SWOT analysis

1.1 Company Overview

Café Zouk is one of the finest boutique style restaurants in Lahore, Pakistan. The restaurant is known for its exclusive, ever changing and delightful décor, which is tasteful and kept up to date under the management of Shahzad Khokhar. The café is an exclusive dining outlet that serves an exclusive and carefully selected assortment of the novella cuisine, which is served in munificent portions with a warm, and cordial as well as a table friendly hospitality. Café Zouk can adequately fundamental in helping the customers relish on the delightful ambience, which in turn helps the clientele drift away to a different dimension., leaving Lahore behind, into the heart of Manhattan or a fine dining experience in Dubai or perhaps any other cosmopolitan city. The luscious dining experience is complemented with the Global standard of fine food and service, fit for the culinary connoisseurs. This café was found in the year of 1995 under the shadow of CEO Ahmed Shahzad Khokhar, who was in turn is a holder of a Masters Degree in Hospitality from the United States and gradually he decided to enter into the Lahore Culinary Industry. Under improvised research and analysis the fine restaurant has been set up in a ideal site in the restaurant district with an efficient management team, which would help the restaurant set itself up as an icon in the Pakistan Restaurant Industry, in the heart of the city of Lahore. The restaurant has currently found it rightful place in the M.M lam Road, Gulberg II place, Lahore. Even though pricing of the edible are quite expensive with relevance to the décor and the presentation, the excellence of the customer service and the quality of the food is an order winner, which would be gradually analyzed in the report.

This report mainly analyses the operational problem that been identified in the delivery process and managing the quality meeting the high demands due to the rising popularity of the restaurant. The main problem lies the lack or highly expensive delivery services due to the long waiting queue in the outlet along with the quality management of the food, meeting the high demands.

1.2 Internal and External Analysis (SWOT)

The internal and the external analysis of Café Zouk has been done in the form of SWOT, which identifies its internal factors comprising of the strengths and weaknesses along with the external factors that comprises of its opportunities and threats.

Strength – The main strengths of Café Zouk is its location. Located in M.M Alam road, Lahore, Café Zouk enjoys a whole lot of customers from all the different sections, who come down from all the ends to enjoy its offerings. The quality of the food is another big strength of this place, since majority of the customers prefers this joint for its wide assortment of food and offerings. The warm and cordial hospitality are also the factors that play hand-to-hand in to contribute to the strengths of Café Zouk. Another contribution to the main potency of this place is the serene and niche atmosphere, along with the beautiful décor, which is adds leverage to the attributions of Café Zouk. Well-trained chefs and staffs of the restaurant help it maintain it quality, taste and hygiene, in terms of managing the demands, retaining customers and generating new ones.

Critical analysis and review

Weakness – The potential backing out of the customers in the last minute along with the mismanagement errors leading to the disintegration of the reputation of the dining place can incur huge loss for the company. The overloading in peak hours of business results in the degeneration of the food quality along with the managerial ethics can take a toll in the business, reputation and revenue generation of the company. The lack of delivery or take away service results in loss of customers and effectively managing the demands.

Opportunities – Café Zouk has a great opportunity to retain its reputation as of the well-known brands of fine dining. The well management of the staffs and food quality is the only way Café Zouk can win over its customers as well as demonstrate its unique selling proposition, in comparison to the other restaurants. The managing of the mentioned weaknesses can be proposed as the potential opportunities of this fine dining place. Well management of the food quality, the customer service and hospitality along with well management of the entire operations is a huge opportunity for Café Zouk to retain itself as a symbolic representation of the concept for fine dining.

Threats – The failure to manage the operations of the restaurant as well as the loss of the potential customers to the other contenders in the restaurant industry or the nearby food joints is the potential threat of Café Zouk. The heavy pricing in comparison to the other restaurants irrespective of the quality obstructs Café Zouk to achieve a competitive edge over its other counter parts in the tough competition. The prejudicial feedbacks from the customers can hamper the reputation of the restaurant can put the restaurant under a lot of substantial pressure due to the bad report and feedback. High competition in the industry can force the customers to look for alternatives on cost effectiveness and cost benefit grounds.

2.1 Order winners and qualifiers

There is a rising level of competition among the different restaurants where all of the competitors have been contending each other to emerge and tagged as one of the best foine dining restaurants. However, it can be justified that in order to make one organization one of best, it needs to comply with the complete understanding of its key strengths and weakness in terms of operations. This in turn would help the company achieve its own competitive edge in the entire industry. To do the same it is thus necessary for every organization to gather valuable feedbacks from its customers and investigate it to predict its key order winners and order qualifies and utilize the same to reformulate or reconstruct its operational activities or strategies. Thus, in order to achieve the same, Café Zouk’s has conducted a survey of fifty people with the help of, which the predictions have been made. The questionnaire that has been used for the process has been attached in the appendix section (refer to figure 1). Thus, it can be concluded that the successful management of the operations and the performance demands Café Zouk to keep coordination between the order qualifiers and the order winners (Doppelt 2017). A chart has been attached based on the results from the survey, which has been conducted.

	Criteria	Order winner	Order qualifiers
Product quality	Food quality (100%)	ü
Product presentation	Food processing (30%)		ü
	Product assortments (5%)		ü
	Product quantity (20 %		ü
	Customer service (10%)		ü
Location facility	Location (35%)		ü

Product quality

As illustrated in the chart and previously mentioned, the order winner of Café Zouk is the quality of the product on the contrary, the food processing, the products assortments, with the customer service and the restaurant positioning being considered as the order qualifiers.

Product quality is one of the principle strengths of Café Zouk, based on which the entire fine dine experience is based upon. Zouk is one of the oldest cafes, which has been serving the customers its wide assortments of multi cuisines along with a good ambience. Based on the feedbacks that have been derived from the customers the quality and the quantity have been consistent except for the hefty pricing of the dishes. However, with peak hours there are a certain fall in the amount and the quality of the food due to rush of the diners and overcrowding. Along with the quality of the food, the quality of the service has been consistently good and as previously analyzed one of the order qualifiers of this fine dining place. Café Zouk has a menu that boasts over two hundred items in the list, with a team of talented chefs, who have been handpicked and are constantly evolving in their efforts to perfect their culinary skills. Certain items such as the Mediterranean platter, Thai fiery beef or Rivera Chicken are meticulously prepared to perfection. Apart from the savory dishes, not to forget the special drinks and beverages, come hand to hand with the dishes including a diverse variety of seasonal fresh juices. Depending on this culinary cult, the entire reputation of Café Zouk has been build over years, in Lahore (Mok, Sparks and Kadampully 2013).

Based on the circumstantial evidences, Café Zouk is one of the well-known fine dining restaurants that is famous for its well-managed décor and a wide assortment of dishes, which is being served. With relevance to the reputation and the customer, preference depending on the quality food that is served to the customers this restaurant faces high demand for its dishes (Booth 2015). With the limited seating options, often this restaurant faces crisis to accommodate for the surplus crowd. Most often due to lack in the accommodation, the customers prefer to take away the delivery or prefer to order the food online. However, due to the lack or less availability of the facilities, the customers have to turn towards other options. This result in the incurring of huge loss for the restaurant due to the inability to attend to the surplus crowd apart from the ones who are already accommodated in the actual infrastructure, thus failing to meet the demands of the customers and patrons (Daley 2012). Even if the food is delivered, there are certain parameters that are allotted in terms of delivery in an assigned location. In addition, the incurring cost of delivering the dishes is quite expensive, which the customers are not willing to pay in excess, apart from the hefty price tag of the individual dishes (Khanna 2015). These factors are the main criteria that results in the loss of customers due to the lack of facilities, so even if the demands are meet, this often takes a toll in the quality of the food, which is being offered by the restaurant. So technically speaking, all of the factors are inter related and coherent with each other (Monczka et al. 2015). Impact of one factor lays an impact on the other factors as well. With especially high demands during the peak times and the seasons, the restaurant seems to underperform in terms of supply and demand of its products, even fails to reach its customers.

Café Zouk being one of the famous food joints, which is popularly known for its exotic assortments tends to face a high rush or demand in terms of footfalls and customer visits during certain periods. This high demand can take a toll on business because of failed purchases due to returning of the unsatisfied customers, who fail to avail the services. To identify the main peak hours that Café Zouk faces, a survey has been done, which illustrates the time when the customers hit the dining joint. Based on the data gathered, customers prefer two major times to hang out, which is preferably from 14.00-16.00 hours, during the lunchtime and 20.00-22.00 hours for the dinner (Please refer to figure 2). However, it can be further added that due to the lack of accommodation, most customers prefers to take away or slip to another joint for the afternoon or the evening course. This in turn disrupts the business or operations of Café Zouk.

The above figure represents the customer journey mapping of Café Zouk. The three main stages represents the entire process, which the customer experiences in the dining place. The first stage is the pre ordering where most of the customers first get acknowledged about the café and its genre and get to know about the place through researching about it or taking recommendation from other. Gradually after making up the mind, they decide to arrive at the place.

The second stage demonstrates that the customer activities when upon arriving the restaurant, the customer has to wait for their turn and getting the opportunity they place their orders and eventually proceed to the consumption of the offerings.

The final stage of the map illustrates about the activities, which the customer goes through post ordering. This stage mainly involves the billing, payment and leaving of the customers from the restaurant prior requesting for their personal feedbacks and in certain cases ask for suggestions. However, the final level of returning back is highly unpredictable since it is controlled by the other levels of the different stages. A customer is likely to return if his/her expectations are met. However, it can be considered that in certain situation like the rush hours, the stages in the map is likely to be disrupted when the before it starts. Customers who fail to find long queues in the preordering stage or upon arrival is likely to wait and proceed to the ordering stage. For customers who have entered the ordering stage and are in a rush is likely to wait for a long time before the billing and is less willing to provide with feedbacks.

• It is being recommended that, café Zouk should initiate more concentration on fast foods and drive in concept. This is due to the reason that, in the current market scenario, customers expects fast delivery of the food rather than enjoying the ambience. Thus, offering fast foods will help them to cover more market segments. Moreover, this strategy will also help in reducing the customer traffic at one point of time.

Potential barrier

• However, one of the potential barriers for this strategy will be the negative perception of the customers regarding fast food. Thus, if they promote fast and drive in food, then the customer perception will be negative.

Alternative solution

• Café Zouk should introduce healthier options over the mainstream fast products in the market. This will help them to cover more number of customers along with enhancing their market reputation.
• Another recommended step for them will be the effective table management. This will help them to reduce the waiting period of the customers. Thus, with the reduction in the waiting time, more customers can be covered in a particular time period. Moreover effective table management will help to increase the rate of satisfaction among the customers. In the case of the table management, the table should be designed in such a way that it will accommodate at least 6 people at once. Thus, it will help to accommodate more number of people at once. Currently, the average waiting time in café zouk is 15 minutes. It is estimated that with the recommended table management, the waiting time will reduced to 7 minutes. Currently, they are having table with seating capacity of 4 people each. Thus, increasing the capacity of seating of the table will accommodate more people and reduce the waiting time.  

Potential barrier

• One of the key barriers for table management will be the perception of the customers regarding the position of the table and the time allotted per table. Thus, it will be a risky affair due to the reason that, it may have negative or positive implication on the customers.

Alternative solutions

• Equal concentration should be given on the delivery of the food and fast food. This will help to reduce the customer traffic in the café, which will in turn help to effectively manage the table without the reducing the time per table.
• Digital technologies will help to reduce the waiting period of the customers and reduce the interval time between two orders. Thus, the process will be more frequent and smooth along with better satisfaction level of the customers. This will be more beneficial for café zouk in the time of Eid-Ul-fitar. This is due to the reason that, Eid season will be the peak time and customer traffic will be at highest. The month of April to August will be off period due to arid season. Discount offers and coupons will be offered at that time in order to attract customers. Loyalty programs will also be promoted at that time only.

Potential barrier

• Huge investment is required in initiating digital system in the café. This is due to the reason that, digital system will require infrastructure and human resources to maintain. Thus, it will cause extra cost burden for them.

Alternative solutions

• Digital system should be implemented in a phased manner. This will help the café to regulate the costing along with determining the effectiveness of the system.

The above cost benefit analysis was done using Microsoft Office Tools. The analysis is based on a limited data, however, the result given and reflected in the analysis shows that implementing of additional training of the core staffs along with the delivery systems and self-checkout counters will help the restaurant to enhance the revenue as well as save costs (Ferwerda 2014). The cost benefit analysis took into consideration the various costs associated with the product. These included various costs like training and implementation costs. The benefits included revenue enhancement, saved costs and others. The rate of return was assumed 7% and the Net Present Value of the firm was quite high. Thus, after analyzing the results it has been recommended that the new technique should be considered and the installation of the self-check out and delivery system should be considered (Hurley 2014). The total investment made throughout the implementation of the project came about to 321000rs and the total benefits received will estimate to 679500rs. The costs will be saved by the reduction in the salary of ten high-grade executives, instead of relieving them from their duties (Hastings  2015). The additional benefit in taking such an initiative is getting the same work force with a higher cost benefits and preventing crisis in the workforce to save the cost. This initiative can not only boost the sales, but also avert crisis due to shortage of employees and amplify the cost benefits (Nas 2016). The revenue of the organization will increase tremendously, once this system is implemented and will lead to reduced waiting time and will reduce aborting of purchases. The implementation of the service will give the restaurant an edge over other restaurants.

		FISCAL YEAR
Cost Items		2018	2019	2020
Consultation		50000	40000	40000
Self check out and delivery systems	37500	40000	42500
Others		20000	10000	17000
Employee and Staff Training		8000	10000	6000
Project Total Cost  by Year		115500	100000	105500
PROJECT TOTAL COST	321000
Costs	Costs per unit	Unit	Total (Pakistani Rupees)2018	Unit	Total (Pakistani Rupees)2019	Unit	Total (Pakistani Rupees)2020
Consultation			Rs. 5000		4000		4000
Self check out and delivery systems	Rs. 2500	15	Rs. 37500	16	40000	17	42500
Others			Rs. 20,000		10000		17000
Employee and Staff Training	Rs. 400	20	Rs. 8000	25	10000	15	6000
		Total Cost	Rs. 70,500
Benefit Sources	2018	2019	2020
Enhanced Revenues		20000	22000
Decreased Employee Salaries	100000	100000	100000
Decreased National Insurance, Pension and Others	112500	112500	112500
Total Benefits Per Year	212500	232500	234500
Confidence factor	100%	100%	100%
Benefits Claimed for Analysis	212500	232500	234500
Project Grand Total Benefits	679500
Benefits	Actual amount	After reductions in the amount	Unit	2018	2019	2020
Employees salaries	Rs. 25,000	Rs. 10,000	10	Rs. 1,00,000	Rs. 1,00,000	Rs. 1,00,000
National Insurance, Pensions or others	Rs. 11,500	Rs. 9000	45	Rs. 1,12,500	Rs. 1,12,500	Rs. 1,12,500
			Total Benefits	Rs. 2,12,500	Rs. 2,12,500	Rs. 2,12,500

1.  

	Fiscal Year
	2018	2019	2020
Undiscounted Flows
Costs	115500	100000	105500
Benefits	212500	232500	234500
Net Cash Flow	97000	132500	129000
Discount Factors
Discount Rate	7%
Base Year	2018
Year Index	0	1	2
Discount Factor	1	0.9346	0.8734
Discounted Flows
Cost	-115500	-93457.9439	-92147.7858
Benefit	212500	217289.7196	204821.3818
Net	97000	123831.7757	112673.5959
Cumulative	97000	220831.7757	333505.3716
Net Present Value	$       387,788.89
Fiscal Year	Discounted Flows				Discount Rate	7%
2018	97000				Base Year	2018
2019	220831.7757
2020	333505.3716	pay back year

Recommendations	Potential Barriers	Alternative Solutions
Redesigning of the delivery system	· Delivery system such as self sustaining delivery systems requires initial investment, which needs time to recover · Customers do not like waiting at the tables for their orders and billing and tend to become agitated · The introduced method of DIY (Do It yourself) is a very new concept for the customers and people, who are likely to reject the idea of helping themselves due to lack in the concept behind such an approach	· Increase Revenue by offering discounts during off-peak hours by snipping off the trend of three standard meals. Owing to financial constraints offering discounts during off-peak hours is a viable option for Café Zouk for increasing revenue utilizing the same resources and averting the rush of peak hours · Table Management can prove an effective operational strategy reducing waiting time for customers and improving seat turnover without costly capacity expansion. Managing table capacity efficiently also leads to revenue generation · Digital dining system helps in reducing wait times for customers at various points in their journey in the restaurant like for ordering, food delivery, billing time is the key to reducing wait time is to clear tables as soon as a party is finished eating. The bill payment process eats away valuable time and distracts waiters and waitresses from other tasks. With Buzz time’s digital dining system the customers are fully in control and can leave moments after dessert allowing customers to pay at their table through an automated system empowers them to leave when they want as waiters and waitresses can properly wait on them full time without distraction. This system would allow clearing the tables in minutes so another group can be accommodated.
Extended Training of the staffs	· In terms of educating, the staffs there can be instances of acceptance and rejection in case of implementation of new strategies. · The high cost incurring of the company can reduce the pay scale of the employees. The training requires a lot of time and money and most of the employees might not be willing to stay in the organization for a longer span. As a result the  new strategy and method can deliberately fail in its own terms	· Formulating of a lucid manual instructing to perform step by step related to the new strategy and technology can help the employees or the staffs to learn about the new procedure · Proper clarification to be given to the staffs for the purpose and the objectives of the training such as how to keep the quality under high work pressure and effective management in peak times

8. Conclusion

With the help of this report, it can be concluded that managing of the demands is one of the primary concerns that needs to be meet along with a new introduction of delivery system for customers who are unable to accommodate themselves into the dining place during the peak hours. The quality management is another concern that should be taken into consideration with utmost care since managing the different concerns or meeting the demands of the customers can directly or indirectly lay impact on the quality, which is considerably the main order winner of Café Zouk. Based on the results of the survey, it can be found that most of the customers are readily interested to adopt the self-checkout counters and the delivery systems.

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