Dear Patricia Lodge,
In this report, as requested, I hope to help you understand the current situation, of the Lodge Bistro Chain. I believe the issues affecting the business are: staffing problems, growing competition, inconsistency in the approach of management, attracting lower spending customers, disagreement between managers and company standards lowering.
The staffing issue, more specifically the high staff turnover, is affecting the expenditure of the company due to the constant training which is also impacting upon existing staff due to the pressure and responsibility being put on them. The service will also lack in quality and consistency due to this problem; having both inexperienced and overworked staff will affect the quality of service, resulting in the possibility of a bad reputation exposed to the public, your potential customers.
Growing competition in the Cafe market is also proving a big problem, as you have stuck with the same theme from the late 80’s, this is tiring with customers who are maybe looking for a fresher look and feel.
Inconsistency in management and how each branch is run is also a big problem. Customers see your brand, and expect consistency in every cafe. You cannot afford to let management overrun your business with their own ideas, thus almost creating a franchise! This is drastically lowering the company’s standards.
I have chosen to create a SWOT Analysis for The Lodge Bistro Chain.
- Well known in local area
- Communication between managers and head office
- Customer loyalty
- Computerised systems
- Long serving management
- Dated décor and image
- Inconsistencies between establishments
- Unappealing to younger market
- Standard of food
- Overworked staff
- Staff turnover
- Differing ranges
- Location of some cafes
- Introduction of ethical range i.e. organic
- Loyalty schemes