Comprehensive Analysis of Management Practices at Mr. Presto Cafe

This report provides a detailed analysis of the management practices at Mr. Presto Cafe, a prominent coffee shop in South Florida. The study examines three key aspects: supplier selection and evaluation, purchasing cost analysis, and the application of information and communication technology (ICT) to enhance business operations and increase sales. The report delves into the criteria for supplier selection, including financial stability, past performance, and alignment with the cafe's needs, along with the evaluation system based on the five Cs: Cash, Cost, Consistency, Culture, and Clean. Furthermore, it explores how the cafe can leverage ICT through various strategies such as loyalty programs, on-premises advertising, and special promotions. Finally, the report analyzes purchasing cost management, highlighting the significance of food and beverage costs, and providing insights into industry benchmarks and methods for cost control to maximize profitability.

Running head: ANALYSIS OF MANAGEMENT OF A CAFÉ 1
Analysis of management of a café
Student’s Name
Student’s School

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Introduction
The purpose of the assessment is the examination and thorough study of a local
café popularly known as the Mr. Presto Café. This is a major café in South Florida and
keeping in mind the need of thorough evaluation, the study has been broken into
subparts whereby it assesses three aspects of purchasing management namely
supplier selection and evaluation system, purchasing cost analysis and the use of
information and communication technology for the purpose of magnifying business and
increasing sales. The study provides a deep insight into the working of any café, right
from its groundwork to reaping high benefits in terms of monetary returns.
Mr. Presto is a major player in food services in South Florida. The café takes a
unique approach to the concept of selling coffee. The unique selling point of the café is
the strong staff which works as a very well-coordinated team to present its best services
to its customers. It banks its success upon the incessant need of coffee for coffee lovers
in town. Nothing seems better than the aroma of freshly brewed coffee, whether at one's
own place, office or a café. Mr. Presto specializes in cappuccinos, creamy vanilla being
a major sellout on all days. Besides, the conceptualization of Mr. Presto Bar has
managed to evoke much anticipation. (Business Victoria)
Mr. Presto recognizes its targeted markets into three categories. The first are the
drip coffee drinkers, the ones who require coffee on a daily basis. They may be student
or office-goers. The second category is the coffee shop lovers who basically come to
cafes for the enticing atmosphere it provides and prefer cafes to pubs and clubs. Third
are the specialty coffee drinkers who do not like a regular cup of coffee but rather go for
espressos, mochas or lattes. The café sees its major competitor in the newly invented
chain of Big Bean Coffee, who have managed to grab many an eyeballs due to their
quirky style of presenting coffee. (Wanger)
Supplier Selection Criterion of the café
The selection of an appropriate supplier is very imperative for any organization.
The basic requirement of any supplier is that it prioritizes the organization’s needs and

ANALYSIS OF MANAGEMENT OF A CAFÉ 3
works in tune with the necessities and requirements of the same. The following criteria
can be considered:
Effective supplier choice criteria:
 Past experience and past execution with the item/administration to be obtained.
 The relative level of modernity of the quality framework, including meeting
administrative necessities or ordered quality framework enrollment (for instance,
ISO 9001, QS-9000).
 Capacity to meet present and potential limit necessities, and do as such on the
coveted conveyance plan.
 Financial security.
 Specialized bolster accessibility and eagerness to take an interest as a partner in
creating and enhancing the configuration and a long term relationship.
 Aggregate expense of managing the supplier (counting the material expense,
specialized systems, stock necessities and approaching check needed).
 The supplier's reputation for business execution change.
 Aggregate expense appraisal. (espresso101)
Methods for deciding how well a potential supplier fits the criteria:
 Acquiring a Dun & Bradstreet or other freely accessible budgetary report.
 Asking for a formal quote, which incorporates furnishing the supplier with details
and different prerequisites (for instance, testing).
 Visits to the supplier by the administration and/or the determination group.
 Affirmation of value framework status either by on location evaluation, a
composed overview or solicitation for an authentication of value framework
enlistment.
 Discourses with different clients served by the supplier.
 Audit of databases or industry hotspots for the product offering and supplier.
 Assessment (such as prototyping, lab tests, OR approval testing) of tests got
from the supplier. (asq.org)
Supplier evaluation system

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The café takes into consideration the five Cs of Supplier evaluations namely:
1. Cash
The cafe ensures that its supplier is in great budgetary wellbeing. Financially
positive firms are in a vastly improved position to climate the good and bad times of a
dubious economy.
It needs to consider if the supplier has a lot of money nearby, or is it
overextended fiscally. What's more, what data can the supplier offer to exhibit its
progressing monetary quality? (Keith)
2. Cost
The cafe considers the expenses of the items that this supplier gives. The vast majority
consider the expense to be a key element when picking a supplier. On the other hand,
expense is amidst this list for a reason: different variables, for example, a pledge to
quality and money related wellbeing, can conceivably influence your business
substantially more than expense alone, especially on the off chance that you will
depend on the supplier on a continuous premise. (Svala)
3. Consistency
The cafe ensures that the supplier guarantees that it reliably gives amazing
products and administrations. Nobody can be consummate constantly. Be that as it
may, the supplier ought to have forms or techniques set up to guarantee consistency.
the cafe gets information about its approach and gets a show and a test item if
conceivable. (Svala)
4. Culture
The best business connections are in view of firmly coordinating working
environment values. This is the reason that taking a look at the supplier's business
society is imperative. Case in point, suppose it is possible that the cafe's organization's
most critical worth is quality, and its principle supplier thinks all the more about meeting
due dates, then this implies incompatibility. This mismatch could imply that it’s willing to

ANALYSIS OF MANAGEMENT OF A CAFÉ 5
decrease corners in a manner that could end up being unsuitable to the cafe.
(Manktelow)
5. Clean
This alludes to this present supplier's dedication to manageability and its adherence to
natural laws and best practices. What's happening with it to help its ecological foot
shaped impression? The cafe must solicit to see proof from any green awards or
certifications that it's earned. Additionally, it should evaluate if the supplier treats its kin
and the individuals around it well and does if it has a reputation for working together
morally and on ethical principles. (Manktelow)
Information and communication technologies for purchasing operators
In order to enhance business and revenue, keeping in view its organizational
needs and goals, the café can employ the following strategies:
1. Suite of Services
Extensive advertising methods start with item and administration improvement.
Mr. Presto cafe can particularly profit by adding to a wide, client benevolent suite of
administrations since verbal promoting can be a successful approach to transforming
extensive gatherings of individuals into steadfast clients.
The cafe must make sure to offer free Wi-Fi in its area, for instance, and to
introduce electrical outlets at every table for tablets. Book live diversion for the cafe all
the time, host verse readings and different occasions with a group feel can boost the
liveliness of the place. In the event that customers have more than one coffeehouse
alternative in its general vicinity, the cafe should verify it offers something the others
don't, so that supporters need to convey their companions to see the distinction.
(Markovich)

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2. Loyalty Programs
Loyalty programs are an absolute necessity for cafés. Loyalty projects can be as
basic as punch cards with the guarantee of accepting each some espresso free, which
can be appealing to everyday espresso consumers.
The cafe should consider taking its incentive projects to the success level to beat
its rivals. It should devise a more intensive framework that tracks the aggregate dollar
measure of buys for every client, for instance, giving free results or something to that
effect when client spend certain sums – conceivably expanding the estimation of
freebies over the long run. (Markovich)
3. On-Premises Advertising
Publicizing on its premises is likewise an unquestionable requirement for El
Carte. All cafés ought to have an exterior that obviously recognizes the foundation for
what it is. This implies substantial windows (if conceivable) uncovering within sitting
range, tables set up outside and espresso menus posted outside. The cafe should set
up clear and noticeable store signage, pick an exceptionally unmistakable area and
place little, portable signs by the street, by the walkway or in its outside sitting region.
Selecting the right name can be helpful for on-premises publicizing, also. (Ingram)
4. Special Advertising
The cafe should use deals advancements and publicizing together occasionally
to give its shop a boost in new visits. It should place coupons in nearby daily papers and
magazines, for instance. It can also influence online networking by posting printable
coupons on Facebook and Twitter, or utilize an administration like Groupon to convey
coupons to Internet clients in its local area. (Ingram)
Purchasing Cost Analysis

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To amplify benefit, the cafe needs to distinguish zones where its eatery can
progress. A one rate point drop in the expense of products sold, finance, or working
costs would bring about an extra rate point to what really matters.
Since deals and costs are separated into particular classes, the administrator can
without much of a stretch think about and dissect his or her eatery to industry standard
rates or to its own particular recorded expenses.
As should be obvious in the food service business, eatables and drink expenses
combined with work expenses devour the most (56% to 77%) of aggregate deals. The
consolidated aggregate of these two expense classes alluded to as the eatery's Prime
Cost, are the place the fight for eatery productivity is really pursued. This is not just in
light of the fact that they speak to the biggest rate of the cafe's aggregate costs,
additionally on the grounds that the cafe can control them. In light of their significance,
they must be the center of its investigation. When the cafe foresees a Prime Cost rate
surpass 70%, a warning is raised. (RestaurantReport)
Sustenance and refreshment expenses can have noteworthy effect on an
operation and benefit; along these lines they are the first things the operator needs to
look at and are essential to know where these expenses fall in connection to aggregate
deals all the time. The cafe must have the capacity to screen its food and refreshment
cost by contrasting it with industry midpoints and verifiable execution. The reliable
investigation can demonstrate extremely supportive in recognizing issues and patterns.
It is imperative to focus why sustenance expenses increment and additionally diminish.
In a perfect world, the cafe ought to have the capacity to focus a predictable general
sustenance cost which, when joined with legitimately evaluating its food menu things,
absolutely affects its productivity. (mplans.com)
After it has decided aggregate sustenance expenses and deals, it can figure out
whether its food expense is in accordance with industry midpoints. Profiting cafes
commonly create food costs in the 26 to 36 percent scope of sustenance deals.
Contrasting the café’s expense rate with cafes with comparative menus and
administration levels gives a more exact viewpoint

ANALYSIS OF MANAGEMENT OF A CAFÉ 8
Cafes ordinarily produce refreshment costs in the 22 to 28 percent scope of drink
deals. Notwithstanding, distinctive sorts of operations may run higher or lower rates; fine
feasting foundations may keep running up to 40 percent. Offers of jugs of wine, which
happen principally in fine feasting cafes, are normally less productive than other jazzed
up drinks and could be stamped up as meager as two times expense. This would bring
about a 50 percent refreshment cost. On the other hand, cafes that serve fundamentally
draft brew may keep running as low as a 15 percent refreshment cost. Contrasting the
cafe's expense rate with cafes with comparable menus and administration levels and
industry midpoints is critical. (consultingdloewi)
Notwithstanding was contrasting with industry normal; the cafe can utilize
likewise its own recorded food and refreshment cost rate to assess the present period
sustenance cost. Particularly it can recognize patterns when contrasting the sustenance
and drink cost with their past execution. (consultingdloewi)
Conclusion
The café aspires to be the premier in the casual dining experience. It has the
potential to gain unprecedented success due to its delectable coffee and reasonable
prices. It however, ought to improve on the communication part and treat each customer
as its only customer. It also needs to exercise financial controls effectively.
Networking virtually, promoting on and off the line, and also email crusades will
convey new clients to the bistro. The food and the administration, notwithstanding, are
the main things that will hold them to itself leading them to come back, over and over.
(businesscasestudies)
Clients are glad on the grounds that they can make certain the thing they need is
on the menu that day. The proficient stock administration is fundamental to any
business. It empowers the business to work in a mindful manner.
Because of lower expenses, Mr. Presto can pass the advantages on to clients,
giving the better administration and lower costs. The decrease of waste gives a win-win
circumstance for the cafe, its clients, and wider society. (Keith)

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