Strategic & Operational Plan 2018-2022 Gourmet Bean Australia Gourmet Bean Australia Strategic and Operational Plan Nov 2018 1 Executive Summary Established in 2018, Gourmet Bean Australia is a café chain based in Sydney that specialises in the gourmet coffee, breakfast and lunch for the busy and health-conscious client demographic. Our vision to be the best café chain in Australia drives everything we do from the friendly greeting we give to customers at our cafes to our supplier relationships and to our employees’ professional development. Vision To be the best café chain in Australia. Our values are: Core values underpinning our activities are: • Quality • Innovation • Leadership • Respect • Honesty and Reliability Strategic Priorities Key strategies To be well led, high performing, profitable and accountable o Ensure that all financial operations, performance indicators and results support the strategic policies o Identify new and expand existing sources of revenue o Achieve profits of at least 10% per annum. Create consistent, high quality coffee and food products to meet customer needs and aspirations Gourmet Bean Australia Strategic and Operational Plan Nov 2018 2 • • • Increase sales in current Sydney market by 10% per annum over the next three years. Establish a presence in Queensland and build at least 2 new cafes in Brisbane and the Melbourne during the period of the Strategic Plan. Research and plan for the launch of new innovative, environmentally friendly initiatives Continue building deeper customer relationships • Customer-centred practice, with a focus on meeting their total needs • Strengthen the skills of our people, to better support customers • Drive innovation to better meet customer demands and social responsibilities Attract, engage and develop the best staff • • • • Continuing the drive to a customer centred, high-performance workforce and culture Strengthening the skills of our people, to better support customer needs Empowering innovation and responsiveness to change Continuing to enhance the diversity of our workforce. Gourmet Bean Australia Strategic and Operational Plan Nov 2018 3 Our Operational Objectives The following table identifies the operational objectives we plan to achieve in pursuit of our strategic objectives. Date Priorities June 19 Employ at least three permanent Sydney staff July 19 Commence recruiting for key positions in Canberra and Melbourne August 19 Develop and implement work-life balance programs Oct 19 Commence promotions in the Canberra and Melbourne market Objective met by: Sydney staff in place Key staff established for Canberra and Melbourne Increased employee satisfaction as measured by surveys Presence in Canberra and Melbourne established Staff performance reviews All staff performance reviews conducted Jan 20 Develop and implement strategies for increasing number of women in the workplace Number of females in company increased by at least 4 by mid-2021 March 20 Commence design of environmentally friendly cafes Designs completed November 19 2020 Locate new locations for café builds April 20 Gold Coast x 1 Locations confirmed Additional in Canberra and Melbourne September 20 Launch new location cafe Gourmet Bean Australia Strategic and Operational Plan Nov 2018 Café launches complete Staff in place 4 Café operational November 20 Staff performance reviews All staff performance reviews conducted Review other potential markets Potential markets explored Analyse workforce diversity Diversity report and analysis complete 2021 Feb 21 Sept 21 Staff performance reviews All staff performance reviews conducted April 22 Review supplier contracts Supplier contracts reviewed, improved and signed September 22 Review and investigate Environmental practices November 22 Commence Strategic Plan review and update Nov 21 2022 CSR Analysis complete CSR Policy in place and changes managed Prepare new Strategic Plan 20232027 The market Market characteristics & conditions The hospitality industry had been facing a stagnant phase in recent times, however experts predict a turn around, providing real opportunities in the sector. Although much of the hospitality industry is expected to see real growth in the coming 12 months, it is the cafe sector that should experience the most. The Hospitality Association recently released the summer 2015 edition of its National Outlook and announced that this year would see a new record of cafe commenced. According to the statistics, a record 195,936 new dwelling commencements are forecast in 2014/15 - a 7.7 per cent growth on the previous year. It is also important to note that this represents the third year in a row where residential hospitality has improved - a vital part of the overall Australian economy. Gourmet Bean Australia Strategic and Operational Plan Nov 2018 5 Although 2014 saw a rise in overall numbers, a significant portion of café approvals never started- sparking further opportunities when these began in 2015. Project Managers, Structures Forepersons and Commercial Contract Administrators will be at the top of any wish list for hospitality businesses this year. Although a number of states are set for an increase, the Gold Coast is predicted to experience the most growth. If you are to compare all the major industries of Australia - hospitality, manufacturing, engineering and mining - hospitality is the only one that is expected to see real growth in the coming years. Globally it is expected that the hospitality industry will grow from $7.2 trillion to over $12 trillion. The global hospitality industry has a number of challenges and opportunities according to a recent report by Global hospitality Perspectives and Oxford Economics. A number of factors are expected to affect outcomes: • Countries’ decisions with respect to carbon reduction, climate change, waste disposal, clean technology and renewables. • Emerging economies in general are expecting large population increases in the coming decade creating demand for hospitality activity whereas population growth in developed countries will be flat. • Relatively speaking developing countries are expected to grow at 2 to 3% per year and emerging countries at 6 to 7% per year. • Emerging countries currently represent about 35% of global hospitality output and this is expected to increase to 55% by 2020. • The key area of hospitality growth in emerging countries will be infrastructure: transport, energy, social infrastructure, schools, hospitals, government accommodation, water, defence infrastructure and natural resources. These projects are expected to increase by 130% in developing countries by 2020 but by only 20% in developed countries. • Amongst developed countries North America is will see the highest growth rate mostly in hospitality which will grow at double digits annually. South and Central America, the Middle East and Africa will grow moderately with Western Europe seeing the lowest growth. • Eastern Europe and Russia are expected to expand hospitality by 100% primarily led by Poland and Russia by 2020. • China is expected to become the world’s leading hospitality market by 2018 with a hospitality output of $2.5 trillion. In the future, trends in technology, particularly information technology (IT), may be the greatest driver of change in the hospitality industry. Electronic tendering and documentation, data communication, virtual design, shared project data and databases, Gourmet Bean Australia Strategic and Operational Plan Nov 2018 6 hospitality automation, and energy management will have a significant impact on industry practices. Those parties that are slow to react to these trends will have difficulty in remaining competitive. Gourmet Bean Australia Strategic and Operational Plan Nov 2018 7 Situation Analysis Strengths Ø Value and quality Ø Strong management Ø Customer loyalty Ø Friendly organisational culture Ø Level of available finance for investment Opportunities Ø Potential for growth in Brisbane and Gold Coast markets Ø Growth into other states Weaknesses Ø Focus on Sydney market only (current) Ø Brand name not developed as yet Ø High turnover of casual workforce Ø Lack of diversity in workforce Ø Lack of Environmental processes Threats Ø Environmental effects Ø Changes in Industry/ Government legislation affecting hospitality industry Ø Innovation in technology to be Ø Possible adverse effects of Ø Promote environmental Ø High level of competition closely monitored initiatives into marketing and costs government policy formulation Ø Failing to satisfy clients demands Ø Staff changeover Ø Supplier restrictions Gourmet Bean Australia Strategic and Operational Plan Nov 2018 8 Marketing Strategies Our marketing strategies aim to: • • • • build trust generate faithful client base help to reduce carbon footprint and be environmentally friendly promote out brand as the best We plan to develop our market share by: Ø Improving our marketing and advertising Ø Continually improving the quality of service given to clients Ø Maintaining effective communication channels with all stakeholders to ascertain industry requirements and then develop products and manage services accordingly Ø Continually improving communication channels with all our stakeholders, ensuring a flow of timely and accurate information to facilitate effective planning and decision making Ø Targeting identified growth markets with planned, market appropriate campaigns employing a variety of promotional strategies and advertising mediums Ø Offering attractive costs and return customer rewards based system to our clients Ø Continually improving the skills, knowledge and effectiveness of Gourmet Bean Australia through our commitment to training and development Ø Regularly reviewing the effectiveness of all our operations and making improvements when and where necessary Gourmet Bean Australia Strategic and Operational Plan Nov 2018 9 Risk Management The following section identifies the associated risks in pursuit of our strategic objectives and how we will deal with them. Strategic Objectives 1. To be well led, high performing, profitable and accountable 2. Deliver high quality coffee and food to meet customer needs and aspirations 3. Continue building deeper customer relationships 4. Attract, engage and develop the best staff Risk Ø Ø Ø Ø Ø Ø Risk Ø Ø Ø Ø Ø Ø Ø Risk Australian government changing policy in relation to industry Accepting policy change will be a constant factor to manage An understanding of this should be instilled in all staff Develop ability to foresee and react quickly to change Maintain effective communication channels with stakeholders Diversification of source markets Develop product range Significant drop in cash flow Identify operating costs as per future plans and past performance Identify available finance available Efficient invoicing and debt recovery Accurate income projections Close monitoring of expenditure Arrange overdraft facilities Scenario planning Failure to recruit well Gourmet Bean Australia Strategic and Operational Plan Nov 2018 10 Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Risk Ø Ø Ø Ø Ø Ø Ø Ø Skilled motivated staff Attractive fee structures Monitor performance Take early corrective action if not meeting targets/ expectations Maintaining effective relationships with clients Maintaining effective communication channels with all stakeholders Development of HR policies and procedures Offer attractive salary package Provide opportunities for career progression Develop stimulating and enjoyable working environment Commitment to training and development Commitment to professional development The world recession and the domino effect Diversification of target market Target markets with strong growth forecasted Monitor the economic trends Regularly review performance in line with anticipated market conditions Develop culture of accepting continual change React quickly to change Scenario planning Maintaining effective communication channels with all stakeholders Gourmet Bean Australia Strategic and Operational Plan Nov 2018 11
