused on. It can be done on the basis of
gender, age, income level and marital status. Knowledge of demographic location helps in
finding out the location of the cafeteria to be planned out. It must also focus on geographic
segmentation that includes analysing the market on the basis of neighbourhood, area code, region
or city. It can also be done on the basis of the upper class, lower class or middle class, skilled
working class and working class. The business planning after a successful market analysis helps
in determining the issues that can be faced during the setup of the business venture (Jebrin,
2018).

Marketing mix
Product
The union café and catering are planning to provide the best quality products and services to
attract large customers. There are more chances of providing best quality products in Sydney as
compared to NSW and Pyrmont due to availability of adequate and required raw material.
Price
It is planning to provide its entire product as cheap and affordable cost and follow pricing
strategy keeping in mind the affordability of the meetings, conferences and events. This will be
suitable in Sydney as it follows a penetration pricing strategy while NSW follows economic
price strategy and Pyrmont follow skimming price strategy (Overton, 2007).
Promotion
Advertising and monthly publications are a source of promotion for union cafeteria. It will also
promote its business plan with the help of the website and other social media as its main
concentration is youth and students. It will focus on Sydney university for more youth attraction,
which will not be possible in NSW and Pyrmont.
Place
It is going to be developed near the university to attract large customers and in an area close to
public transport and the centre of the city. It is also going to be developed near the university as
it is going to focus on students. Hence Sydney will be the best option as compared to NSW and
Pyrmont (Hofstrand et al. 2009).
Packaging
It is planning to use recycled products and biodegradable material wherever possible for
packaging of the products and serving it to customers. Since government rules are less strict in
Sydney as compared to NSW and Pyrmont, hence Sydney will be a viable choice.
Positioning
It is focusing on maintaining its position among other brands to face the competition. The main
focus of union café and catering is to tackle up with the competition from longtime local
competitors and other brands such as Starbucks. Sydney lacks in branded products while NSW

and Pyrmont have high availability of branded shops such as Starbucks, CCD etcetera (Jebrin et
al. 2012).
People
The main focus of this cafeteria is attracting large customers, especially youth and middle-
income workers. Establishing the business near Sydney university will provide more opportunity
and high growth to union café and catering.
Industry analysis:
Union cafeteria and catering is a new business venture planning to start its cafeteria in
Sydney has the main focus on youth and middle-class workers. It aims to focus on
differentiated products to attract a large number of customers. It is planning to open the
venture near the university to focus on students and other youths. This analysis depends on
growth, size, competitors, trends, environmental impacts, technological impacts, climate
changing and risks analysis etcetera (Huang et al. 2017).
Size and growth:
It is analyzed that coffee shops are increasing at a rate of 12% annually. Consumption of
coffee in Sydney is found to be 70% and growing at an annual rate of 7%, while it is found
only 50% in NSW and 55% in Pyrmont (Pagotto et al. 2016).
Maturity and Trends
Since the cafeteria is at its maturity stage, it will face fierce competition with other brands.
On the basis of the analysis, it is determined that due to more healthy eating habits, there are
chances of an increase in the consumption of coffee with 25% of annual growth in future.
This is found to be 12 % in NSW and 15% in Pyrmont (Williams, 2017).
Environmental impacts:
Union cafeteria is also focusing on some environmental impact so that further issues do not
appear. Many issues are presently facing by every company. Similar is in this case. It will also
focus on reducing all environmental impacts that will lead to a reduction in its growth. The union
cafeteria uses no polluting item and wastes harmful for the environment. This will get
opportunities more in Sydney as NSW and Pyrmont relies on heavy environmental restrictions
while those are less in Sydney (Higgins-Desbiolles et al. 2017).

SWOT analysis:
SWOT analysis stands for finding out the strengths, weaknesses, opportunities and threats related
to starting up of new venture. In the case of union cafeteria and catering the swot analysis will
help to understand the positive and negative aspects that it can face in future with relation to the
location of the cafeteria (Higgins-Desbiolles et al. 2017).
NSW
Strengths:
 Large customer attraction
 Efficient network
Weaknesses:
 Competitive market
 Lack of experience
Opportunities:
 Ability to attract more customers
 Ability to recruit skilled staff
Threats:
 Local competition and other brands
 Income level of the targeted market
PYRMONT
Strengths:
 Availability of raw material
 Centre of the city
Weaknesses:
 No built-in brand equity
 Adequate staff to fulfil demands
Opportunities:
 Building brand equity
 Expanding the market
Threats:
 Changing the demand of customers
 Other cafes in the area (Williams,
2017)
SYDNEY
Strengths:
 Close to the university
Weaknesses:
 Demographic analysis

 Close to public transport  Differentiated products
Opportunities:
 Unique décor
 Opening earlier and closing late
Threats:
 Relatively costly food
 Competitive area
PESTEL analysis:
PESTEL analysis focuses on finding out the outcomes of the business plan on different
sections of the market. It includes identifying the impact of several factors on the business
venture such as political, economic, social, technological, environmental and legal factors
(Wales, 2015).
FACTORS NSW PYRMONT SYDNEY
Political: Easy availability
of coffee beans at
a particular
location(Wales,
2015)
Government
regulations
Bureaucratic hurdles
Economic Maintaining quality at
lower cost
Income level of the
targeted market
Social Youth and middle-
class targeted
cafeteria
Affordable for
meetings, events,
conferences
Technological Providing
entertainment and free
access to WiFi
Marketing strategy
based around
technology

Environmental Less pollution and
limited waste
Using biodegradable
and recycling
products
Legal Ethical considerations Les complaints from
consumer
Quick customer
service
:
Climate changing
They are also aware of climate change as it can also have a significant impact on their products
and service. Unavailability of the raw material can result in a reduction of their growth, and
hence, it requires minimum stock for this kind of situation. As there are less climatic variations
in Sydney as compared to NSW and Pyrmont, hence there will be more chances of improved
business in Sydney.
Risk analysis
It is also prepared for risk factors that can come in their way in future. Risk analysis helps them
to find out the possible risk in their field. Risks are related to changing the taste of consumers,
competition level, etcetera (Jebrin et al. 2012).
Establish the
Context
Risk Description Effectiveness of
Controls
Analysis
Evaluation
Objective Context Risk
Source
Description Current
Control
Control
Rating
Risk
Rating
Increase
service
productivi
ty to core
clients by
10 % in 1
change
in
manage
ment
change in
governme
nt funding
Caus
e
Fail
ure
to
Eve
nt
Lea
ds
to
Impact
Results
in poor
service
level to
quality
improve
ment
plans
High 5 Removing risk
sources

year main
tain
client
servi
ce
mana
geme
nt
syste
m
dela
ys
in
serv
ice
deli
very
core
clients
Customer
satisfactio
n and
consumer
delight
Lack of
quality
products
and high
cost
Change in
taxes and
subsidies
Provi
ding
prod
ucts
and
servi
ces at
a
high
cost
Lea
ds
to
cust
ome
r
redu
ctio
n
Result
in the
rise in
the
price of
the
product
Offers
and
allowanc
es
Medium 3 Removing risk
source
Clean and
calm
environm
ent
Use of
non-
biodegra
dable
resource
Lack of
environm
ental
policies
Wast
age
of
resou
rces
Unh
ealt
hy
envi
ron
men
t
Result
in
many
environ
mental
issues
Governa
nce
committe
e
Low 2 Sharing risk
with another
party
Great, Lack of Lack of Lack Lea Result Recruitm High 4 Changing the

friendly
services
adequate
staff
employme
nt
opportunit
ies;
illiteracy
of
conc
entra
tion
ds
to
late
serv
ices
in slow
service
s to
custom
ers
ent o
skilled
staff
consequence
Maintain
good
customer
relationsh
ip
Conflict
s and
service
issues
Unawaren
ess of
laws and
policies
Lack
of
unde
rstan
ding
about
custo
mer
dema
nds
Lea
ds
to
conf
licts
and
prob
lem
s
Resulte
d in
fights
and
misund
erstand
policies
and
procedur
es
Medium 5 Changing the
likelihood
Consumer behaviour analysis
This kind of analysis helps the Union café and catering to know the increasing demand of their
customers and preparing the plan according to their needs. It is analysed that people of Sydney
have a higher level of income who can demand premium coffee, NSW and Pyrmont have lower
income people who can demand cheap and best products. Hence Sydney will help in following
skimming policy and attract customers (Pagotto et al. 2016).
Competitor analysis
The main competition that union café and catering can face is with local competitors and leading
brands. They can face the competition from several other coffee shops in the local area and cost
strategy. List of product availability also acts as a kind of competition between them. Promotion
techniques and other extra services provided by other brands also create competition for them
(Hofstrand et al. 2009).

Porter’s Five force analysis
Factors Region
Pyrmont Sydney NSW
Competitive Rivalry  Local coffee
shops offering special
offers for regular
customers
 Number of
competitors
 Diversity of
competitors
 Providing
best quality
products and
service at
reasonable rates
along with extra
services at no cost
 Industry
concentration
 Industry
growth
 Opening
earlier and closing
later to provide
extra services to
customers
 Quality
Differences
 Brand
loyalty
 Barriers to
exit
 Switching
costs
Supplier Power  Absence of
cartelization
 Number of
suppliers
 Size of
suppliers
 Full control
on regulation of the
price of milk and
coffee by the
government
 Backward
integration
 The
uniqueness of each
suppliers' products
 Company’s
ability to substitute
Buyer Power  Variety of
products
 Number of
customers
 Size of order
from customers
 Low
switching cost
 Differences
between
competitors
 Price
sensitivity
 Variety of
services
 Buyers’
ability to substitute
 Switching
costs
 Buyers’
information

availability
Threat of Substitution  Aerated drinks,
beverages, juice
centres, tea shops
etcetera.
 Number of
substitutes available
 Buyer
propensity to substitute
 Fast food
points such as
pizza hut,
McDonalds,
dominos etcetera.
 The relative
price performance
of substitute
 Hang out
places such as
Hukka parlours,
Bistro etcetera.
 Perceived
level of
differentiation
The threat of New Entry  Government
policies promoting
foreign direct
investment
 Barriers to entry
 Capital
requirements
 Access to
distribution channel
 Presence of
already established
brands, hangout
places and other
fast food points
 Economies
of scale
 Cumulative
experience
 The high
cost of starting up a
new coffee shop
 Switching
costs
 Brand
loyalty
 Government
policies
Target market
They will target the market that is up to their needs and demands. Their primary focus is youth
and students and middle-level people. For this, they will use specific strategies and techniques to
attract them. They will also provide additional individual facilities such as magazines, journals,
newspapers at their coffee house to provide entertainment in their waiting time. The market is
also targeted at focusing on various factors such as social, economic and political factors. The
union café and catering will depend on three strategies to target the market that includes
identifying the market, differentiating their needs and demands and analyzing the factors
affecting them (Jebrin, 2018).

Market demographics
Pyrmont:
Figure 1: Pyrmont demographics (Virgin, 2016)
Sydney

Figure 2: Sydney demographics (Nguyen, 2016)
NSW

Figure 3: NSW demographics (Nguyen, 2016)
Pricing
Union café and catering has decided to provide the products and services at an affordable cost to
provide competition to other coffee shops. The cost will be determined by them on the basis of
the actual cost of the product and not on the prevailing rates in the market. They will provide
compare not only the prices of the product but also the best quality products at reasonable rates.
They will also provide exclusive access to some services at no cost. It includes entertainment,
free Wi-Fi, comfortable and calm music etcetera

The Pricing Strategy Matrix
Figure4: pricing strategy Matrix (Huang et al. 2017)
Economic pricing
It is generally useful for those companies who want to keep their overhead expenses low. After
analyzing all the countries, it is found that NSW usually has low prices of their products in
comparison to those which are branded items. This is due to the lack of promotional activities. In
Sydney, the prices of the product are reduced by the fact that it will automatically increase sales.
In Pyrmont, they keep the prices of some products low to give an expression of cheap products.
Hence, this price strategy is useful at the time of economic recession.
Penetration pricing:
This price strategy is based on showing the prices of products lower than they actually are. It is
done with a view of entering into the market. In NSW, they follow penetration pricing as when
customers will be habitual of the product; then the prices can rise slowly. In the starting period,
they offer their products at a low cost, and after some time, prices get increased. In Sydney, they
offer a loyalty card for three to four months with a special discount, and after completion of this
time period, they increase the charges without offering any discount. Customers have no choice
as they start liking the product in such a time period. In Pyrmont, it is done by providing
products at half rate for some months for attracting more customers (Huang et al. 2017).
Price Skimming

This price strategy includes setting up the high price of the products with the view to drop them
later. In NSW, the sellers decide the price at a high cost to reduce them when any new
competitor enters the market. In Sydney, it is done with those products which have some
uniqueness. When the products get old, the price gets reduced. In Pyrmont sellers usually, bring
a new product into the market with high prices and then reduce its price, later on, even all the
producers of the same line reduce the prices (Huang et al. 2017).
Premium pricing
Premium pricing is done with those products which have luxurious value. All three countries
follow premium pricing for highly valuable goods. The customer gets ready to pay due to its
higher quality (Jebrin et al. 2012).
Conceptual map
Figure 5: Conceptual map (Created by author)
Swot analysis
PESTLE anaysis
Competative
analysis
Industry
analysis
marketing mix
market
demographics
Pricing staregy
Market
analysis Quantitative
analysis
Qualitative analysis
Market
research
Sydney maket
feasble for business
establsihment
feasibility
study

Methodology:
Research methodology
Data collection method
The research design of Union Café and Catering was created by using the Primary Data
Collection Methods. ThePrimary Data Collection Methods includes the Qualitative Data
Collection Method and the Quantitative Data Collection Method. In order to answer all the
research related questions for Union Café and Catering, the primary research criteria will be
used. The information and the details collected by using the primary research criteria will help in
creating a base for the organisation. The reason due to which the primary method of data
collection and research is used is that through the primary research the organisation and the
research team will be able to analyze all the facts and figures accurately according to the
requirements (Kumar, 2019).
Quantitative and Qualitative data
Both qualitative and quantitative approaches are used here. Here in this research design, the
mixed approach is used. While analyzing the Feasibility of the Union Café and Catering project,
the organization need to consider and analyze all the facts, figures and numbers along with the
goodwill, customer satisfaction and customer preferences as well (Silverman et al. 2016).
While doing qualitative research, the organization took all the non-quantifiable elements for
understanding the depth of the project. Additionally, with the help of the Quantitative approach,
the measurable factors like questionnaires with closed-ended questions, methods of correlation
and regression, mean, mode and median and others considered. With the help of both the
approaches, the management of Union Café and Catering become able to analyze the feasibility
of the decision concerning all the locations, including Pyrmont, Sydney, and NSW (Flick and U
2015).
Research Approach:
In order to analyse the research findings, the Inductive approach is used. There is no formulation
of hypotheses included in the Inductive Approach. The Inductive Research Approach for the
research design of Union Café and Catering starts with deciding the questions like ‘Will this new
business be gainful in the new location?’ and the second question is ‘Does the peripheral service

of the proposed business uphold productivity?’ Along with the research questions, the
organization also determined the aim and objection. As per the details available, the main aim of
the organization is to check the Feasibility of the Union Café and Catering in Pyrmont, Sydney,
and NSW (Alvesson et al. 2017).
Sampling method:
The sampling method used to complete the research for getting the feasibility of the café is Non-
probability sampling. The samples that are important for getting the feasibility analysis are
human beings (Fletcher, 2017). While doing Non-Probability Sampling, the organization takes a
section of people and asks them questions regarding their preferences, taste and choices. As
stated, that the organization want to open the branches in three different countries, hence it is
essential to know that either the people living in that particular culture, society are willing to
accept a new product or not. Before launching any new product or service, it is essential to know
about the preference and taste of the consumer, only then the feasibility can be achieved.
Data Collection Method:
In order to analyze the preferences, the organization decided to survey the real world. Since Non-
probability sampling is a more conducive and practical method. Hence the resulting figures also
come in the more appropriate format (Walliman and N, 2017). With the help of Non-Probability
sampling, the particular trait or characteristic of the consumers will be analyzed, and on the basis
of consumer traits, the decisions regarding the products taken.
Location Sample size Sample nature
Pyrmont 40 Customers/working
individuals/student
Sydney 40 Customers/working
individuals/student
NSW 40 Customers/working
individuals/student

Quantitative data:
The research tools used in Non-Probability Sampling was questionnaire and surveys. The
organization decided to ask consumers questions regarding their tastes and preferences. For that,
the organization decided to ask 40 customers from each region about their preferences and tastes
(Smith et al. 2015). The researchers ask the consumers to fill the questioners and state their
preference. The type of questions included in the questionnaire:
 Do you prefer office as your favourite drink?
 Do you prefer café ambience over the regular restaurant?
 “I like to go Cafés as preferred shared working place” do you support the
statement?
 How frequent are you in cafes on a weekly basis?
On the basis of answers collected from the 120 consumers, the decisions regarding the feasibility
of café were made.
Data Analysis:
The data gathered after conducting the survey was analyzed by using the Quantitative approach.
By using the quantitative approach, the management gets to know about the frequency of people
who have given definite answers along with the consumers who prefer any other product or
service. Additionally, the themes analysis, frequency distribution, mean-score also helped the
organization in deciding that for which section of individuals, what products will prove to be
suitable (Litosseliti et al. 2018).
Qualitative Data

Interview Questions:
1. How much amount of food will be ordered for Sydney University Functions?
2. How often the seminars, exhibitions, corporate meetings, events, graduation ceremonies
and other functions will be held?
3. What type of food and beverages gets ordered most often?
4. What price should be set for food and beverages?
5. Is there any non-ordering period?
6. Is there any sort of cancellation policy on the orders?
Ethical Consideration
The research plan was designed in such a manner that it does not hurt anyone in any manner. It
will be the priority of the management that the research dignity should be respected. Before
starting the research study, it is essential to have full consent from the participants. Additionally,
it is essential to ensure that research privacy is protected. It is essential to ensure that there
should be an adequate level of confidentiality (Litosseliti et al. 2018). Moreover, the individuals'
and organization’s anonymity must be ensured. It is essential to avoid deception or exaggeration

regarding the objectives and aims of the research. Additionally, the declaration regarding the
Affiliations needs to be done. There should be honesty and transparency in every
communication. Additionally, any sort of misleading information is also required to be avoided.
Research Findings:
Quantitative analyses
Q1: Do you prefer office as your favorite drink?
Pyrmont
Option Response
percentage Responses Total respondents
Strongly disagree 12.50 5 40
Disagree 37.50 15 40
Agree 25.00 10 40
Strongly agree 25.00 10 40
Mean Median Mode SD
10.00 10.00 10.00 4.08
13%
38%
25%
25%
Strongly disgree
disgree
agree
Strongly agree

Graph 1: (Created by Author)
Sydney
Option Response
percentage Responses Total respondents
Strongly disagree 5.00 2 40
Disagree 20.00 8 40
Agree 25.00 10 40
Strongly agree 50.00 20 40
Mean Median Mode SD
10.00 9.00 20 7.48
5%
20%
25%
50% Option
Strongly disgree
disgree
agree
Strongly agree
Graph 2: (Created by Author)
NSW
Option Response
percentage Responses Total respondents

Strongly disagree 5.00 2 40
disagree 35.00 14 40
agree 17.50 7 40
Strongly agree 42.50 17 40
Mean Median Mode SD
10.00 10.50 14 6.78
5%
35%
18%
43% Option
Strongly disgree
disgree
agree
Strongly agree
Graph 3: (Created by Author)
Q2: Do you prefer café ambiance over regular restaurant?
Pyrmont
Option Response
percentage Responses Total respondents
Strongly agree 7.50 3 40
Agree 42.50 17 40
Disagree 25.00 10 40
Strongly disagree 25.00 10 40
Mean Median Mode SD

10.00 10.00 10.00 5.72
8%
43%
25%
25%
Option
Strongly disgree
disgree
agree
Strongly agree
Graph 4: (Created by Author)
Sydney
Option Response
percentage Responses Total respondents
Strongly disagree 7.50 3 40
Disagree 42.50 7 40
agree 30.00 12 40
Strongly agree 45.00 18 40
Mean Median Mode SD
12.50 14.50 18 6.86

8%
18%
30%
45%
Graph 5: (Created by Author)
NSW
Option Response
percentage Responses Total respondents
Strongly disagree 17.50 7 40
disagree 37.50 15 40
agree 20.00 8 40
Strongly agree 25.00 10 40
Mean Median Mode SD
10.00 9.00 15 3.56

1
18%
2
38%
3
20%
4
25%
Graph 6: (Created by Author)
Q3: “I like to go Cafés as preferred shared working place” do you support the statement?
Pyrmont
Option Response
percentage Responses Total respondents
Strongly disagree 15.00 6 40
disagree 35.00 14 40
agree 27.50 11 40
Strongly agree 22.50 9 40
Mean Median Mode SD
10.00 10.00 14 3.37

15%
35%
28%
23%
Graph 7: (Created by Author)
Sydney
Option Response
percentage Responses Total respondents
Strongly disagree 5.00 2 40
disagree 20.00 8 40
agree 25.00 10 40
Strongly agree 50.00 20 40
Mean Median Mode SD
10.00 9.00 20 7.48

5%
20%
25%
50%
Graph 8: (Created by Author)
NSW
Option Response
percentage Responses Total respondents
Strongly disagree 5.00 2 40
disagree 40.00 16 40
agree 25.00 10 40
Strongly agree 30.00 12 40
Mean Median Mode SD
10.00 11.00 16 5.89

5%
40%
25%
30%
Graph 9: (Created by Author)
Q4: How frequent are you in cafes on a weekly basis?
Pyrmont
Option Response
percentage Responses Total respondents
Strongly disagree 12.50 5 40
disagree 37.50 15 40
agree 25.00 10 40
Strongly agree 25.00 10 40
Mean Median Mode SD
10.00 10.00 10.00 4.08

13%
38%
25%
25%
Graph 10: (Created by Author)
Sydney
Option Response
percentage Responses Total respondents
Strongly disagree 12.50 5 40
disagree 25 10 40
agree 25.00 10 40
Strongly agree 37.5 15 40
Mean Median Mode SD
10.00 10.00 10.00 4.08

13%
25%
25%
38%
Graph 11: (Created by Author)
NSW
Option Response
percentage Responses Total respondents
Strongly disagree 25.00 10 40
disagree 25.00 10 40
agree 37.50 15 40
Strongly agree 12.50 5 40
Mean Median Mode SD
10.00 10.00 10.00 4.08

1
25%
2
25%
3
38%
4
13%
Graph 12: (Created by Author)
On the basis of the above schedule and graphs, it has found that people of Sydney prefer
more of black coffee as compared to NSW or Pyrmont. As black coffee is a common
commodity, it results in following penetration pricing strategy by lowering down the cost of
other overhead expenses to reduce the cost of black coffee. When people were asked about
their preference of café over the restaurant, the best results are found in Sydney over NSW
and Pyrmont. It shows more chances of successful café in Sydney. More people of Sydney
respond with strongly agree while people of NSW and Pyrmont respond as agree and
disagree.
Seeing café as the shared working place is more in Sydney with 50% respondents while in
NSW and Pyrmont, it is only 22% and 35 %. 30 % and 40% people of NSW and Pyrmont
disagree with this thought and do not prefer café as a shared working place. 37.5% of people
of Sydney visit café on a weekly basis while people of Pyrmont prefer visiting in café at only
12.5 %, but this ratio is only 25% in the case of NSW. This shows more chances of getting
more customers in Sydney as compared to NSW and Pyrmont.
Hence all these ratios and percentages show more chances of setting up the café in Sydney as
compared to NSW and Pyrmont. This is because more people of Sydney visit café on a

regular basis and also see café as preferred shared working place. This increases the chances
of better growth of café in Sydney over to NSW and Pyrmont. Also, the people of Sydney
give more votes to café as compared to the restaurant. This decision can also be taken on
behalf of the mean, median, mode and standard deviation found. Mean helps in making a
comparison of different sets of data and helps in representing the universe of statistical data
while the median represents central value. It helps in representing the most number of people
from the total respondents. Mode represents a maximum number of responses and the
standard deviation is used to compare the variations in the data. Also, the penetration pricing
strategy will be suitable in Sydney as they prefer black coffee more in comparison to other
drinks, and this drink is a very common commodity.
Qualitative Analysis:
Q1: How much amount of food will be ordered for Sydney University Functions?
Manager said:
“Sydney university functions order approximately 500 cups of cappuccino, 200 cups of cold
coffee, 300 cups of lemon tea and 200 cups of other drinks. It also orders some food items which
include 300 packets of cookies, 100 brownies, 500 plates of snacks, 150 packets of nuts, 250
cupcakes, 500 sandwiches along with other light items. It also orders 1000 mineral water bottles
to serve to every participant in the function.”
Q2: How often the seminars, exhibitions, corporate meetings, events, graduation
ceremonies and other functions will be held?
Manager replied:
“Every year there occurs many exhibitions and seminars in different departments of Sydney
University. The frequency of all these events depends on a particular time. As the frequency of
seminars is more during the admission time while corporate meetings held during examinations
more. Graduation ceremonies occur only one time that is at the end of the year when the session

gets over. Seminars are held for two times per year while exhibitions are held two times a year.
Corporate meetings are held every third month, and there occur any other mall functions per
month.”
Q3: What type of food and beverages gets ordered most often?
Manager said:
“There are various kinds of order that union café and catering receive during from university.
Espresso, cappuccino, hot coffee, ice tea, lemon tea, cold coffee and black coffee are the most
popular beverages that are ordered from them. Along with these drinks, some brownies, cookies,
snacks, nuts, cracks, cupcakes, sandwiches etcetera. Mineral water bottles are also ordered from
the university to the cafeteria.”
Q4. What price should be set for food and beverages?
The manager promptly replied:
“Every food item at the cafeteria comprises of different price strategy. This price strategy
follows only for the university as it includes discounted rates per item.
Cappuccino - $3
Espresso - $4
Cold coffee - $3.95
Lemon tea - $3.62
Hot coffee – $3.73
Ice tea – $3.63
Black coffee – $3.35
Brownies – $ 5
Cookies – $ 4.5

Nuts – $ 5.5
Snacks – $ 6.73
Cracks – $ 2.56
Sandwiches - $4.35
Q5. Is there any non-ordering period?
Manager’s Reply:
“Many times, the amount of order from Sydney university gets reduced. This period is known as
a non-ordering period. This is due to many reasons, such as semester breaks or any festive
season. During the semester break, all the students get a break for a month, which resulted in a
reduced number of students in the university and hence fewer orders. Also, during any festive
occasion, students get busy in preparing for the festival and hence do not attend the college
much. During that time also, they get fewer orders from students and this result in less
productivity of their products.”
Q6. Is there any sort of cancellation policy on the orders?
One order got cancelled during the corporate meeting that was going to be held in the month of
January this year. The order was given two days before the meeting, which included coffees and
cookies. Everything was prepared, and all the material for the order was collected properly.
However, a day before the meeting it got cancelled as the meeting was postponed for the next
week. It was high time as all the food items were purchased in bulk to meet out the order. Also, it
was not a small order and comprised of a huge amount of investment.
Discussion
On the basis of the qualitative and quantitative analysis, it is found that when people of Pyrmont
are asked about the preference of black coffee, out of 40 respondents, five strongly disagreed, 15
disagreed, ten agreed while 10 strongly agreed with the fact that they prefer office as their
favourite drink. However, 37.5 % of people do not agree with this fact. Hence on the basis of

median, mode, mean and standard deviation, it is analyzed that Pyrmont is not a good option to
start café and catering (Mialon et al. 2016).
When this analysis was done in Sydney, 5% strongly disagreed, 20% disagreed, 25 % agreed,
and 50% agreed for preferring office as their favourite drink. This percentage represents 2
respondents, 8 respondents, 10 respondents and 20 respondents out of 40 respondents,
respectively. When statistical data is collected on this basis, it is found that the mean of
respondents was 10, the median was 9, and the standard deviation was 7.48. The mode was
calculated as 20, and hence, it is found that Sydney can be a good option for starting union café
and catering as a new venture (Jebrin, 2018).
When people of NSW were questioned, they responded with not so good results. Out of 40
people, 2 respondents strongly disagree, 14 people responded as disagree, 7 people, replied in
agreed response and 17 people strongly agreed. This represented 5% as strongly disagreed, 35%
as disagreed, 17.50 % as agreed while 42.50 as strongly agreed on results. When mean, median,
mode and standard deviation of respondents were calculated, they were calculated as 10, 10.50,
14 and 6.78 respectively. However, this percentage was not enough to decide NSW s the chosen
location for union café and catering (Hofstrand et al. 2009).
When people of Pyrmont are asked about their response related with their preference of café
ambience over regular restaurant 7.505 people strongly agreed with café which represents 3
residents, 42.50 % people agreed with café representing 17 respondents, 25% people disagreed
representing 10 respondents while 25% people strongly disagreed with café preference
representing 10 respondents. In total 40 respondents were questioned, and when statistical data
was calculated, it was found that mean it was 10, the median was 10, the mode was also
calculated as 10 while standard deviation as 5.72. hence on the basis of these data, it is analyzed
that Pyrmont will be not a good idea to start café (Jebrin et al. 2012).
When people of Sydney were asked about their preference of café ambience over the regular
restaurant, 7.50% people strongly agreed, 42.50 % people agreed, 30% people disagreed while
remaining people strongly disagreed café over the regular restaurant. Since 3 people out of 40
strongly disagreed and 17% agreed but those who strongly agreed for cafe were more than
disagreed one hence on the basis of mode that was calculated as 18 and other statistical data of

mean, median, mode and standard deviation that are 12.50, 14.50 and 6.86 it is analysed that
Sydney can be a good location for the new venture to start up (Huang et al. 2017).
17.50% people of NSW strongly disagreed, 37.50 % people disagreed, 20% people agreed and
25% people strongly disagreed with the ambience of café over the regular restaurant which
represents 7 respondents as strongly disagreed and 10 as strongly agreed while 15 respondents
disagreed and 8 agreed with the preference of café over the regular restaurant. Mean was
calculated as 10, median as 9, mode as 15 while standard deviation as 3.56 which represents
NSW will not be a good location in the context of setting up new café there (Pagotto et al. 2016).
In the context of going to café as preferred shared working place, Pyrmont people were
questioned and responded as 15% strongly agreed, 35% disagreed, 27.50% agreed, and 22.50 %
responded as strongly agreed. It represents 6 respondents, 14 respondents, 11 respondents, and 9
respondents. Since a number of people disagreed and statistical data also did not show good
response representing mean like 10, median as 10, mode as 14 and standard deviation as 3.37
hence, Pyrmont people will not prefer new café as their favourite place.
When people of Sydney were asked about café as their preferred shared working place 2
responses were in strongly not in favour, 8 responses were also not in favour, 10 responses were
in favour while 20 people were strongly in favour. 50 % of respondents were strongly in favour,
while 5 % were strongly not in favour, which represents a good location to be chosen. Mean was
found as 10, median as 9, mode as 20 while standard deviation as 7,48 (Higgins-Desbiolles et al.
2017).
30% of people of NSW were strongly agreed with café as preferred shared working place while
5% strongly disagreed. 40% of people disagreed while one-fourth people agreed with this fact.
All this represents as 16 respondents in disagreed favour, 12 in strongly agreed one, 10 in agreed
response and 2 as strongly disagreed. Mean was found as 10, median as 11, mode as 16 and
standard deviation as 5.89, which represents NSW not a good location for union café and
catering to get started.
When people of Pyrmont was asked about their weekly visit in cafes mean of respondents were
found as 10, median as 10, a mode was also 10 and standard deviation as 4.08 which represents
12.50 % people strongly disagreed, 37.50% disagreed, 25% agreed and remaining one-fourth

people as strongly agreed. This percentage was a representation of 5 respondents as strongly
disagreed, 15 as disagreed, 10 as agreed and 10 as strongly agreed. All these data represented
Pyrmont as not a good location for locating new cafeteria.
Response for café as preferred shared working place was evaluated as 12.50 % people
representing 5 respondents out of 40 respondents as strongly disagreed one. This ratio was one
fourth as disagreed representing 20 people in agreed favour while the same proportion agreed for
café preference as a shared working place. This constituted 10 people, while 15 people
representing 37.5% people strongly agreed with café as a shared working place in Sydney. As
statistical data represents the high number of people in favour of café with mean as 10, median as
10, mode as 10 and standard deviation as 4.08, hence on the basis of this data it can be said that
Sydney can be a good location for setting up café and catering (Williams, 2017).
Also, people of NSW were questioned for their preferred shared working place they responded
as 37.50 % people in agreed response with 15 people out of 40; one-fourth people responded as
strongly disagreed and same in disagreed response representing 10 people for both responses.
12.50 % of people responded in strongly agreed favour including 5 respondents, but the
proportion of agreed one was lower than those in Sydney. Also, mean, median and mode were 10
while SD was 4.08; hence, it is also not a good location.
On the basis of the above data, it is decided that feasibility of the business plan related with
location of the union café and catering can be decided with Sydney as the best location as it has
all those required availabilities which are essential for the growth of a coffee business (Pagotto et
al. 2016).
Recommendation
On the basis of all analysis, some recommendations are provided to union cafeteria and catering.
As the cafeteria has some doubt related to the feasibility of the location, here are some
recommendations.
Demographics

It is suggested to focus on the crowded area when deciding a particular location for the business.
However, the crowd must be based on a targeted demographic. In comparison to other countries,
Sydney must be chosen with targeted customers, and all the decision related to location must be
taken with this regarding this location. To determine the best location of the shop; customers
must be analyzed. Understanding the targeted market can help the cafeteria to decide the best
location for them.
Neighbouring businesses
It is also recommended to analyse the nearby businesses of the region to determine the location
of the cafeteria. This is because neighbouring businesses can have both positive and negative
effects on working. On comparing all the three countries, it is suggested to choose Sydney as a
region to locate the business. All local coffee shops in nearby areas must be researched to find
the best location for the cafeteria. Standard of the neighbouring countries must also be analysed
to decide the location.
Accessibility
Allowances for customers must be made by the cafeteria to stop customers from being moving to
other coffee shops. Locating the business at a place that is accessible to customers can help in
growing production and growth of a business. Hence it is recommended to locate the business at
a place that can be easily accessed by all the targeted customers. It is suggested to locate the
cafeteria at the centre of the city.
Building infrastructure
Building infrastructure must always be according to the number of customers in the desired area.
The space for the customers must not be overcrowded, and it must contain all the desired fittings
and infrastructure. The coffee shop must be fitted with big soft chairs and small tables along with
music system to make the surroundings calm. Also, it is suggested to set up the fittings in such a
way that it provides proper space to baristas to move freely.
Terms of the lease

When it comes to mind about setting up the business first thing that came in mind is whether it
can be affordable or not? Hence selecting a very costly location is not a good option. It is
suggested to check out the location of the business to find out the renovation requirements.
Along with the cost of the place, there are some other terms also that can be determined before
choosing any location. These are:
 Length of the lease: As it is not possible to change the terms or breaking the commercial
lease, hence this must be kept in mind before making any agreement for the place.
 Rent increment: Most of the landlords review their rent rates every five years. The
location must be decided after reviewing the rent rates of the location in various countries.
Sydney must be chosen for locating any coffee café as the rent rates are reasonable here.
 Insurance requirements: Some lease requires insurance coverage while selecting any
place for the business. Hence all these requirements must be checked out properly as it led to an
increase in the overall cost of the business and hence have a significant impact on the cost of the
product.
 Security deposit and conditions for its return: It is essential to understand the security
money deposition before taking any place on rent. It is analysed that Sydney has the least
security money conditions as compared to other countries and also fulfil fewer conditions when
the times comes for its return.
 Maintenance and repair terms: It is also recommended to find out the main hand behind
the rented place to check out who will maintain and repair the place in case of any damage to the
place.
Vehicle traffic and parking
To find the best location of the coffee shop; it is recommended to check out the available parking
place for the customers to make them feel comfortable when it comes to parking vehicle. If the
customer is not able to park their vehicles, they will find other cafe options. Hence to neglect
these situations, it is suggested to look for a location with comfortable and convenient parking
place.
Availability of required materials:

Before choosing any location, availability of raw material with great ease must be checked to get
safe in future. Non-availability of the required raw material or any other thing can lead to a
reduction in the production of the products, and hence, customers feel dissatisfaction. Hence
Sydney is a place where all the necessary material for coffee can be easily found out, and there
are no chances of non-availability of the raw material such as coffee beans or milk in future.
Conclusion
On the basis of the study of the feasibility, it was found that on that basis of the location
advantage, Sydney is found to be the best location for starting new cafeteria and catering. This
conclusion has been made on the basis of positive findings and discussion. As the research is
done with the objective of finding the feasibility of the plan according to a particular location;
hence, many problems have been found with different locations. It was found that the trend for
food retailing increase maximum in Sydney as compared to NSW and Pyrmont, which is
approximately 0.2%. After making different analysis such as financial analysis, products and
services, site analysis, market feasibility, competition and consumer behaviour it has been
concluded that Sydney would be the best location for the union cafeteria and catering. The
research is done with the aim of determining the new trends in hospitality for café services and
catering in Pyrmont, Sydney, in NSW to find out the best location among these three countries.
Also, it was done with the aim to find out the market niche for union café and catering. Hence,
after conducting an interview with an industry expert and some respondents, it is found that it
will be more suitable and profitable to start the venture in Sydney as it has more scope there.
The decision was taken after taking much analysis such as market analysis, swot analysis,
competitor analysis, target market, consumer behaviour analysis and industry analysis. Swot
analysis helps to understand the strengths and weaknesses of all countries mentioned above and
also presented opportunities and threats related to to the location. This analysis helps the
researcher to take a decision as Sydney has more opportunities than threats, hence it will prove to
be good for the business. pest analysis showed a smaller number of constraints in Sydney than
NSW and Pyrmont, and also 7 Ps explained more opportunities in Sydney.

Hence it is concluded that for starting up a new café such as union café and catering, Sydney
would be the best location in the context of opportunities and strengths. This place has fewer
risks and constraints and also has a strong market to trade in. it will also provide less competition
and more customers than in other countries and also have more growth chances and more
productivity. The raw material is also available in bulk and laws and policies are not very strict.

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