An Analysis of the Hospitality Industry: Good Times Cafe and Bar

This report provides a comprehensive analysis of the hospitality industry, specifically focusing on the development of Good Times Cafe and Bar in Melbourne. The report covers various aspects, including industry positioning, business segments (cafe and bar), market analysis (demographics, target market, and competition), barriers to entry, and relevant regulations. It delves into concept development, mission statements, and the proposed menu and wine list. The report also outlines the cafe's service style, sustainability initiatives, purchasing, production, and storage strategies, along with a detailed marketing strategy, budget, and staffing plan. The analysis includes a breakdown of staff roles, required skills, employee awards, funding acquisition, and projected profitability timelines. Overall, the report offers a detailed business plan for Good Times Cafe and Bar within the competitive Australian hospitality landscape.

AN ANALYSIS OF THE HOSPITALITY INDUSTRY: GOOD TIMES CAFÉ AND BAR 1
An analysis of the Hospitality industry: Good Times Café and bar.
Student Name:
Institution of affiliation:
Professor:

AN ANALYSIS OF THE HOSPITALITY INDUSTRY: GOOD TIMES CAFÉ AND BAR 2
Table of Contents
Introduction....................................................................................................................................3
Good Times Café and bar.............................................................................................................3
Industry positioning...................................................................................................................3
Business segment............................................................................................................................3
Market analysis..........................................................................................................................4
Demographics and segmentation..........................................................................................4
Target market.........................................................................................................................4
Competition.............................................................................................................................5
Barriers to entry.....................................................................................................................5
Regulations:............................................................................................................................6
Concept development....................................................................................................................6
Mission statement.......................................................................................................................7
Menu and wine list.........................................................................................................................7
Coffee by Code Black: Breakfast..............................................................................................7
Wine list......................................................................................................................................8
Style of service............................................................................................................................8
Sustainability initiative..................................................................................................................9
Purchasing production and storage.............................................................................................9
Production...................................................................................................................................9
Service systems...........................................................................................................................9
Storage.......................................................................................................................................10
Keeping Track of purchasing and storage................................................................................10
Marketing strategy......................................................................................................................10
Budget and staffing......................................................................................................................13
List of people in the business...................................................................................................13
List of skills...............................................................................................................................14
The Award My Employees will fall under.............................................................................14
The expected budget................................................................................................................14
How I will acquire the funds...................................................................................................15
The duration will take before I start making a profit..........................................................15
Conclusion....................................................................................................................................16
References.....................................................................................................................................17

AN ANALYSIS OF THE HOSPITALITY INDUSTRY: GOOD TIMES CAFÉ AND BAR 3
Introduction
The Hospitality industry in Australia faces a lot of competition. This is because there are
many restaurants, entertainment joints, bars and cafes which offer similar services. However, if a
company devises innovative operational strategies, then it may remain competitive in this
industry, (Ren et al., p. 13). In this report, the development of a new Café and bar called Good
Times Café and bar have been discussed.
Good Times Café and bar.
Good times Café and bar will be located in Federation Square, in Melbourne town. It will
provide delicious meals, coffee, tea and snacks for people living in Melbourne. The café will
major in providing customers with delicious meals and drinks at high prices. This will make the
customers derive a value for their money.
Industry positioning.
Positioning refers to the place a specific brand occupies in the mind of the customers,
(Nunkoo et al., 2013, p. 269). To develop a market position, Good Times’ meals will be different
from those of their competitors, as they will be delicious and unique. The café will develop a key
position in the hospitality industry as it will be known for providing nice delicious meals
prepared by highly qualified cooks.
Business segment.

AN ANALYSIS OF THE HOSPITALITY INDUSTRY: GOOD TIMES CAFÉ AND BAR 4
Segments are positions that businesses occupy in the society, (Brotherton, 2012, p. 24). A
particular segment must align with the nature of the business, (Borland & Lindgreen, 2012, p.
174). Good Times Café and bar will provide both foods, coffee, wines and beer. It will,
therefore, occupy two business segments- bar and café.
Market analysis.
The cafes, coffee shops, and bars have grown over the years in Australia. The growth has
been necessitated by Australia's love for quality coffee, beer and wines and a vibrant coffee
culture. The Café industry revenue is therefore expected to grow by 7% annually, amid high
competition between several cafes, coffee shops, and bars, (Esi, 2014, p. 32). This means that for
a company in this sector to be competitive, it must major on its strengths, improve on its
weaknesses, eliminate the threats and execute any opportunity for improvement. A proper
analysis of the Australian market can be achieved by adopting the following plan:
Demographics and segmentation.
According to the results of the 2016 Census, the Australian national population was 24.4
million people. Out of this population, 19.05% lives in Melbourne, which is 4.5 million people.
Since Good Times Café and bar will target customers living in Melbourne, it has an advantage as
the large population acts as a potential market for its beverages and foods. The café will also
target customers of all age brackets, from youths to adults. People who love coffee and wines are
the best targets for this firm.
Target market.

AN ANALYSIS OF THE HOSPITALITY INDUSTRY: GOOD TIMES CAFÉ AND BAR 5
After dividing the market into different segments, a company should target a specific
market segment, (Morgan et al., 2012, p. 271). Segmentation may be behavioral, demographic or
geographic. Good Times Café and bar will mainly target the following customers:
People living in Melbourne city, they go to work and prefer taking lunch in town.
People living in Melbourne city, they go to work in the morning and prefer taking delicious
breakfast in town.
People living in Melbourne working or not working and prefer taking beer or wine in the
evening in town.
Competition.
The Australian café and bar sector faces a lot of competition since there are many hotels,
coffee shops, wine joints and bars in Melbourne and other towns, (Lefebvre, 2012, p. 119). This
is shown in the following statistics:
Café/ Restaurant Location
The Hardware Societe Melbourne
Brunetti Melbourne
The Grain Store Melbourne
Operator 25 Melbourne
1932 Café and Restaurant Melbourne
Brother Baba Budan Melbourne
Barriers to entry

AN ANALYSIS OF THE HOSPITALITY INDUSTRY: GOOD TIMES CAFÉ AND BAR 6
Barriers to entry refer to the restrictions faced by companies in their attempts to enter the
market, (Teng et al., 2012, p. 199). These restrictions are mainly posed by competitors. For
instance, the Café and bar sectors have been crowded by several players, making it difficult for
new firms to enter the market. This may also be a potential barrier for Good Times Café and bar.
Regulations:
Regulations are restrictions put in place by the government to control trade, (Same &
Larimo, 2012, p. 10). The regulations in Australia regarding wine and alcohol selling and
drinking are strict. This will influence Good Times Café and bar’s operations as it will sell a
wide range of wine and beer. Melbourne is found in South Australia, and regulations guarding
the drinking of alcoholic beverages and drinking age are derived from the Liquor Licensing Act
1997, (Morgan et al., 2012, p. 271). The current drinking age in Australia is 21 years. The bars
and cafes are not allowed to sell alcohol to people below this age.
Concept development.
A business concept development may involve coming up with a business idea, which
includes a product or a more innovative way of doing business, (Huang et al., 2012, p. 322).
Good Times Café and bar will have a detailed website where customers will be able to view the
drinks available and their price, wine and beer brands and their prices and descriptions of
delicious meals available in the café.
The café will also create a portal, where customers can log in, view available wine
brands, meals and coffee and make orders. This is an innovative way of handling customer’s

AN ANALYSIS OF THE HOSPITALITY INDUSTRY: GOOD TIMES CAFÉ AND BAR 7
orders as it will ensure customers’ orders are received and processed in time. Customers will also
have an option of requesting delivery of meals to their premises. This will ensure customers do
not waste time walking into the café to pick their orders.
.
Mission statement.
The main reason why this café will be developed is to enhance customer convenience,
and ensure efficiency in processing and delivering customers’ orders through use of technology.
Menu and wine list.
A menu is a list of meals and drinks available in a restaurant, hotel or café, (Bray &
Macneil, 2012, p. 333). The sample menu for Good Times Café and bar is as listed below:
Coffee by Code Black: Breakfast
Coffee and tea REG LG
Café Latte 4.3 5.9
Cappuccino 4.3 5.9
Bonsoy milk available 4.3 5.9
Long Black 4.3 5.9
Affogato Espresso with vanilla ice cream 4.3 5.9
Hot Chocolate with house-made Cadbury chocolate sauce 4.3 5.9
Chai Latte 4.3 4.3
Flat White 4.3 5.9
Mocha 4.3 5.9
Espresso / Short Mac 4.3 5.9
Long Mac 4.3

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Wine list.
White wine GL BTL
Clare Valley, SA 9 42
House White 8.5 35
Summer Poppy Sauvignon Blanc 9 42
Jack & Jill Chardonnay 10 47
Mister Fox Moscato 9 35
Bellarine Peninsula, VIC 10 47
Central Victoria, VIC 9 35
Marlborough, NZ 9 42
La Linda Riesling 9 42
Style of service
Service styles refer to methods used to ensure that customers get their orders in time. In
Good Times café, Plated (American) Service style will be used. This is a service style whereby
Customers enter the Café and sit, Foods and drinks are pre-portioned in the Kitchen, put in plates
and served by waiters and waitresses from the left. Beverages are then served from the right.
Used plates and glasses are removed from the right, (Ren et al., 2016, p. 14). This style is very
economical, efficient and controllable.

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Sustainability initiative.
The main aim of a green initiative is to offset greenhouse gases that may be emitted as a
result of particular business operations, (Ren et al., 2016, p. 22). Good Times café and bar will
major on using solar energy so as to prevent the emission of gases into the atmosphere and also
reduce the costs of operation.
The company will use solar photovoltaic systems in its operations. Solar panels will be
fitted in the café, which will be used to provide light to the customers, run solar cookers, fridges
and other administrative systems in the café. Using solar Cookers will ensure no gases are
emitted into the atmosphere. Trees will also be planted in the whole compound so that it remains
cool and ensure the environment is conserved.
Legal obligations for storage, food production, and service systems.
Food safety standards should be followed as outlined in the Food Standards Australia New
Zealand (FSANZ).
Purchasing production and storage
Production.
Australian laws require food-producing entities to produce foods that are safe and
suitable for eating, (Bray & Macneil, 2012, p. 335). They mainly emphasize on health and
hygiene of the food handlers. People who prepare foods in the hotels must be of good health; that
is free from foodborne diseases.
Service systems.

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Food handlers should be healthy, clean and should not be carriers of foodborne diseases,
(Bray & Macneil, 2012, p. 335). Therefore, food handlers must ensure they receive regular
checkups and get authorization from health experts to handle foods in the café.
Storage.
Potentially hazardous foods must be kept under temperature control, (Bray & Macneil,
2012, p. 335). These foods include dairy products, seafood, cooked rice, and pasta, cooked and
raw meat or foods with meat contents like curries among other foods.
Keeping Track of purchasing and storage.
Proper stores control and management ensures that stock records are accurately recorded
to eliminate instances of unplanned stock outs, (Teng et al., 2012, p. 200). To keep track of
purchases in the Café. I will conduct regular stock takes, whereby I will record the quantity,
quality, and prices of the stocks available. I will also install SAP ERP system, which will enable
me to track my client's orders and manage all the stock operations in the café.
Marketing strategy.
Price: This is the value attached to a product, (Huang et al., 2012, p. 333). The Prices of
the meals and wines will be shown in a menu. As shown below:

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Product: This is the market offer, (Huang et al., 2012, p. 333). Good Times Café and bar
will deal in wines, beer, breakfast lunch and dinner meals. A photo of wine is shown below:
Place: Place refers to the location of the business and the destination of its products,
(Huang et al., 2012, p. 333). Good Times café and bar will be located in Melbourne City. A
photo of Melbourne city is shown below:

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Promotion: This refers to the tactics used by firms to persuade customers to buy their
products, (Huang et al., 2012, p. 333). In ensuring that Good Times Cafe and bar receives
customers, I will conduct online advertisements on Facebook, using posters and through the
website. A photo of an online advertisement is shown:
Level of service: the level of service depends on the firm's policies, (Huang et al., 2012,
p. 333). There are firms which offer after sale services. Good Times café and bar will offer free
coffee for those who come for dinner, and a free Package for those who buy take-home foods.
This is an after sale service.