HOS203A Food Management: Case study of Freedom Hub Cafe

Introduction

The use of social enterprises is a new idea that consumers currently need to adapt to. Looking into the case provided by the consultants, we are engulfed in the situation of Sally Irwin who happens to have been working in the social enterprise space for a long time. Even though the level of her expertise alongside professional experience has been the key towards her rise to a senior position in the same field, it is her passion for doing greater good while faced with the women plight engaged in human trafficking that gave her credit. She came up with a charity while in Berlin for the purpose of funding of such victims as well as using a café as a vessel of raising funds as well as creating awareness for fighting the same cause. Currently, about the Index of Global Slavery, about 3000 individuals are living in Australia as slaves. Such is brought about by human trafficking. It is such a reason that Irwin decided to go for the Slavery Safe House where victims would be helped to be part of the workforce via engagement in training as well as being part of the network of the  “Coalition for Stopping Traffik in Australia."

Objectives

This research activity will:

1. Highlight the factors that are essential in the delivery of a dining experience of quality to the beverage and food consumers.
2. Perform calculations on beverage and food costings as well as provide the ratios that are used by beverage and food operations in the monitoring and optimization of profitability.
3. Look into the emerging trends as well as investigate future developments within the industry of beverages and food.

Scope of the Study

The organization in question is the Freedom Hub café which is found in Waterloo NSW 2017, 283 Young St, which also happens to be opened to the customers from Monday to Friday as from 6:30 am to 3:00 pm. Even though the café was mainly erected to produce funds for the purpose of supporting victims that they are engaged with, it is also a model that symbolizes proper practice with regards to having values aligned to its practices. The products that are used within the café are obtained from ethical suppliers and producers. For instance, the coffee beans are obtained from the Freedom Fighter organization. This coffee is grown and then harvested in the villages of Africa that rehabilitate and employ children that are rescued from military operations (Waterloo, 2017).

Methodology

The research activity confirmed from several literature sources that the population of Waterloo suburbs has increased by double figures within a period of ten years. Such a case was found to be associated with high-density type of housing developments growths within the area. Such was also due to individual desires to live nearer to the CBD of Sydney as a result of employment availability (Australian Bureau of Statistics, 2016). To support such statements, information was collected from the following literature sources:

1. Micro-environmental Analysis
2. Business Performance Analysis

• SWOT Analysis

1. Target market and segmentation analysis

The study proved that Sydney's Average Full-Time earnings within May of last year were $1,516.00 (Australian Bureau of Statistics, 2016). Apart from that, further analysis proved that the organization in question (Freedom Hub) operates within:

1. An average age of 32 years.
2. A population which constitutes a 53.6% for male individuals and 46.4% for female individuals

• Only 47.7% of the individuals speak proper English

21. Only 21.1% of the Waterloo inhabitants are married while 60.6% is unmarried
22. Of the available homes, 74.4% are rented while 4.7% are permanently owned.

Discussion

The context of analysis of the organization’s business performance shows that the rental value stands at $93,500 p.a. However, beverage and food costs stand at 35 % of the café’s total revenue. The wages stand at 25% of café’s total revenue while the utilities together with other expenses like maintenance, insurances, repairs, among other expenses, are approximately 10% of the revenue of the café. The café is also serving about 60 each day during lunch periods. Operations are carried out for 5.5 days each week. To add on that, around 200 coffees orders are served each day. The café also experiences an average dinner expenditure of about $30 per individual with around $3.50 per serve for coffee. There are also host functions on Sundays in which a 300% mark up is obtained on the total costs for such functions. In case the functions were to be charged at $90 per individual, approximately $30 on each would be on food, wages, and beverage.

The cash flow statement stood at: 

Recommendation

There is a constant growth in the number of international visitors that has led to a shift in the desires of the consumer from the regular kind of restaurant dining to one that is more casual. Customers also conform to going for living arrangements that are of high density within Waterloo. The organization in question (Freedom Hub), should, therefore, take advantage of the available macro environment which is also favorable to change their operations to meet the diverse customer needs. The café should also monitor the risks about the state of wages offered by the café. The workers in the hospitality department are earning more than enough thus there should be reforms on the same for the purpose of maintaining and attracting talent. The same should also be done for the penalty rates regarding hospitality workers alongside the negative impact likely to be inflicted on staff during unsociable evening or weekend shifts.

Conclusion

This research activity has discussed issues about decision-making processes in beverages and food within the hospitality and hotel industry. In the same context, the activity discussed and analyzed information on the services proposed by the organization in question. There was also a comparison of the financial aspect of the café regarding the utilization of the foods commonly used alongside the ratios of beverages. In the end, a recommendation relating to the manner in which the proposed concepts are aligned with the future and current trends in the beverage and food industry was provided (Qpzm, 2016).

Regarding analysis, this activity presumed that context of analysis of the organization’s business performance proved that the rental value stands at $93,500 p.a. However, beverage and food costs stand at 35 % of the café’s total revenue. The wages stand at 25% of café’s total revenue while the utilities together with other expenses like maintenance, insurances, repairs, among other expenses, are approximately 10% of the revenue of the café. The café is also serving about 60 each day during lunch periods. Operations are carried out for 5.5 days each week.

References

Aubusson, K. (2015, May 28). Slavery meets Sydney's elite at Freedom Hub charity event. The Sydney Morning Herald. Retrieved from https://www.smh.com.au/action/printArticle?id=996534304

Australian Bureau of Statistics. (2016). Australian Government. Viewed at 16 July 2017. Retrieved from https://www.australia.gov.au/about-australia/facts-and-figures/statistics

City of Waterloo. (2017). Living in the city of Waterloo. Waterloo.ca. Retrieved 16 July 2017, from https://www.waterloo.ca/en/living.asp

Freedom Hub. (2016). Document Freedom-Issue I. Retrieved 26 October 2016, from https://issuu.com/freedomhub/docs/freedomhub_issue_1

Mahmoud, A. 2017. The Impact of AirBnb on Hotel and Hospitality Industry | By Ahmed Mahmoud – Hospitality Net. Hospitality Net. Accessed 30 Jun. 2017. Available at: https://www.hospitalitynet.org/opinion/4074708.html

Marin, M. 2015. HB on the Scene. Hotel Business 24(7), pp. 11-12.

Qpzm. (2016). Waterloo Demographics (NSW) Local Stats. Retrieved from https://waterloo.localstats.com.au/demographics/nsw/sydney/eastern-suburbs/waterloo

Simister, P. (2011). Ansoff Growth Matrix –Four Ways To Grow A Business. Differentiate your business. Retrieved from https://www.differentiateyourbusiness.co.uk/ansoff-growth-matrix-four-ways-to-grow-a-business

The Boulevard Club. (2000). Weddings & special events- the Boulevard. Retrieved February 19, 2017, from https://www.boulevardclub.com/weddings

Waterloo. (2017). Quality of Life. Wearewaterloo.ca. Retrieved 16 July 2017, from https://www.wearewaterloo.ca/en/community/qualityoflife.asp