Beans ‘n Cream Case Analysis
Beans ‘n Cream Coffeehouse is an organization that has existed since 2003, when it was founded by Caroline McCourt and Beth Mielcarek as a hobby. The business was founded in attempts to provide customers with a third spot or alternative to home and work. Actually, Beans ‘n Cream is regarded as a comfortable place where customers and establish and develop relationships while enjoying a good cup of coffee. In addition to its establishment as a hobby, the inception and eventual growth of Beans ‘n Cream Coffeehouse was fueled by the belief that good things take place over coffee. Since the inception of the business, it has continued to experience tremendous growth that is characterized by its growing customer base and expansion to new markets. Despite the success and productivity of the business since it was established, the founders are faced with a dilemma that could impact its operations. The growth in the customer base has resulted in a dilemma on whether to expand, control the traffic flow in its shops, and maintain the existing customer service level.
Beans ‘n Cream Coffeehouse has a history that can be traced back to 2003 when a partnership between Caroline McCourt and Beth Mielcarek was formed. Caroline’s journey towards the eventual establishment of this business started in 2002 when she discovered that she was always intrigued by the coffee shop atmosphere and started considering whether to open a coffee shop. This prompted her to carry several investigations, start networking, and undergo small business courses. These efforts towards actualizing the dream of opening a coffee shop culminated in the development of a relationship with Beth Mielcarek in the beginning of 2003. Together with Beth, Caroline visited coffee shops throughout the state, held discussions with owners of the various shops they visited, and asked for their suggestions.
After attending the Coffee Fest Convention in September 2003 in Seattle, Washington, they agreed to go ahead with their plan of opening a coffee shop. They opened the first Beans ‘n Cream coffee shop in October 2004 in Sun Prairie, which was a growing community with a population of more than 20,000 people. The ongoing growth of the area population was a major factor that made Caroline and Beth to establish their first coffee shop there. With a vision of creating a place where people from this region could enjoy a specialty of drinks, the company enjoyed tremendous success and profitability, especially in December 2006. This profitability was attributed to its high-quality products, good customer service, and successful marketing initiatives or campaigns.
Following the high profits in 2006, the company opened another coffee shop in Madison in June 2007 with the expectation of having a strong opportunity for sustainability and growth of the business. The huge population of Madison played a key role in Beth and Caroline’s decision to open a new coffee house in the area. However, the expansion proved futile since the company did not generate expected profits resulting in the eventual closure of the Madison shop in July 2009. Since then the company has continued to operate with its Sun Prairie store only where it has generated huge profits and experienced tremendous growth.
Bean ‘n Cream Coffeehouse is currently facing a dilemma regarding the most suitable business approach that would help cater for the huge number of its customers, which is constantly increasing. The increased popularity of the business’ Sun Prairie shop has contributed to long queues developing at the shop during peak hours. If left unaddressed, customers can easily become tired due to congestion and waiting and eventually decide to move to other coffee shops where there are no such challenges. While the increase in the number of customers is good for the business in terms of success and profitability, it has created a major dilemma for the business owners who are contemplating expansion. Even though the expansion could help deal with the overcrowding issue, the previous unsuccessful expansion initiative generates further doubts on whether it is viable option. Therefore, the hypothesis in this situation is whether expansion is a viable option that will help deal with the overcrowding problem at Bean ‘n Cream Coffeehouse Sun Prairie shop without negative impacts on current operations and productivity.
As previously mentioned, the main problem at Beans n’ Coffeehouse Sun Prairie shop is how to address the overcrowding problem in order to prevent any potential negative effects on its success and profitability. Generally, every company seeks to establish a huge customer base in order to be successful and achieve specific business objectives. One of the major ways through which companies deal with overcrowding issues is through expansion that is matched with the growth of the customer base and the firm’s reputation. While expansion seems to be the most ideal alternative for Bean n’ Cream Coffeehouse, it is coupled with concerns given the previously unsuccessful attempts. If expansion is adopted deal with the overcrowding issue, it could affect the firm’s operations and success just like it did in the previous situation.
The overcrowding issue could result in reduced profitability since customers are likely to tire of congestion and waiting. In such a scenario, the customers would move to other coffee shops, which would lessen the firm’s customer base and eventually affect its profits. Moreover, the overcrowding problem could lead to reduced productivity by affecting Beans ‘n Cream Coffeehouse’s reputation. Therefore, there is an urgent need for the business owners to find a suitable solution to the issue to prevent these probable long-term effects that could impact the shop’s operations.
One of the strategies that the company…