TMA: 01

PART: 1

DATE: 28.10.2013

To: Patricia Lodge

Part (a)
Lodge Bistro Chain Case Study

As you requested I have looked in to the case study based on your business and have noted six areas using study session 2. 2.4 (SWOT Analysis) that I believe are of the most concern starting with the most important issues that need to be addressed as quickly as possible moving forward.

The issues and problems I have found within your business starting with the biggest are as follows:

1: Growing competition in the sector from fast food chains, coffee bars and independent restaurants.

2: Below standard food and service being reported by mystery diners.

3. High serving staff turnover in the East Cheam bistro.

4. A lack of clear direction in the business as a whole.

5. An old fashioned and dated feel in most of the cafés.

6. Core consumers which are mainly older are spending less and cutting back.

The poor food and service is having a detrimental effect on the business and standards are not being met which could lead to customers being driven away and new customers being put off.

The growing competition is continually making it more difficult to keep customers which could drive some bistros out of business.

The core market are spending less and less these days which is having a direct impact on the profitability of the business.

1
TMA: 01

PART: 1

DATE: 28.10.2013

Part (b)
Lodge Bistro Chain Case Study

S.W.O.T Analysis Table
STREGNTHS

1. Established brand
2. Twenty five restaurants across England
3. Committed CEO, Miss Patricia Lodge
4. Computerised financial reporting
5. Popular with the older demographic
6. Long company history
7. Track record
WEAKNESSES

1. High staff turnover
2. No clear vision
3. Inconsistency within management
4. Not catering to the younger demographic
5. Dated décor within the bistros
6. Pressure on existing staff
7. Lack of communication between managers
8. Poor service
9. Poor food
OPPOURTUNITIES

1. Improve communication with managers
2. Offer healthier eating options
3. Modernise décor within the bistros
4. Cater to the environmentally conscious consumer
5. Target a broader market
6. Improve customer service
7. Offer WiFi in bistros
8. Change the overall menu
9. Improve the brand
THREATS

1. Growing competition in the sector
2. Poor location issues
3. New managers leaving due to longer-serving managers complaints
4. Copycat rivals
5. Loss of core market when making changes
6. Rivals poaching staff
7. Inability to change with the times

The SWOT table above is useful to your business as it highlights a lot of opportunities available to the business right now which if implemented could lead to improved profit margins.
There are also weaknesses which if not addressed could result in reduced financial income or worse, closure of your business in the coming months if the are not looked in to.
There are issues with “High staff turnover” (Lodge Bistro. Case study) which need to be addressed as current staff are under pressure which is part of the reason why
“The food service and quality are below the standards set out by the company”
(Lodge Bistro. Case study).
The “Somewhat dated” (Lodge Bistro. Case study) décor shows that change needs to be made within the