Coffee Industry

Coffee industry has been steady growth for years and continuing. Special Coffee Industry is incorporating convenience to buyers by using kiosks to get a coffee. Approximately the number quadrupled by 1989 to 15,000 outlets and the sales rocketed to $10 billion in 2005.  According to the national coffee association, adults in American are the daily consumers. Educated and working in urban areas were the main buyers with disposable income to spend on fine coffee.

Expresso Espresso was startup coffee shop that opened in March 2006 owned by Todd Sylvester. The shop was located at the front of University of South Alabama and targeted 13, 000 students plus faculty and staff.  Todd’s vision for the company arose from his personal beliefs. Overall, customer seem to like being there and employees love working for Todd. Although, Todd is optimistic and confident he is worried about the changing dynamics of the coffee industry.

Todd Sylvester was a man many ideas and believing everyone should have recognition, love and comfort. His point of view was to get customers to smile before they leave the shop. Todd treated all of his employees as family. In return, this gave the business the benefits of loyal, capable employees who were willing to work above minimum wage but no tips. Todd was confident in his business but he was worried about changing dynamics of the coffee shop industry in the Mobile Area.

As part of his moral influence, Todd had a policy of pricing below the competition to give everyone a fair deal. He also believed other coffee were charging too much. Although the business just opened at 12 weeks and the shop was already operating at a loss.  Expresso Espresso organization lack of management and business skills and Todd had limited time to run business. Plus Todd had to train his own staff.

Expresso Espresso suggestion solution – getting a customer to stay in door by adding more outlets for customer’s inconvenience and creating a social media such Facebook, Web page and Twitter account. Todd should definitely start roasting his own beans and selling brewed coffee. Todd should probably hold on opening a another store until the fist store has accomplished a consistent income.

Price Competitor Differences: