Revitalizing Wake Up Coffee Shop: A Comprehensive Operational Plan

The report presents an in-depth analysis of the issues affecting Wake Up Coffee Shop's performance, including poor customer experiences due to inadequate staff skills and outdated equipment. Recommendations for operational improvements include comprehensive training programs, hiring additional skilled employees, marketing campaigns, product range enhancement, facility upgrades with new furniture and décor, and equipment replacement. An effective re-launch strategy is proposed, emphasizing promotional activities like offers and discounts, alongside regular performance monitoring through customer feedback and sales analysis. Additionally, a contingency plan involving the introduction of a bakery is suggested if initial strategies fail to meet expectations.

Running head: OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT
Name of the Student:
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Memo of Transmittal
To
From
Subject: Memo of transmittal for a review report of a café
Release date: 27th October
The review report focuses on the operations management of “Wake up” coffee shop in La Trobe
Street, Melbourne. The location of the café is on one of the famous streets of Melbourne but
recently there were many complaints from the end of customers regarding the customer service
and cleanliness of the coffee house it was found from the sales reports that the sales of the coffee
house have been falling considerably. The report contains the findings from the visits that were
paid for the inspection of the operations of the coffee house, these visits aimed to investigate the
reality of the complaints of the customers. The headquarter of the coffee chain wanted to know
about the operations of the coffee house so that proper strategies can be made for increasing the
operational efficiency of the business and reduce the customer complaints which would result in
increase in sales. This report is very important because it will be the basis of the operational plan
of the franchisee. The report would be presented to the headquarter of the franchisee situated in
Sydney. Visits were paid to the coffee house chain in two different occasions. In the first visit to
coffee house, in the month of August, after the complaints of the customers it was found that :
Very less employees were there for customer service.
Three employees were taking orders and there was complete mismanagement.
After ordering coffee, it was found that the delivery came after 25 mnts, which was too much for
just a cup of coffee.
Another visit was paid during the month of September, exactly after a month because the
complaints were increase and it was found that the sales of the coffee house was falling
considerably

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All the findings from in the second visit were same as the first visit, another major issue that
came into light after the second visit was that the coffee shop was dirty and chair tables were not
kept in an organized way. Cleanliness was a major issue that came into light.
Limitations of the Report
The report is based on the two days visits and it states the situation on those particular
days. The scenario might be different in other days and there is possibility of other issues that
might not have been highlighted.
Another limitation is that some of the findings depend on the customer feedback which differ
from customer to customer.
The cooperation of the staff members have been acknowledged. The cooperation of the
customers are appreciated.

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Executive Summary
This report is based on the operations management of a coffee shop situated in Melbourne,
Australia. The report includes the findings of the operations of “Wake up” coffee shop, the
national franchising headquarter of this coffee shop has been receiving complaints from the
customers regarding the poor quality of customer service that caused havoc amongst the
customers. To investigate the depth of these complaints, a representative was sent to the coffee
shop to see the problems so that relevant measures can be taken. This report will help in making
an operational plan for the coffee shop so that “Wake up” coffee shop can achieve operational
efficiency. The company’s major strategy is re-launch of the coffee shop aiming at building the
trust of the customers so that business can once again run in its previous pace. One of the
findings of the company was mismanagement. There were many such findings discussed in
report.

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Table of Contents
Limitations of the Report.................................................................................................................2
Background......................................................................................................................................5
Problem Identified...........................................................................................................................5
Purpose of the report........................................................................................................................5
Significance of the report.................................................................................................................6
Scope of the report...........................................................................................................................6
Data collection.................................................................................................................................6
Organization....................................................................................................................................7
Discussions of the findings..............................................................................................................7
Conclusion.......................................................................................................................................9
Recommendations..........................................................................................................................10
Operational plan.............................................................................................................................12
References......................................................................................................................................14

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Background
Wake Up coffee is one of the leading coffee shop chain in Australia. One of the
franchisee operates in La Trobe street Melbourne which is one of the famous and busiest streets
of Melbourne. It has been two years that the coffee house in La Trobe street have started the
operations. Initially the operations of the company was good but from the past six months the
customer complaints have increased, the complaints were based on the quality of services
provided to the customers are not up to the mark. Some of the customers complained about the
mismanagement due to lack of staffs, they complained about delays in their deliveries and also
the quality of coffee, beverages and the snacks provided in the coffee house have been
deteriorating. The complaints of the customers have raised concerns and the authorities in the
headquarters in Sydney are worried about the fall in the sales and increase in customer
complaints. To understand the depth of the issue an investigation was conducted, which followed
two visits to the coffee shop.
Problem Identified
The main problem that led to the investigation was the customer dissatisfaction. The
increasing number of complaints regarding the food and the service quality at the coffee shop has
been identified as the main reason that led to the investigation. Another reason was the fall in
sales of the franchisee so the business owners decided to cooperate in the investigation so that
proper strategies can be implemented for resolving the issues (Mahadevan, 2015).
Purpose of the report
 The purpose of the report is the identification of the issues within the coffee house
 In-depth analysis of the problem
 Knowledge of the feedback of the customers and their satisfaction level from the product
and services provided by the company
 For finding solutions of the problems and making an operational plan that would consist
activities to increase operational efficiency at the coffee shop.

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Significance of the report
This report is very for the national franchising headquarter of the coffee chain and to the
franchisee as well. This report will find the limitations of the operations. It would help the
franchisee to implement measures to improve the customer service. After this report the business
owners would be able to find the actual reason for the decline of the sales. They can train the
employees and lead them towards the right direction so that good quality customer service can be
provided aiming at increasing the customer satisfaction level. For any business to gain
sustainability, it is very important to gain customers’ trust. Loyal customers are the key to
sustainability of the business. A happy and satisfied customer will always bring customers that
are more new and thus business will grow. So, it is very important to keep the existing customers
happy. In the present scenario of the organization, mismanagement has led to customer
dissatisfaction and fall in sales of the coffee house. This review report will guide the
management while making strategies and operational plan for the business.
Scope of the report
The report focuses on the problem and issues found out from the inspections done on the
coffee house. Apart from identifying the issues, the report also analyzes the problems within the
organization. After the analysis have been done solutions would be given so that proper measure
are taken for combating the crisis situation that the coffee house is currently facing.
Data collection
The data collected for the review report was based on personal investigation that was
carried out in two different occasions. The investigations aimed at finding the problems that
caused problems within the organization. One of the visits was made during the month of August
after the increase in the customer’s complaints. The method used for data collection was
investigation. Therefore, the data used for this report are primary data because they have found
out through field research and customer feedback. One of the visits was a surprise visit so that
the operation procedure can be evaluated properly. Paying a visit by informing the franchisee
might alarm them and there are chances that some of the issues might not be highlighted.
Maximum issues came into light during the first visit to the coffee house. In the second visit in

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the month of September, the focus was mainly on the inventory management of the coffee house
and customer feedback because these two things were left in the initial investigation.
Organization
The report starts with introduction that contains background detail describing the scenario
that led to the issue. It contains problem identification, followed by purpose of the report, the
next thing included in the introduction section is significance of review reporting. There is a
detailed discussion on the type of data and method for data collection is used. The next section of
the report contains discussions from the findings of the investigation. The last section of this
report contains recommendations and conclusions.
Discussions of the findings
This part of the report consists detailed discussion of the findings and the impact of the findings
to the business.
Finding 1. Less number of employees- During the first visit made to the Wake Up coffee shop it
was found that there were less number of employees to to manage the operations. The customers
were comparatively much more in number than the employees. In such case it is pretty obvious
that there would be mismanagement. The employees found it difficult to take the orders from the
customers and deliver the orders on time. There was a situation of chaos within the coffee shop.
The time gap between a placed order and its delivery was too much and the customers were
frustrated. Some of the customers were seen walking out of the coffee house. Only five staffs
were seen on the first visit two were taking orders, two were engaged in preparation of coffee
and one was at the front desk as concierge. It was noon and rush hour, so less number of
employees caused chaos.
Analysis- Less number of employees in rush hour causes mismanagement. More employees are
required to be hired for working in the rush hours of the day because there are more number of
people that would be visiting the coffee shops in the rush hours.
Finding 2. Quality of the service – The mismanagement was so much that wrong orders were
placed to the customers.

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Analysis- The service quality was very poor, the inspector also placed an order and it was found
that delivery time of a cup of coffee was 25 mnts, which was too late. The cup that for serving
coffee was not properly cleaned. For service industry it is very important that the quality of
service is of high standard, if the company wants to create a competitive advantage in the market
or else even the existing customers will prefer other service providers.
Finding 3. Quality of products- The quality of the coffee served was not up to the mark, it is
completely different from what is being committed to the employees. Even other customers were
complaining about the quality of coffee and snacks, were very poor. The muffins that were being
served to the customers were not fresh.
Analysis- The quality of the food or coffee that is being served is not as per the quality that is
being committed. Some of the loyal customers complained that initially the quality of the snacks
like, muffins, cakes, pastries and other desserts was much better than what is being served
presently. It is very important that the customers’ expectations are always met, failure to
providing the quality that has been committed often becomes the reason for complaints.
Finding 4. Cleanliness
Another major issue that came in to light during the second visits was the cleanliness was not
maintained. All the restrooms were dirty and were smelling that made the customers very
agitated. Tables and chairs were not properly kept. The windows were not dusted, the table
cloths and curtains also were not properly cleaned. The whole atmosphere was not not appealing
and rather it seemed very gloomy. When the refrigerators and the kitchen of the coffee shop was
inspected it was found that the refrigerators were very dirty and stale food products were also
found.
Analysis- Ambience of the coffee shops are also important, a soothing atmosphere makes the
customers to visit the place repeatedly seeing it from the perspective of a first time visitor it
would give a bad impression to the company. They would never prefer to visit the place again
and will also spread negative word of mouth. A dirty place always gives a bad impression and it
is also risky for the customers in terms of their health. Hygiene is the most important factor for
any organization.

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Finding 5. Decreased number of customers- During the second visit, it was found that the
number of customers has quite decreased. Even in the second visit the investigator preferred to
visit in the rush hour but there were very less customers.
Analysis- Decrease in the number of customers is the clear sign that the business of the company
is running in loss. Compared to the previous visit the number of customers had significantly
reduced.
Finding 6- Looking at the sales reports of the company it was found that from the past six
months the sales of the company was falling considerably. The operating cost of the coffee shop
was still the same but the revenue had decreased
Analysis- It is very clear that the fall in sales was because of the poor quality of service and other
factors that compelled the customers to switch to other service providers.
Finding 7- From the customer feedback during the second visit it was found that most of the
customers were dissatisfied with the either the service or the ambience of the coffee shop. Some
of the customers even complained that they are not getting the value of the services that they are
being provided by the company.
Analysis- Customer satisfaction is the most important criteria for business growth and it the
determinant that either brings loss to a business or profit. In this case, customer dissatisfaction
has been the root cause for all the issues.
Conclusion
Thus from the following report it can be concluded that there are severe issues that are being
faced by the coffee house chain Wake up. The coffee chain has many outlets and franchisee in
Australia. The good will of the coffee chain will be lost if the situation remained same. The
headquarter of the WakeUp has been getting complaints, from the past six months the complaints
have been increased. The complaints are not just one issue there are multiple issues that are faced
by the customers. Poor quality of food products and services has been one of the consistent
complaints from the end of the customers. Customers have also been complaining about issues
like, late delivery of orders and they have to wait for around 25 mnts for a cup of coffee. The

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complaints raised the concerns of the authorities in the National franchising headquarter of the
coffee shop and therefore two visits were paid. The aim of the visits was to investigate the reality
of the complaints and the reason behind the inefficiency at the coffee shop. After the visits, one
was pre-notified and in the other visit the investigator visited as a customer. It was found from
the investigation that most of the complaints of the customers were true. There was
mismanagement because there were very few staffs in the rush hour. Hygiene was not
maintained properly. Customer service and the food products including the coffee served at the
coffee shop was not of good quality. Therefore, there is a need for an operational plan that could
increase and improve the overall efficiency of the coffee shop.
Recommendations
Looking at the condition of the coffee shop and the decline in the sales, certain measures have
been taken so that the efficiency of the coffee shop can be improved and it achieves its goals and
objectives. The recommendations aims at helping the business gain its previous position.
Increasing the number of the employees- This was the first finding that the number of employees
were very less. During rush hour, it is suggested that the coffee shop should have at least 4 staffs
who would be taking the orders from the customers and 5 people who would be engaged in
preparing the orders of the customers.
Improvement in the preparation methods- One of the reasons behind late deliveries of orders are
inefficiency in preparation procedures. Among the five members two of the staffs would collect
the orders from the staffs in the dining area and assemble them, they will communicate the
orders to the other three staffs in the preparation section. The order would be prepared
accordingly. Unless and until an order is not completed another order would not be processed.
Training and development- The employees should be trained so that they can provide quality of
service as well as quality of coffee and the desserts provided. Generally the desserts are not
prepared within the coffee shop but ordered from a local bakery, so it is the duty of the staffs in
the kitchen to see that stale products are not delivered to the customers. A standard preparation
technique needs to be followed so that the standard of the coffee servings are same as the main
outlets of Wakeup coffee shop. For this purpose the standard methodology should be send to the

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franchisee and it is the duty of the franchisee to see that it conducts training for its staffs
members. Training should also be given for providing quality customer service (Heizer, 2016).
Cleanliness- Another issue that was found in the investigation and also in the customer
complaints was regarding cleanliness. The coffee shop should hire employees who would clean
the coffee shop, change the table clothes and curtains regularly. Dusting should also be done
regularly. The restrooms should be kept clean and there should be availability of water and
toiletries. The ambience of the coffee shop should be made as soothing as possible by using
beautiful lights and modern furniture. A slow music might make the atmosphere more pleasing.
Increase of sales- For increase in sales the company needs to focus on many things like customer
relationship, promotion and advertisements. For customer relationship the coffee shop needs to
improve its customer service and customer handling, an efficient manager should be hired for
handling the customer grievance and resolves issues related to orders, so that no customer walks
out of the coffee shop. For advertisements it is not necessary that the company spends too much
on advertising activities it can simply use print media for advertising. Flyers and brochures
stating would be enough for advertising.
Promotion- For promotion also the coffee shop does not need to spend much they simply can
plan a re-launch of the coffee shop, where few offers, discount coupons would be enough for
making for attracting customers on the re-launch. Seeing the image of the coffee shop and the
decrease in sales, in order to gain its previous position the coffee shop will have to take a re-
launch as a service development measure. The re-launch should be planned and the customers
should be informed in advance with the help of flyers that will have information about the
revised menu and offers or discounts for the customers so that the re-launch of the coffee house
is successful (Davis et al., 2013).