Tim’s Coffee Shoppe

Tim’s Coffee Shoppe

Executive summary

Tim’s Coffee Shoppe is one of the leading coffee restaurants within Sunnydale, Illinois. Tim Slick is a sole proprietor the restaurant business but is looking for ways to expand his brand. Currently, the restaurant employs ten people. Growing the business means the restaurant must improve customer service. After analysis of the restaurant, it is evident that Tim needs to invest more or look for a partner. The restaurant is located in an area where there are many business offices, a transit system, and the University. Despite being located in an area with many potential customers, the restaurant is small and cannot serve all the customers in the area. Meanwhile, restructuring could help solve Tim’s Coffee Shoppe challenges.

Regulation management

Starting a business requires the understanding of local, state, and federal regulations. Therefore, the well-being of Tim’s Coffee Shoppe depends on compliance with local, state and federal regulations regarding sole proprietorship. While there are regulations that are only important to the management, there those that are concerned with the workplace. It is important to ensure that all employees are aware of such regulations. For instance, the employees should be aware of the Occupational Safety and Health Act (OSHA) which requires employees to create a healthier and safe working environment. As the owner of the business, Tim should ensure that all new hires understand the OSHA regulations. Tim should also implement the Wages and the Fair Labor Standards Act, the Equal Employment Opportunity Commission, and the Workers Compensation Act. The Wages and the Fair Labor Standards Act require Tim’s Coffee Shoppe to pay employees according to the established minimum wage, overtime pay and implement the child labour standards. Tim should also ensure there is no workplace discrimination by fulfilling the Equal Employment Opportunity Commission guidelines. Employees injured at the workplace should be compensated for lost wages, medical care, and vocational rehabilitation, according to the Workers Compensation Act. Apart from federal laws and regulations, Tim needs to be aware of the local rules. For instance, a restaurant operating in Illinois should be aware of the Illinois Dept. of Public Health Food Handler Enforcement Act (2019). The Act requires all employees handling food in a restaurant to complete a certified training course to equip them with the basics of safe food handling.

Operating a restaurant business may not be possible without a written code of ethics. Tim needs to apply managerial skills to develop a code of ethics that will guide employees in the workplace. Among the issues that Tim should foster is respect, customer service, and time management. Apart from the code of ethics, Tim Coffee Shoppe should have a progressive employee disciplinary system. An employee is issued with a warning letter as a means of deterrence. Employees issued with three warnings are terminated. Employees are given a fair hearing before a decision to issue a warning or termination is reached. Tim should have monthly meetings with his staff or set up an individual meeting with his staff members to allow them to voice their concerns or opinions about the restaurant. Though the meetings, Tim will be able to uncover some of the challenges employees are going through in their workplace.

As the owner of the business, Tim should develop and portray a clear vision statement to ensure that members of his community trust the coffee shop. Also, Tim shares the message that the restaurant is innovative, provide high-quality products and excellent customer service for all. These initiatives will attract the attention of the community, and as a result, Tim will be admired and respected. Tim’s short terms are to build and nurture customer relationships, collaborate with his staff members to brainstorm new ideas and keep the coffee flowing in a positive atmosphere. Apart from the vision and quality statement, Tim should establish a short and long-term plan. Tim’s short term goal is to build and nurture customer relationships, collaborate with his staff members to brainstorm new ideas and keep the coffee business moving in a positive atmosphere. The long term goal is to establish the brand for loyalty, improve the profitability of the business, and aim for excellence.

HR Analysis

From the analysis conducted on Tim’s Coffee Shoppe employee files, it was found that some of the employees are not upholding the standards set by Tim’s Coffee Shoppe. This is a sign of weakness in leadership. For instance, two employees have received more than three warnings on different occasion but are still employees of Tim’s Coffee Shoppe. Also, four employees have not received a performance review since being employed at Tim’s coffee shop. In the proper management of human resources, all employee files should be updated periodically and maintained. According to Lexology (2006), it is essential to review all personnel files regularly to ensure that essential documents are up to date. As the owner of the restaurant, Tim review the records at least once a year. At the same time, he should check their personnel files to confirm that they include all the necessary documentation.

Marketing analysis

The analysis conducted shows that Tim uses word of mouth and flyers as the primary marketing channels. Flyers are distributed throughout the University, the transit system, and the various businesses offices. Tim can improve the number of people reached by advertising the coffee shop using a clearer and detailed signage. Tim can also create a website for the coffee shop where different products are promoted. Apart from creating a website, social media provide a platform the Tim can use to reach a wider audience. He should create accounts on different social media web pages and also encourage patrons to take pictures while at the coffee shop and post them on their social media accounts. Another way to market the coffee product is to offer deals in the local newspapers & magazines. In addition to the marketing strategies, Tim can gain new customers by listening and adhering to the customers’ concerns and complaints. Lastly, he can acquire new customers by occasionally having special offers and discounts.

SWOT Analysis

Strengths: Closeness to the University, the transit system, and live entertainment joints

Weaknesses: small coffee shop, untrained employees, and use of less environment-friendly products

Opportunities: Ability to attract more customers within the community, access to talented individuals from the university and transit system, and the ability to expand the coffee shop.

Threats: The Queenquegs coffee shop is Tim biggest threat

Economic Environment/Finance and Accounting/Financial Statements

After analyzing the various forms of business, a limited liability partnership (LLP) is the best fit for Tim’s Coffee Shoppe. Financial analysis indicates that Tim is reinvesting more profits. For instance, Tim’s Coffee Shoppe’s earnings in 2017 were $475,680. After making all the payments, the profit was $19,708. To enhance the profitability of the business, Tim needs to look for an individual who is ready to invest in the restaurant business. A combined effort means more investment and more net earnings at the end of the year.

Problem Solving/Recommendations

One of the recommendations is the expansion of the coffee shop that can accommodate more customers and generate more revenue. To attract more people, Tim should try being ecofriendly. Today, many consumers would like to be associated with eco-friendly products. Implementing a proper disciplinary system is also essential. Employees with numerous warning should have their contracts terminated. Ensuring that the vision of the coffee shop is championed requires employees that share Tim’s vision. Besides establishing the right culture, Tim should look for a partner who can invest in the business. Lastly, the restaurant business is good, but Tim needs to do more marketing to reach a wider audience.