Critical Analysis and Evaluation of the Café Industry in Melbourne

This report critically analyzes the café industry, focusing on its growth and potential within Australia, particularly in the context of Melbourne. It begins with an introduction to the industry's rapid expansion and the factors driving its success, such as quality products and convenient locations. A SWOT analysis is conducted to evaluate the strengths, weaknesses, opportunities, and threats of café businesses. The report identifies target audiences, including youth, couples, and business professionals, highlighting their preferences and needs. It then explores the challenges and opportunities related to location, kitchen and FOH setups, menu implementation, and staffing. The analysis emphasizes the importance of adapting to customer preferences and maintaining high standards. The report concludes by summarizing the key findings and emphasizing the potential for growth in the café sector through quality service and strategic planning. References from academic journals and industry reports support the analysis, offering a comprehensive overview of the subject.

ANALYSIS EVALUATION OF FOOD AND
BEVERAGE CONCEPTS AND MARKETS

Contents
INTRODUCTION.................................................................................................................................3
SWOT ANALYSIS...............................................................................................................................3
TARGET AUDIENCES........................................................................................................................4
CHALLENGES AND OPPORTUNITES.............................................................................................4
CONCLUSION.....................................................................................................................................5
REFERENCES......................................................................................................................................6

INTRODUCTION
In this report, the matter related to food and beverages is examined through
undertaking the concept of the café industry. This is one of the fastest growing sectors in
Australia due to proving the quality products with best pricing services. Usually people are
attracted if they find the verified café shops near to the places. The most preferences of the
café which is chosen by the people is relating to finding the café mid in the cities which is
easily reachable by any person (Prowse and et.al., 2018). This is the best mode in which the
people can expand the business through bringing new concepts in the food and beverages
industry. This industry is considered to be one of the fastest growing sectors in the field of
food and beverages.
SWOT ANALYSIS
By conducting internal analysis of the café industry, it results in determining the
strength, weakness, opportunities and threats of the business which results in sustaining the
business in market for longer way.
Strength: The major strength which the café carries is relating to carrying the unique concept
or theme to establish the café. Thus, resulting in gaining lot of attention and demand from the
customer regarding availing their services in better way. Another strength which the café
carries is of situating the café in the mid of the places, so that it is easily reachable by any
persons and also they can get frequent and easy transportation facility (AUSTRALIA
COFFEE MARKET TRENDS AND FORECASTS (2020 - 2025), 2020). The café is to be
operated at lowering cost and also the management is to be undertaken in right manner. It
carries broader range of skills which is individually performed by the owners such as role of
HR, accounting, finance and marketing of the café. The café can get easily publicity if they
bring up with innovative concept and also provide quality services to the customers.
Weakness: The weakness which is faced by the café is relating to facing issues in building
the customer base. As customer are not easily attracted to the new cafe and thus it is tough for
the café to attract the customer towards the business. To establish this business is very
expensive as lot of accessories, games and kitchen equipment are to be purchased to make the
café unique and different from others (Amir and et.al., 2017). The major weakness is faced
by the owner of the café as they carry no experiences in managing the café as per the set
demands of the customers. In respect of not bringing any innovative ideas in café, it results in
not retaining the customer interest for the longer time period.
Opportunities: The major opportunity which is gained to café is relating to conducting the
market research and examining the new concept which is undertaking in market. Through this
manner, they can grab the opportunity in respect of expanding the café in different areas as
well. Café owner gets the opportunity in respect of hiring the different culture people through
adapting various new varieties in food or other ingredients used to produce beverages (Kim
and Lee, 2017). If the café is established with the new concept and also carrying successful
identity in the market, than the chances of opening the new branches is higher.
Threats: The major threats which is faced by the café industry is relating to changes in taste
of the customers. As due to changes in time, the taste of customer are also changing and thus
resulting in distracting the customer interest towards the café for longer way. Another threats

which is faced by the café is relating to the facing lot of competitors in market regarding
opening the café with the same concept (Levin and et.al., 2017). Thus the issues raised
regarding attracting and retaining the customer towards the services for longer way. It also
resulting in causing impact regarding facing limited income to share the market and also
target the market. As this is supported with the concept of marketing in which the owner
spend less in promoting the business through gaining larger gain from the customers.
TARGET AUDIENCES
The reason behind establishing the concept of café is to target the particular segment
or people through which the chances of growth is higher in respect of targeting the whole
market.
Youth: They are the upcoming trends or profits gaining for the business. As they mainly
spend time in café with their friends and also searching for such places where they complete
the project without any disturbances (Higgins-Desbiolles, Moskwa and Wijesinghe, 2019). In
such manner, they mainly search for such places which are reasonable and also the food is
affordable to them. They mainly prefer the quality food with innovative presentation.
Couples: These are also such person which mainly searching for new places where they can
spend time with their partner without any disturbances. The couples are also searching for the
café with innovative interiors and also the food with good quality and affordable pricing (Wu,
2017). Their need is to get private time and also find unique concept in ordering the food.
This desire is not much high but find the café which is registered and also situated in the mid
of the center or in posh area.
Business meeting: They mainly search in the café relating to the finding the silent places and
also the facility of sitting where they can conduct the meeting in simpler way. Their needs is
to get the hygienic places and also higher profile background (Cameron, 2018). Thus, in
respect of establishing the café, it resulting in bringing innovative culture and also all the
facility which is used for the business meeting to conducted in better manner. Their desire is
to get the proper electricity facility in respect of carrying the meeting in right way.
CHALLENGES AND OPPORTUNITES
Locations: The challenges which the café is faced relating to not located in the prime
location. Thus, the challenges occurs in respect of not building the strong base for customers.
In relation to undertaking the concept of opportunities, they can conduct the survey and then
open the new branch of café in respect of attracting the customer for longer way (Lai, Khoo-
Lattimore and Wang, 2018).
Kitchen set ups: The challenges which the café is facing is relating to keeping the place
hygienic and also use the utensils with clean and properly washed. Through this manner, they
retain the interest of the customer for longer duration (Kott, 2017). The opportunities which
they gained through this aspects is relating to attracting more customer towards the café
through dealing in hygienic and quality products to customers.
FOH set ups: The challenges which is faced in café is relating to recruiting the trained person
to handle the queries of the customer in right way. The opportunities which they gained
through this perspective is relating to resolving the queries of customer in better way and also
take feedback to bring changes in their existing café (Smith, White-McNeil and Ali, 2020).

Menu implementation: The challenges which is faced in this aspects is relating to setting the
similar menu for all the category of the person. So that, all the class and category person can
afford the food and prefer the food to retain customers for longer time period. The
opportunity which they gained through this aspects is relating to bringing innovative and
creative ideas in menu to attract the customer towards the café.
Service implementation: The challenges faced in respect of providing speedy delivery of the
products and also attending the customer with patience and listening to the problems which
they are facing. The opportunity which they gained though this manner is relating to
providing guarantee delivery of products within the set time period. Through this manner,
they can satisfy the customer needs and demands in better manner.
Staffing requirements: The challenges which they faced is relating to motivating the
individual to work as a team. As the people not accepting the different culture people and
also not ready to work with them (Needham and et.al., 2019). Thus, it is difficult to keep
every person in same track. The opportunity which they gained is to recruit different culture
people so that they can adapt their taste and culture in café to attract more customers.
Procurement requirements: The challenges faced in respect of changes in climatic condition
or situation arise due to natural calamity. Thus, in such manner, the challenges faced in
respect of keeping the track of number or records regarding availability of the products. The
opportunity which they gained is relating to producing the innovative products or dishes
which results in gaining or attracting larger number of customers. Through this manner, they
can track the availability of the user by promoting the products in market.
CONCLUSION
From the above study, the report concludes the matters relating to the opening the
café with providing the best quality and minimal pricing food and beverages to the
customers. Café is one of the major concept which is majorly expanding in Australia and also
liked by many customers. The reason which is examined from this study is relating to the
getting the café verified from the government and also the food is tested by the reputed
person. This helps in attracting the customer for longer way and also they are finding the café
in the prime location of country.

REFERENCES
Books and Journals
Amir, S. and et.al., 2017. Community-based tourism in Melaka UNESCO world heritage
area: A success in food and beverage sector?. Planning Malaysia. 15(1).
Cameron, A., 2018. Affected Labour in a Café Culture: The Atmospheres and Economics
of'Hip'Melbourne. Routledge.
Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2019. How sustainable is sustainable
hospitality research? A review of sustainable restaurant literature from 1991 to
2015. Current Issues in Tourism. 22(13). pp.1551-1580.
Kim, S. H. and Lee, S. A., 2017. Promoting customers’ involvement with service brands:
evidence from coffee shop customers. Journal of Services Marketing.
Kott, S., 2017. The Local Coffee Shop: A Social Enterprise Brewing Java to Cultivate
Community (Doctoral dissertation, North Central College).
Lai, M. Y., Khoo-Lattimore, C. and Wang, Y., 2018. A perception gap investigation into food
and cuisine image attributes for destination branding from the host perspective: The
case of Australia. Tourism Management. 69. pp.579-595.
Levin, H. M. and et.al., 2017. Economic evaluation in education: Cost-effectiveness and
benefit-cost analysis. SAGE publications.
Needham, C. and et.al., 2019. A systematic review of the Australian food retail environment:
Characteristics, variation by geographic area, socioeconomic position and associations
with diet and obesity. Obesity Reviews.
Prowse, R. J and et.al., 2018. Reliability and validity of a novel tool to comprehensively
assess food and beverage marketing in recreational sport settings. International
Journal of Behavioral Nutrition and Physical Activity. 15(1). p.38.
Smith, R. A., White-McNeil, A. and Ali, F., 2020. Students’ perceptions and behavior toward
on-campus foodservice operations. International Hospitality Review.
Wu, H. C., 2017. What drives experiential loyalty? A case study of Starbucks coffee chain in
Taiwan. British Food Journal.
Online
AUSTRALIA COFFEE MARKET TRENDS AND FORECASTS (2020 - 2025). 2020.
[Online]. Available through: < https://www.mordorintelligence.com/industry-
reports/australia-coffee-market>.