Build Or Buy: Starbucks Food Shop Regina S. Rudolph

Build Or Buy: Starbucks Food Shop REGINA S RUDOLPH Strayer University July 31, 2017 Small business Startup Strategy

The business is a Starbucks that will offer high-quality coffee varieties with specialized customer care services. It will provide whole bean, Enriched Verismos, and Verismos pod coffee. Emphasizing the development and delivery of high-quality coffee along with personalized customer service will be a key competitive advantage in navigating industry barriers (Lechner & Gudmundsson, 2014; Drucker, 2017).

The initial menu will mirror existing offerings but will differ by including doorstep delivery for offices and introducing enriched lemon coffee drinks. Additional food items such as pastries, tea, and soft drinks will be complemented with new lunch and dinner menus designed to capture a broader customer market segment. Lunch offerings will include salads, seafood, soups, beef, cornmeal, and potato dishes, while dinner options will feature chicken, beef, rice stews, and legume-based dishes like green grams and beans.

The layout of the facility will feature a food rail leading customers to their preferred seating while viewing the menu, with sample menus on tables and large, visually appealing menus on strategically located wall panels. These menus will include colorful images of food in a natural environment setting to create a serene ambiance. Windows will facilitate proper ventilation, large doors will ease congestion, and fluorescent lighting will ensure adequate illumination. Neon signage will promote business advertising, and walls and floors will be maintained spotless with regular cleaning.

Strategically placed water dispensers will ensure access to hot and cold water, and the ordering and payment counter will be positioned near the entrance to minimize disturbance to diners. A low-volume music system will provide background entertainment, enhancing the dining experience (Drucker, 2017).

The location will be in the city center on a busy highway with a high density of residents and shopping malls, ensuring a continuous flow of potential customers. The site will be well-lit with public floodlights, enabling 24/7 operations. Adequate parking and pedestrian pathways will support customer convenience.

The staff will be highly trained, professional, and presentable, with uniforms for easy identification. They will be skilled in restaurant service standards to ensure quality food preparation and customer interactions. The business will accept multiple currencies based on current exchange rates and offer take-home services and ingredient sales. Receipts will be official and stamped, with contact information included. Additionally, outside catering services will be offered to enhance the business’s regional reputation.

Choosing whether to build a new business or buy an existing one presents distinct advantages and challenges. Building from scratch allows for complete customization of the facility and layout, avoiding the repairs and modifications often associated with purchased structures (Hatten, 2015). Although buying an established business might provide immediate reputation and customer base, it could also entail deep renovation costs and possible legacy issues that hinder branding efforts. Legal permissions and property ownership considerations must also be factored into either decision.

The entrepreneurial structure will be a partnership among three partners—myself, and schoolmates Dave and Holwer—initially contributing equal capital shares, with potential subsequent contributions based on changes in ownership ratios. The partnership nature facilitates shared benefits and liabilities, with plans for later adjustments as the business grows.

Ethically, the business will operate 24/7 with staff working in shifts, maintaining positive relationships with customers and the environment. Corporate social responsibility will be prioritized through charitable endeavors and sustainable waste management. Building anew offers better control over finances, branding, and operations, whereas purchasing may introduce risks related to existing reputation, requiring substantial marketing efforts to reposition the brand (Kusumaningrum & Hidayat, 2016).

Social responsibility will be integral from the outset, emphasizing customer satisfaction, quality products, pricing fairness, and positive engagement. Market research will guide product offerings to meet customer preferences, ensuring ongoing loyalty and competitiveness (McKeever, 2016). Effective advertising, timely supplier payments, staff rewards, and community involvement will foster a positive public image, contributing to the business’s long-term success.

Paper For Above instruction

In the highly competitive food and beverage industry, choosing whether to build a new coffee shop from scratch or purchase an existing one is a strategic decision that involves multiple considerations. The decision hinges on factors such as control over design and layout, financial implications, market positioning, and operational flexibility. This paper explores these aspects by analyzing the benefits and drawbacks of both pathways and proposing a sustainable business model for a Starbucks-style coffee shop aimed at capturing a broad customer base in an urban setting.

Starting with building a new establishment offers significant advantages in customizing the environment to match brand vision and customer experience goals. It allows the entrepreneur to design a layout replete with strategic features such as a food rail, sample and large menus, optimal lighting, ventilation, and aesthetic elements aligned with health, safety, and branding standards. Construction from the ground up also provides the flexibility to incorporate modern amenities, such as Wi-Fi, entertainment systems, and environmentally sustainable practices, which are increasingly valued by urban consumers (Hatten, 2015).

Moreover, building anew minimizes the constraints associated with existing structures, such as outdated layouts, structural deficiencies, or legacy issues. It also simplifies the legal and compliance process, as the startup can work closely with local authorities from inception, ensuring adherence to zoning, safety, and health regulations. However, this approach requires a significant upfront investment in land, construction, permits, and infrastructure, which may extend the timelines before generating revenue. It also bears risks related to construction delays and unforeseen costs. Despite these challenges, a newly built outlet can serve as a flagship establishment, setting a high standard for future branch development and brand recognition.

Conversely, purchasing an existing business could expedite market entry by acquiring an operational asset with an established customer base, supplier relationships, and operational practices. It mitigates some of the risks associated with the construction process and may offer immediate cash flows. Nonetheless, the integration process can be complex; existing reputation, customer perceptions, and operational inefficiencies could pose hurdles for rebranding and repositioning efforts. Significant renovations might be necessary to align the existing site with the new business vision, raising costs and care needed to preserve or improve reputation. Furthermore, legal considerations and ownership rights could complicate acquisition, especially if the property or business history involves liabilities.

From an entrepreneurial standpoint, forming a partnership among trusted individuals, such as close friends or colleagues, provides shared responsibility, financial input, and diversified skills. This collaborative approach spreads risks and enables pooled capital, which is beneficial given the substantial investment required for either building or buying. The partnership agreement should delineate profit sharing, roles, liabilities, and exit strategies, ensuring transparency and operational harmony (Lechner & Gudmundsson, 2014).

Ethical considerations are central to sustainable business operations. The enterprise will maintain a 24/7 service model with shift-based staffing, ensuring consistent customer service and operational efficiency. Commitment to corporate social responsibility (CSR) will include environmentally friendly waste disposal, community engagement through charitable activities, and maintaining positive relations with customers and staff. The business's ethical stance fosters a strong brand reputation, customer loyalty, and long-term success (Drucker, 2017).

Social responsibility measures complement the core business strategy by emphasizing high-quality products, fair pricing, and responsive customer engagement. Market research will inform product diversification, ensuring offerings meet local preferences and cultural tastes. The business will also leverage digital marketing and community outreach to build brand awareness and strengthen customer relationships (McKeever, 2016). Employee training, timely payments, and rewarding staff performance are vital for fostering a motivated workforce committed to service excellence.

In conclusion, while both building and buying present unique advantages and risks, the decision hinges on specific strategic goals, resource availability, and risk appetite. Constructing a new outlet provides control, customization, and brand identity, aligning well with long-term expansion plans. Meanwhile, acquiring an existing business can accelerate market entry, albeit with potential integration challenges. Ultimately, a comprehensive analysis aligned with clear vision, operational plans, and financial capacity will guide the optimal choice for establishing a successful Starbucks-style food shop in an urban setting.

References

• Drucker, P. F. (2017). The Theory of the Business. Harvard Business Review Classics. Harvard Business Press.
• Hatten, T. S. (2015). Small Business Management: Entrepreneurship and Beyond. Nelson Education.
• Kusumaningrum, I., & Hidayat, H. (2016). Learning Outcomes in Vocational Education: A Business Plan Development by Production-Based Learning Model Approach. International Journal of Environmental and Science Education, 11(18).
• Lechner, C., & Gudmundsson, S. V. (2014). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), 36-60.
• McKeever, M. (2016). How to Write a Business Plan. Nolo.
• Additional references to reinforce concepts and industry standards would be included here following appropriate academic citation styles.