Hospitality Management: Katz Café's Development Plan and Feasibility

This report provides a comprehensive analysis of Katz Café's development plan within the hospitality industry, specifically focusing on its strategy to become a leading coffee group in London. The report delves into the company's initiatives, including offering a diverse range of products like gourmet coffees, organic options, pastries, sandwiches, and entertainment sections to cater to various customer preferences. It explores the feasibility of launching new products, the sustainability of the business model, and the factors that could potentially limit development. The report highlights the importance of understanding market trends, customer choices, and the competitive landscape to achieve success. The report also assesses the strategic importance of the company's plan to offer a variety of products and services in a single location. It also analyzes the company's approach to product launches and its commitment to using tools and techniques to minimize mistakes. The report concludes by highlighting the importance of innovation, customer satisfaction, and adaptability in the competitive hospitality market.

Hospitality
Management

EXECUTIVE SUMMARY
Hospitality industry covers all the business who is engaged in serving consumers with
various accommodation facilities in order to facilitate them with best services during travelling.
However, management of all the activities that is going to incurred while facilitating consumers
are considered as hospitality management. Therefore, main objective of this report is to show the
changes which is going to accomplished by Katz café for becoming a successful leader in coffee
groups at London marketplace. Basically, appropriate steps and procedure which is used by
company is properly explained in the assignment for understanding the technique of improving
organizational performance by satisfying needs of final users.

EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
Development plan............................................................................................................................3
Feasibility of New Product..............................................................................................................5
Sustainability of New Product.........................................................................................................7
Factors limit development of New Product.....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10
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INTRODUCTION
Hospitality management is all about maintaining positive connections between guests and
host by offering various facilities such as; reception, entertainment of guests, food or beverages
and many more. However, number of multinational enterprises emerges in hospitality industry
for facilitating consumers with best services by fulfilling their needs and demands (Kusluvan and
et. al., 2010). Therefore, this assignment is going to highlight the hospitality which is provided
by Katz Café’s in order to become one of the best coffee groups. In fact, an appropriate
development plan of a company will be further explained in the project for understanding the
way company will developed them. Moreover, feasibility of new product which is offered by
company will be outlined in the project as well as ways that is adopted by an enterprise for
sustain at marketplace by satisfying customers’ needs and demands. Lastly, shows the factors
that limit the development of new product which is launched by an organization.
Development plan
Katz Café’s is an organization which engages in designing creative coffee for their
desired customers and wanted to become one of the successful leader in its target market by
offering best or unique products to the whole society. Basically, their main mission is to become
London’s famous leader in coffee market by come up with creative ideas that will capture the
minds of distinct customers. Thus, company have taken numerous of initiatives for improving
their performance and totally focussed in developing their company position by satisfying needs
and choices of final users. For example; creative design in their coffee, offering another
additional products, wide selection and many more. Therefore, Katz Café’s is really making
various development strategies for achieving their set targets in a defined time frame which is; to
become leader in London recognized market because of their unique coffee (Chang, Gong and
Shum, 2011). Hence, Development plan of an organization covers various things which is
discussed as follows-
 Offering mind blowing bagged gourmet coffees across the nation in order to make their
product different their competitors.
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 Additional coffee drinks by coming up with broad alternative options of organic Dutch so
that they company can fulfil various types of unique demands of customers because few
individuals are having totally different choice or preference as compared to others.
 Along with coffee, company have added French pastries also for satisfying the
requirements of few other consumers which might come just have some sweets. Thus,
this option can aid an enterprise in maximizing its sales performance by fulfilling their
requirements of several types of users.
 Moreover, added organic sandwiches, soups and salads for every type of users as a
delight food. However, few consumers come for having their morning coffee so they
might decide to have healthy breakfast by demanding sandwiches. Along with this, some
of health conscious people wanted to prefer salad in morning which is also one of the
beneficial items for company development (Buhalis and Crotts, 2013).
 Meat lovers will have an option, vegans, vegetarians and kids can also have their options
in this Katz Café by exploring entire café as numbers of alternative options are available
for all type of individuals.
After developing the plan of food options and added numerous of alternative materials at
workplace for fulfilling the needs of distinct types of users. As a result, this will help an
organization in maximizing company sales volume by satisfying needs and desires of various
types of consumers. Furthermore, one more thing which is added in development plan of
company that is discussed as follows-
Company have decided to create a separate section for various unique materials such as;
hand crafted objects which are liked by most of the consumers just like artist. Along with this,
Cd’s/DVD’s, covers several types of genres music as well as famous literature and artist books.
This will be really liked by various types of literate people or those people who are artist and
interested in experiencing several unique things. In fact, one of most beneficial thing of
designing hand crafted objects, music’s and books is that these materials are preferred by several
charity enterprise in London. Thus, almost 30% of profits are made by selling craft products and
books for donating to distinct registered charities at London marketplace (Chak-keung and Jing
Liu, 2010). Hence, it has been understood that development plan for Katz Café is all about
launching unique and creative concept for seeking the attention of large number of public and
customers by offering them distinct type of products at single place. This will help an association
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in establishing their goodwill at marketplace by grabbing market opportunities with the
introduction of unique products and items that automatically enhance the business performance.
However, this development plan of an association is really different because lots of changes are
going to conducted by an enterprise coping up with current market trends by understanding
choices and preferences of various type of customers. As, demand and choice of societal
members always fluctuates due to changes in various other factors such as; emergence of large
number of alternative options, competitors unique strategies, attractive interiors of distinct
rivalries, modification in current trends and so on. By assessing all these change, it has been
understood that plan of coming with creative items with large number of option help an
organization in establishing their positive goodwill at competitive environment by fulfilling the
needs of current customers (Yoo, Lee and Bai, 2011).
Consequently, this development plan is somehow beneficial for the success of Katz Café
because creativity is a first or foremost demand of present users because every individual wanted
to experience something new and unique which is totally different from current options. Along
with this, few customers wish to have all the option in a single place for saving their time period
in travelling here and there. Therefore, one of the major advantage of this development plan is
that customers will get various options and choices in a single place such as; sandwiches with
coffee, soups, French pastries, broad selection of organic Dutch and many more items in food
sections (Fantazy, Kumar and Kumar, 2010). Additionally, things get more attractive when the
company have decided to add the entertainment sections for consumers such as; offering Cd’s/
DVDs that include all the music as well as offer famous literature. As a result, this thing
automatically loved by every individual as they will enjoy their time by having food, refresh the
minds with coffee and gain knowledge by reading popular literature.
Feasibility of New Product
Katz café is trying to use number of tools and techniques for proper launch of its new
products at marketplace by considering necessary facts or figures. Basically, company always
tried to reduce possibilities of mistakes by taking proper initiatives and follows suitable stages
while launching their new products at marketplace. However, it is essential to assess all the
necessary factors before introducing its creative product at new market because this will help in
controlling negativity that might incurred. Therefore, Katz Café tries to designed their plans in
proper manner so that company can easily reduce the probabilities of mistakes and easily fills the
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gaps of market which are available at marketplace due to the availability of several competitors.
Thus, company have decided to segregate their strategic business units in various parts for proper
functioning of all the sections of an enterprise (J. Harrington and C. Ottenbacher, 2011).
 Initial strategic organizational unit is that selling of Hand crafted objects.
 Secondly unit of organization strategy is to sell their Cd/DVD’s with creative Music’s
 Third strategic unit of an enterprise is to sell their Literature and art books.
Therefore, this systematic process of selling various organizational products helps in
attaining their set targets by capturing the minds of various customers as per their choice and
preferences. In fact, systematic classification of selling products is really beneficial for
organizational success because it helps Katz café in managing their business operations in much
better manner by understanding choices and preferences of several consumers which are having
distinct choices. For example; few consumers get attracted towards café due to their hand crafted
objects whereas few comes for buying DVD of music as well as some will prefer due to
purchasing literature books. As a result, all of them come at a single place where coffee is also
offering with proper additional foods then they automatically feels to read their books by having
a coffee as well as few just sit at place for enjoying the beauty of music. Hence, somehow
classification of various products helps company in gaining attention of various types of
consumers whose are having interest in three different-different products (Pullman and Rodgers,
2010).
Consequently, company have an option of filling gaps at marketplace because none of
their competitors offer these services simultaneously at single floor which is offered by Katz
Café which is considered as best opportunity for consumers due to the various reasons (P. Crick
and Spencer, 2011). For example; consumers can access number of things at Katz Café that is
described as follows-
 Have a sip of deluxe coffee while listening favourite music.
 Opportunity for identifying or selecting trendy and totally new accessory for loved ones.
 Customers have an option of updating its books as well as musical collection by going
through Katz Café.
 Additionally, users have a great option of having healthy as well as organic vegan and
vegetarian have an opportunity to enjoy vegetarian food.
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Hence, it has been assessed that company have earn their almost 30% of its profit by
selling its handmade items, music, books that will go to registered charities in London. This
shows that company have made their plans and procedure of selling its new product or services
with feasible strategies by considering necessary facts or figures. As a result, company can easily
enhance their performance by fulfilling customers’ needs and demands. In fact, this help an
association in building its positive image at marketplace by grabbing attention of lots of users
which are love to experience new things. Apart from this, one of the major reason due to which
consumer will select Katz café is that they are offering various facilities at single floor that is
accepted by large number of customers (Sisson and Adams, 2013). Meanwhile, objective of
company might also get attained by satisfying user’s requirements as sales volume of company
also get maximized which will be highly beneficial for company success and development. Katz
café have doing number of efforts for designing an appropriate system for selling organizational
newly launched product in order to minimize the probabilities of mistakes. By following suitable
procedure aids an enterprise in performing their all the business operations in better manner by
assigned distinct responsibility to various eligible employees. Along with this, motivate every
individual towards their set targets so that they can accomplish their assigned job in much better
manner.
Sustainability of New Product
Launch of product is not that much typical but maintaining its sustainability at
marketplace is really tough job due to which company have to come up with appropriate
initiatives for maintaining its sales volume. However, company is having number of competitors
which are also coming with distinct options in their coffee shops for gaining competitive
advantage (Tsai, Pan and Lee, 2011). For example-
 Concrete Café whose opening time is from 10am to 11pm expect Christmas.
 Riverside Terrace café whose beginning time every day on 10am till 10:30pm and
located in Royal festival hall, Riverside Terrace.
 Le Pain Quotidien which is located in festival terrace.
All these companies have their own way of running business entities and always tried to
come up with some unique concept or strategy for grabbing large number of consumer attention
in order to maximize their sales volume. Along with this, motive is to defeat their rivalries by
launching something distinct which makes their customer satisfied by fulfilling their needs as per
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their choice or preferences (Hudson, Wang and Gil, 2011). Therefore, first or foremost thing
which company needs to do for sustaining its new product at marketplace is to analyse the
strategy of their competitors for making their plans as per that circumstances. In fact, this will
definitely help Katz café in controlling probabilities of negative influence and regulate
possibilities of heavy loss. Apart from this, company is also having another options for gaining
competitive advantage at marketplace which are described as follows-
Revenue Model of Katz Coffee is most useful option that is used by company for
maintaining sustainability of their existing product or services at marketplace. Thus, this option
support company in various manner which is discussed as follows-
Bagged Coffee Coffee Beverages Local food Hand- Made objects,
music and books
 Company must
have almost
30-45 varieties
of this product.
 Requisite to
have distinct
flavours, brew
strengths and
different areas.
 Specialized
coffee
inventories.
 Cost by pound.
 Cost falls in
between £7.00
to £40.00
pound
 An average
price of coffee
is nearly £15
 Availability of
numerous
varieties in
coffee
beverages.
 Distinct sizes
personalized
cups of coffee.
 Creative
images on
coffee of
customers.
 Price of this
will started
from £2.50
which is of
small size and
around £4.50
for a large cup.
 Offers a
 Direct selling
of food
products.
 Source
locally.
 Organic,
vegan and
vegetarian.
 It includes
various things
such as;
sandwiches,
salads, soups,
pastries and
cookies.
 Directly
selling of
creative
handmade
objects.
 Offering
various genres
musical songs.
 Provides
literature and
artist books.
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per pound. reliable origin
of income.
 Highly
predictable and
very high
margin.
Hence, it has been understood that revenue model of Katz café shows that company have
an objective of providing a niche services to their final users. Initially, company have offered
product in various size personalized cup as per the consumer needs and demand. In fact,
company is not targeting only tourist but also focussing on various business market. Along with
this, company also get engaged in offering delighted with several of hot drinks as well as selfies
have printed on it. Instead of this, most innovative selling point is that every consumer has an
opportunity to select between personalized message or photos (Barber, Deale and Goodman,
2011). Hence, this option can also maximize the customer demand because number of users are
there who want to impress his/her loved ones such as; couples are proposing their partner by
offering a coffee on which I LOVE YOU is mentioned or any other beautiful message. Thus, this
becomes an outstanding reasons for consumers to select Katz café as this company is really
supporting users in various manner. It means, this factors plays a very crucial for organization in
gaining competitive advantage at marketplace and support in sustaining their new product
service by offering innovative facilities to desired consumers.
Factors limit development of New Product
Throughout the analysis, it has been understood that company have number of options for
developing their products and services which is newly offered but there are some factors which
influence in a negative manner. For example; competitor’s strategy plays a major role that limit
the development of newly launched product at marketplace because rivalry companies are also
having their own style of offering coffee at marketplace (Brown, Arendt and Bosselman, 2014).
Therefore, number of other factors is determined by an organization that plays a crucial role in
limiting the development of new product is discussed below-
 Funds are act as backbone for an organization because all the factors are revolve around
availability of sufficient capital. Thus, one of the major elements which act as limitation
8

for Katz café while developing its new product is capital because shortage of fund act as
major obstacle for success of an organization.
 Change in consumer choices and preference also influence an organization in negative
manner because products are finally consume by them only. Therefore, it is essential for
an enterprise to assess the needs and preferences of customers before launching any new
things in order to control possibilities of heavy loss.
 Competitor’s strategy plays a major role in limiting development of newly launched
product of Katz café because emergence of various rivalries influence an association by
minimizing its sales as consume will get another options in coffee. As a resultant, profit
of an organization also get reduced due to minimization of consumers as every individual
will must try to new things (Israeli, Mohsin and Kumar, 2011).
Hence, it has been understood that there are number of options available which act as an
obstacle in success path of Katz café. Apart from all these, there are numerous of internal and
external factors are identified which plays a major role in limiting development of new product
or services. For instance; inappropriate performance of staff members, traditional method of
marketing team or any other factor that might forget by company.
CONCLUSION
From the above report, it has been summarized that launching of new product and
services at marketplace covers an appropriate process as well as increase the responsibility of
company towards their business because number of factors are identified which influence
success of an association in negative manner. Thus, company have to consider all the necessary
elements before launching its products as well as requisite to come up with suitable plans that
will help in gaining competitive advantage. However, main objective of the project is to make
the things clear that an organization have to gone through several complexities for emerging as a
successful leader in overall industry. For example; have creative plans, strategy for systematic
launch, technique of handling competition and many more. Therefore, whole assessment helps in
understanding that by following specific steps and Phases Company can easily manage their
business performance as well as get succeeded in establishing its image at marketplace by
fulfilling consumer needs.
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REFERENCES
Books and Journals
Kusluvan, S and et. al., 2010. The human dimension: A review of human resources management
issues in the tourism and hospitality industry. Cornell Hospitality Quarterly, 51(2),
pp.171-214.
Chang, S., Gong, Y. and Shum, C., 2011. Promoting innovation in hospitality companies through
human resource management practices. International Journal of Hospitality
Management, 30(4), pp.812-818.
Buhalis, D. and Crotts, J., 2013. Global alliances in tourism and hospitality management.
Routledge.
Chak-keung Wong, S. and Jing Liu, G., 2010. Will parental influences affect career choice?
Evidence from hospitality and tourism management students in China. International
Journal of Contemporary Hospitality Management, 22(1), pp.82-102.
Fantazy, K.A., Kumar, V. and Kumar, U., 2010. Supply management practices and performance
in the Canadian hospitality industry. International Journal of Hospitality
Management, 29(4), pp.685-693.
J. Harrington, R. and C. Ottenbacher, M., 2011. Strategic management: An analysis of its
representation and focus in recent hospitality research. International Journal of
Contemporary Hospitality Management, 23(4), pp.439-462.
Pullman, M. and Rodgers, S., 2010. Capacity management for hospitality and tourism: A review
of current approaches. International journal of hospitality management, 29(1), pp.177-
187.
Sisson, L.G. and Adams, A.R., 2013. Essential hospitality management competencies: The
importance of soft skills. Journal of Hospitality & Tourism Education, 25(3), pp.131-145.
Hudson, S., Wang, Y. and Gil, S.M., 2011. The influence of a film on destination image and the
desire to travel: a cross‐cultural comparison. International journal of tourism
research, 13(2), pp.177-190.
Barber, N., Deale, C. and Goodman, R., 2011. Environmental sustainability in the hospitality
management curriculum: Perspectives from three groups of stakeholders. Journal of
Hospitality & Tourism Education, 23(1), pp.6-17.
Brown, E.A., Arendt, S.W. and Bosselman, R.H., 2014. Hospitality management graduates’
perceptions of career factor importance and career factor experience. International
Journal of Hospitality Management, 37, pp.58-67.
Israeli, A.A., Mohsin, A. and Kumar, B., 2011. Hospitality crisis management practices: The
case of Indian luxury hotels. International Journal of Hospitality Management, 30(2),
pp.367-374.
Tsai, H., Pan, S. and Lee, J., 2011. Recent research in hospitality financial
management. International Journal of Contemporary Hospitality Management, 23(7),
pp.941-971.
P. Crick, A. and Spencer, A., 2011. Hospitality quality: new directions and new
challenges. International Journal of Contemporary Hospitality Management, 23(4),
pp.463-478.
Yoo, M., Lee, S. and Bai, B., 2011. Hospitality marketing research from 2000 to 2009: topics,
methods, and trends. International Journal of Contemporary Hospitality
Management, 23(4), pp.517-532.
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