Research Project: COVID-19 Impact and Recovery in Coffee Shops

This report investigates the impact of the COVID-19 pandemic on coffee shops, focusing on Starbucks UK as a case study. It examines the concept of crisis management, the consequences of COVID-19 on coffee shop performance and profitability, and the strategies and approaches organizations can use to overcome the negative impacts. The research employs qualitative and quantitative research approaches, utilizing primary and secondary data collection methods, including a questionnaire. Data analysis reveals insights into understanding crisis management, the types of crisis management practices, and the issues faced by coffee shops due to the pandemic, including reduced sales, decreased performance, and changes in consumer behavior. The report concludes by emphasizing the importance of crisis management for enhancing business performance and suggests strategies for Starbucks to effectively deal with the COVID-19 crisis.

Recovery and consequences of Covid 19 in coffee shops

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Literature review..............................................................................................................................2
Research methodology.....................................................................................................................4
Data analysis....................................................................................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
There are different factors of business that is influenced due to Covid 19 pandemic and this will
lead to have major impact on overall performance and productivity of business. It is essential for
an organisation to analyse those factors which is negatively impacting business along with this
consider accurate crisis management practices in order to successfully deal with the issues
(Williams, 2021). This report is based on Starbucks. This is an American company that is a
multinational chain of coffee houses as well as roaster reserves. Head office of starbucks
company is located in Seattle, Washington. This report includes information about crisis
management along with its consequences on business. In this different strategies has been
determined that help in enhancing organisation.
MAIN BODY
Research aims –
To investigate the impact of Covid 19 on performance of coffee shop and crisis
management strategy that will help in enhancing business practices. Case study of Starbucks
coffee shop, UK.
Research objectives –
 To analyse the concept of crisis management.
 To determine different consequences of Covid 19 on performance and profitability of
Coffee shops.
 To evaluate different strategies and approaches of crisis management that could be
consider by organisation in order to overcome the negative impact of Covid 19 on
business.
Research questions –
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 What is the concept of crisis management?
 What are different consequences of Covid 19 on performance and profitability of Coffee
shops?
 What are different strategies and approaches of crisis management that could be consider
by organisation in order to overcome the negative impact of Covid 19 on business?
Literature review
 What is the concept of crisis management?
As per the views of author.. (2021), crisis is characterized as any emergency
circumstance which upsets the representatives just as prompts unsteadiness in the
organization. It has been determined that crisis influences an individual, gathering,
organization or society overall (Wut, Xu and Wong, 2021). A crisis management plan is
a set up process a business follows when managing a problematic or sudden emergency
circumstance. Your crisis management plan ought to be finished preceding emergencies
of business is ready to utilize it to battle and correct any surprising occasions. Crisis
management is the utilization of methods expected to assist an association with dealing
with a sudden and basic unfriendly event. It not really settled that a crisis can happen in
light of a whimsical event or an unforeseeable consequence of some event that had been
considered as a normal risk. Notwithstanding, crises never-endingly require that decisions
be made quickly to confine harm to the association. A business crisis is an occasion that
can possibly compromise the achievement and strength of an organization by discoloring
its standing, harming its business activities, contrarily affecting its funds, or hurting its
representatives. A business crisis can be brought about by something inside or remotely.
Because of the seriousness of a business crisis, it's essential to be ready to oversee one of
these occasions with an arrangement make preceding one really happening.
 What are different consequences of Covid 19 on performance and profitability of
Coffee shops?
According to the views of author (2021) it has been analysed that there are various
consequences of Covid 19 which will lead to impact over performance and profitability of
coffee shops (Burhan and et.al., 2021). It is essential for Businesses should explore the
financial and operational challenges of Covid while quickly tending to the requirements of
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business clients and suppliers. It has been determined that the major consequences of Covid
19 is Reduce sales, Decrease in performance and Lower supply chain as well as change in
behaviour of customers. all of these will lead to have significant impact over profitability and
overall performance of business. The Covid 19 has compelled associations to reexamine how
contact centers are used, how delegates pass on relevant customer experiences, where they
work, and how mechanized stations can be used to help business congruity through the crisis
and then some. It has been analysed that worldwide COVID-19 pandemic has perpetually
changed our experiences as clients, representatives, residents, humans and our perspectives
and practices are changing therefore (Murata, 2021). The crisis is generally changing how
and what customers purchase and is speeding up massive primary changes in the business.
 What are different strategies and approaches of crisis management that could be
consider by organisation in order to overcome the negative impact of Covid 19 on
business?
As per the views of author (2021), it has been analysed that there are different approaches
and strategies which could be consider by organisation in order to successfully overcome with
the negative impact of Covid 19. Crisis management is the most common way of getting ready
for and dealing with any problematic or startling emergency circumstances that influence your
business, partners, representatives, clients, and income (Ardito, Coccia and Messeni Petruzzelli,
2021). Crisis management is a significant part of advertising. Coronavirus has set off a
phenomenal wellbeing crisis in each side of the globe. As the pandemic keeps on spreading
nations are 'learning by doing' on the most proficient method to contain the exceptionally
infectious infection. Simultaneously, this wellbeing emergency has likewise caused an
uncommon monetary crisis. The effect of COVID-19 is felt both on the demand and supply side
all the while. On the other hand, the worldwide financial crisis spread from cutting edge nations
to creating ones through unfamiliar exchange and speculation linkages. The COVID-19 crisis
shows its effect simultaneously both universally and locally. The shocks are more universal as
far as area and enterprises. While demand and supply shocks from cutting edge and arising
nations affect organizations partaking in worldwide supply chains.
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Research methodology
Research approaches – there are different approaches of research which could be classified into
qualitative and quantitative.
 Qualitative research – Qualitative research is a research technique to investigate and
comprehend the implying that a few people or gatherings of individuals think come from
social or human issues. The viewpoint utilized in this review is inductive style, centers
around individual implications, and interprets the intricacy of an issue. Qualitative
research starts in the field which depends on indigenous habitats, not theory. The data and
data that have been acquired from the field are taken for the importance and idea,
introduced in spellbinding insightful and by and large without utilizing numbers.
 Quantitative research – Quantitative research methods underscore objective assessments
and the authentic, mathematical, or numerical examination of data assembled through
overviews, surveys, and studies, or by controlling past quantifiable data using
computational strategies. Quantitative examination bases on friendly event numerical
data and summarizing it across get-togethers of people or to explain a particular
idiosyncrasy . The last made report has a set plan involving show, composing and
hypothesis, strategies, results, and discussion. Quantitative exploration deals in numbers,
reasoning, and an objective position. Quantitative exploration bases on numeric and
consistent data centered reasoning rather than dissimilar thinking.
Data collection methods – data collection is a course of social affair data from every one of
the important sources to track down an answer for the research issue. It assists with assessing the
result of the issue. The data collection methods permit an individual to finish up a response to the
significant inquiry.
 Primary data collection – Primary data is gathered from the direct insight and isn't
utilized previously. The data accumulated by primary data collection methods are explicit
to the research's rationale and profoundly exact and accurate (Mao, 2021). At the point
when the data are gathered straight by the researcher interestingly is called as Primary
Data. It is unique in nature and is explicit to a research issue under study.
 Secondary data collection – Secondary data can't avoid being data assembled by someone
other than the genuine customer . It suggests that the data is presently available, and
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someone examinations it. The secondary data fuses magazines, newspapers, books,
journals, etc. It very well may be either circulated data or unpublished data. It implies the
data accumulated by someone other than the customer for instance the data is currently
open and taken apart by someone else. Secondary data fuse distinctive dispersed or
unpublished data, books, magazines, paper, journals. and so on.
Questionnaire
Name –
Age –
Contact number –
1. Do you have understanding regarding the concept of crisis management.
 Yes
 No
2. What are different types of crisis management practices that will assist business in order
to successfully and correctly deal with the issues.
 Natural disaster
 Technological crisis
 Malevolences
 Organisational misdeeds
 All of the above
3. According to you what are the consequences or issues faced by coffee shops due to
Covid 19 pandemic.
 Reduce sales
 Decrease in performance
 Lower supply chain
 Changes in behaviour of customer
 All of the above
4. Do you think that Covid 19 will lead to have major consequences over performance and
profitability of star bucks coffee shop.
5

 Agree
 Disagree
5. As per your views what are the key changes that has been determined in consumer
behaviour because of Covid 19 pandemic situation.
 Long term social distancing
 Lower customer footfall
 Increase in focus on hygiene
 Less eating out of home
 All of the above
6. According to you what are different strategies and approaches of crisis management that
could be consider by organisation in order to overcome the negative impact of Covid 19
on business?
 Keep healthy and safe coffee environment
 Increase quality control
 Be more client oriented
 Consider new and innovative technology
 All of the above
7. Do you think it is important for Starbucks coffee shop to correctly and accurately manage
crisis in order to enhance overall performance of business.
 Yes
 No
8. According to you what are the different significance of Crisis management practices in
order to successfully and smoothly conduct business practices.
 To face unexpected conditions
 Deal with sudden changes
 Devise strategies
 Attain desired goals
9. Do you have any suggestion for the manager of Starbuck coffee shop in order to
effectively deal with the crisis of Covid 19 as well as improve business performance.
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Data analysis
Theme 1 – Understanding regarding the concept of crisis management
1. Do you have understanding regarding
the concept of crisis management.
Frequency
 Yes 35
 No 5
Interpretation – according to the above collected data it has been determined that most of the
respondents have proper understanding regarding the concept of crisis management. Out of 40
respondents 35 has responded with yes that they have understanding about the concept of crisis
management. Where as other 5 respondents responded with no that they do not have information
about the concept of crisis management.
Theme 2 – Different types of crisis management practices that will assist business in order to
successfully and correctly deal with the issues.
2. What are different types of crisis
management practices that will assist
business in order to successfully and
correctly deal with the issues.
Frequency
 Natural disaster 5
 Technological crisis 5
 Malevolences 5
 Organisational misdeeds 10
 All of the above 15
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Interpretation – It has been determined that there are different type of crisis management
practices that will help business to deal with the issues correctly. In the survey it has been
analysed that out of 40 respondents 5, 5 and 5 feel that natural disaster, technological crisis and
malevolences is the crucial crisis management practices where as other 10 feel that
organisational misdeeds is the most effective crisis management practices. where as most of the
respondents that is 15 feel that all of the above are crucial types of crisis management practices
that will lead to impact over business.
Theme 3 – The consequences or issues faced by coffee shops due to Covid 19 pandemic
3. According to you what are the
consequences or issues faced by coffee
shops due to Covid 19 pandemic.
Frequency
 Reduce sales 5
 Decrease in performance 6
 Lower supply chain 5
 Changes in behaviour of customer 10
 All of the above 14
Interpretation – according to the above collected data it has been determined that there are
several consequences that is faced by coffee shops due to Covid 19 pandemic. It has been
analysed that as per 5, 6 and 5 respondents Reduce sales, Decrease in performance and Lower
supply chain is the crucial issue where as other 10 respondents feel that Changes in behaviour of
customer is the crucial issue. Where as most of the respondends that is 14 feel that all of the
above mention are major consequences of Covid 19.
Theme 4 – Covid 19 will lead to have major consequences over performance and profitability of
star bucks coffee shop
4. Do you think that Covid 19 will lead to
have major consequences over
performance and profitability of star
bucks coffee shop.
Frequency
8

 Agree 36
 Disagree 4
Interpretation – It has been determined that most of the respondents feel that Covid 19 will lead
to have major consequences over performance and profitability of star bucks coffee shop. Out of
40 respondents 36 agrees with the statement where as other 4 disagrees with the statement.
Theme 5 – The key changes that has been determined in consumer behaviour because of Covid
19 pandemic situation
5. As per your views what are the key
changes that has been determined in
consumer behaviour because of Covid
19 pandemic situation.
Frequency
 Long term social distancing 10
 Lower customer footfall 4
 Increase in focus on hygiene 4
 Less eating out of home 6
 All of the above 16
Interpretation – through the above collected data it has been identified that 10 respondents out of
40 feel that long term social distancing is the crucial consumer behaviour changes. It has been
determined that out of 40 respondents 4, 4 and 6 feels that Lower customer footfall, Increase in
focus on hygiene and Less eating out of home is the major consumer behaviour changes. Where
as other respondents that of 16 consider that all of the above mention factor are important
aspects.
Theme 6 – Different strategies and approaches of crisis management that could be consider by
organisation in order to overcome the negative impact of Covid 19 on business
6. According to you what are different
strategies and approaches of crisis
management that could be consider by
Frequency
9

organisation in order to overcome the
negative impact of Covid 19 on
business?
 Keep healthy and safe coffee
environment
5
 Increase quality control 5
 Be more client oriented 5
 Consider new and innovative
technology
5
 All of the above 20
Interpretation – It has been identified that there are different strategies of crisis management that
could be consider by organisation in order to overcome the negative impact of Covid 19 on
business. out of 40 respondents 5, 5, 5 and 5 feel that Keep healthy and safe coffee environment,
Increase quality control, Be more client oriented and Consider new and innovative technology is
the crucial impact of Covid 19. Where as other 20 respondents feel that all of the above are
crucial factors.
Theme 7 – Important for Starbucks coffee shop to correctly and accurately manage crisis in order
to enhance overall performance of business
7. Do you think it is important for
Starbucks coffee shop to correctly and
accurately manage crisis in order to
enhance overall performance of
business.
Frequency
 Yes 35
 No 5
Interpretation – as per the collected information it has been determined that it is important for
Starbucks coffee shop to correctly and accurately manage crisis in order to enhance overall
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