Cafe Since 1952, the Restaurant

¶ … Cafe Since 1952, the restaurant and food retailing business has gone through massive change, yet the one constant continues to be customer loyalty and trust. The Broadway Cafe has firmly established itself as a trusted provider of food and a unique dining experience. Customers have no doubt tolerated occasional errors in orders due to the manual systems, the fact that the Cafe runs out of the most popular entrees ingredients, and the lack of 21st century technologies including free WiFi access.

Yet despite these limitations that many customers must perceive as quaint, there is the more concerning aspect of their customer base aging, in some cases passing away, and an entirely new generation of customers with higher levels of expectations being critical to the financial viability of the Cafe. The intent of this analysis is to make a series of recommendations from a customer relationship, marketing, and supply chain and purchasing standpoint.

Customer Relationships Regis McKenna, noted marketing expert, author and founder of several high tech companies, has often remarked that customers' perceptions and expectations need to be a company's reality if it is to grow (McKenna, 1995). Seth Godin has also made these observations as well. In the food retailing business, trust leads to customer loyalty, which eventually translates into restaurants and food establishments becoming part of a customers' routine.

With the new generation of customers who have much higher expectations of free Wifi, participation of the Broadway Cafe on Facebook, Twitter and other social networking sites, and websites that promote specials and provide coupons, the existing strategies are beginning to look archaic. The offer of free Wifi is seen as exceptionally valuable, as more high-end hotels charge $10 or more a day to just access the Internet; it is seen as a strong service differentiator by customers below 40 years of age (Brus, 2005).

In addition to Wifi access, participation on Facebook and Twitter, and websites promoting specials, there is also the fundamental need on the part of the Broadway Cafe to listen more closely to what customers are saying. Social networks are excellent platform for listening to and interacting with customers (Bernoff, Li, 2008). In fact the merging area of social CRM is critical for staying connected with the next generation of customers for The Broadway Cafe.

There is also a major change happening with the expectations of the next generation of customers, and capturing this through CRM systems is critically important. The use of salesforce.com is recommended as this is an entirely Web-based application that can scale to meet the Cafe's unique needs. In conclusion on customer relationships, the Cafe cannot lose the trust of customers or their relevancy to them. Concentrating on these areas will help attract customers from this generation. Marketing Customers choose how they want to learn about and interact with businesses.

While the last 50+ years of the Cafe has been more driven by personal relationships, the current generation chooses to use the Web and social networks. Marketing as a result must embrace digital content strategies and delivery coupons regularly to clients over Facebook, Twitter and other platforms. It must also seek to create mailing lists that can be managed through hosted platforms including Constant Contact. In short, the Cafe must redefine its marketing strategies to reflect how its customers want to learn and evaluate the Cafe.

The total experience of the Cafe needs to be evaluated from the context of enhancing the customers' valuation of it; not staying stuck in the past and coasting on quaintness and customer loyalty. Supply Chain and Purchasing Today the supply chain function of the Cafe consists of an inventory order list and a telephone call to food distributors when supplies run low. The Cafe needs to consider how to use system development initiatives to create more effective automated replenishment.

Automating supplies ordering and inventory balances is crucial for ensuring customer satisfaction over time (Ritchie, 1990). This approach to automating the sourcing and replacement process also needs to take into account the cost of lost sales due to out-of-stocks of key ingredients for the most popular entrees (Kator, 2007). Combining these development strategies and the latest network-based order management systems.