Harvard Case - Café Betterfield: Optimising the Food Menu
"Café Betterfield: Optimising the Food Menu" Harvard business case study is written by Marcus Teck Meng Ang, Arthur Ruey Heng Hu. It deals with the challenges in the field of Service Management. The case study is 8 page(s) long and it was first published on : Jan 10, 2018
At Fern Fort University, we recommend that Caf' Betterfield implement a multi-pronged strategy to optimize its food menu, focusing on enhancing customer experience, increasing revenue, and improving operational efficiency. This strategy involves a combination of service innovation, product diversification, strategic pricing, and enhanced marketing efforts.
2. Background
Caf' Betterfield is a popular caf' located in a bustling university campus. The caf' faces challenges in maintaining customer satisfaction due to limited menu options, inconsistent service quality, and a lack of clear brand identity. The owner, Sarah Betterfield, is seeking ways to improve the caf''s performance and achieve sustainable growth.
3. Analysis of the Case Study
This case study can be analyzed through the lens of service quality, customer experience management, and operations strategy.
Service Quality: Caf' Betterfield struggles with inconsistent service quality, leading to dissatisfied customers. This can be attributed to:
- Lack of standardized service procedures: The caf' relies heavily on part-time staff who lack proper training and consistent service standards.
- Limited staff training: Employees are not adequately trained in customer service skills, leading to inconsistent interactions and potential service failures.
- Inefficient service delivery: Long wait times, order inaccuracies, and lack of attention to detail contribute to a negative customer experience.
Customer Experience Management: The caf' lacks a clear understanding of its customer needs and preferences. This is evident in:
- Limited menu options: The menu is not diverse enough to cater to the varied dietary needs and preferences of the university community.
- Lack of customer feedback mechanisms: The caf' does not actively seek customer feedback, leading to a disconnect between customer expectations and service delivery.
- Absence of a loyalty program: The caf' lacks a loyalty program to incentivize repeat customers and build stronger relationships.
Operations Strategy: The caf''s current operational model lacks efficiency and flexibility. This is reflected in:
- Limited menu planning: The menu is not optimized for efficiency, leading to wasted resources and potential food spoilage.
- Inefficient inventory management: The caf' struggles with managing inventory, resulting in stockouts and overstocking.
- Lack of process analysis: The caf' lacks a systematic approach to analyzing and improving its operational processes.
4. Recommendations
Service Innovation & Customer Experience:
- Develop a Service Blueprint: Create a detailed service blueprint to map out the entire customer journey, identifying key touchpoints and potential areas for improvement. This will enable the caf' to streamline service delivery and enhance customer satisfaction.
- Implement Service Standards: Develop clear service standards and training programs for all staff, emphasizing customer service skills, product knowledge, and efficient order processing.
- Introduce a Customer Loyalty Program: Develop a loyalty program to reward repeat customers and encourage increased spending. Offer discounts, exclusive promotions, and personalized offers to build stronger customer relationships.
- Embrace Technology: Implement a point-of-sale system with online ordering capabilities to streamline operations, reduce wait times, and enhance customer convenience.
Product Diversification & Strategic Pricing:
- Expand Menu Options: Introduce a wider range of food and beverage options, including healthy choices, vegan and vegetarian options, and specialty coffee drinks. Conduct market research to identify customer preferences and cater to diverse dietary needs.
- Implement Value Pricing: Offer value-priced combos and meal deals to attract budget-conscious customers and increase average order value.
- Introduce Premium Options: Include premium ingredients and specialty items to cater to customers willing to pay a premium for high-quality food and beverages.
Marketing & Branding:
- Develop a Strong Brand Identity: Create a distinct brand identity that reflects the caf''s unique offerings and target audience. This includes developing a consistent brand message, logo, and visual identity.
- Leverage Social Media: Utilize social media platforms to engage with customers, promote new menu items, and build brand awareness. Run contests, offer promotions, and share engaging content to increase customer engagement.
- Partner with Local Businesses: Collaborate with local businesses, such as university departments or student organizations, to offer special promotions and events.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of Caf' Betterfield's current situation, taking into account its core competencies, customer needs, competitive landscape, and potential for growth.
- Core Competencies: The caf' has a strong location and a loyal customer base. By leveraging these strengths and implementing the recommended strategies, Caf' Betterfield can capitalize on its existing customer base and attract new customers.
- External Customers: The recommendations are tailored to meet the diverse needs and preferences of the university community, including students, faculty, and staff.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Caf' Betterfield from its competitors by offering a unique customer experience, diverse menu options, and a strong brand identity.
- Attractiveness: The recommendations are expected to increase revenue, improve profitability, and enhance customer satisfaction, leading to sustainable growth for the caf'.
6. Conclusion
By implementing these recommendations, Caf' Betterfield can transform itself from a struggling caf' to a thriving business that meets the needs of its customers and achieves sustainable growth. The focus on customer experience, product diversification, strategic pricing, and effective marketing will enable the caf' to establish a strong brand identity, increase customer loyalty, and achieve its business objectives.
7. Discussion
Alternatives not selected:
- Focusing solely on cost reduction: While cost reduction measures can be implemented, they should not be the primary focus. This could lead to a decline in service quality and customer satisfaction.
- Expanding into new locations: This option could be considered in the future, but it is not recommended at this stage due to limited resources and the need to focus on improving the existing caf''s performance.
Risks and Key Assumptions:
- Customer acceptance of new menu items: The success of the expanded menu depends on customer acceptance. The caf' should conduct market research to ensure that the new offerings align with customer preferences.
- Effective implementation of service standards: The success of the service improvement strategy depends on the effective implementation of service standards and training programs.
- Competition from other food outlets: The caf' needs to monitor the competitive landscape and adapt its strategies to remain competitive.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline the specific steps, timelines, and resources required to implement each recommendation.
- Conduct market research: Gather data on customer preferences, competitor offerings, and market trends to inform the menu development and marketing strategies.
- Train staff: Implement comprehensive training programs for all staff on customer service skills, product knowledge, and operational procedures.
- Monitor progress: Regularly track key performance indicators, such as customer satisfaction, revenue growth, and operational efficiency, to measure the effectiveness of the implemented strategies.
By taking these steps, Caf' Betterfield can effectively implement the recommended strategies and achieve its goals of optimizing its food menu, enhancing customer experience, and achieving sustainable growth.
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Case Description
John Chow, the owner of Café Betterfield (CBF), is a food gourmet and a passionate entrepreneur. CBF offers a wide spread of food options, and this was a big draw for many of its regular customers. With these strengths, Chow was puzzled by the lacklustre and irregular profitability of the cafe. Mandy Lim, the newly-hired manager of CBF, was tasked to investigate and find solutions to the current problems.
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