Coffee Republic Investigation (Investigate a major business experiencing difficulties.)

There is great optimism among coffee bar companies that the upward trend in sales will continue, however currently none of the leading chains are covering their costs and making a profit. Although cafe bars are often very busy, have a sleek interior and charge upto £2 a cup of coffee, the intense competition and rapidly increasing burden of rent and rates have had the consequence of substantial financial loss for the operators. Coffee …

…Coffee Republic should rethink their approach to getting out of this crisis. Instead of continuing with their expansion strategy, they should look into their marketing plan and improve ways of satisfying customers needs, by doing this they could perhaps find a way of boosting sales before closing down more branches. However, if this is not successful then they should sell or close bottom end shops to improve returns on capital from the better improving sites.