POONA COFFEE HOUSE

Improved operations under new management

It looks as if a miracle has taken place. Poona Coffee House stands at the same place, opposite
Deccon Gymkhana bus stand, one of the busiest places in the town where it is operating for the
last 15 years. As against a morose outlook it used to give with hardly 15-20 customers at a time,
perhaps outnumbered by a motley crew of unshaven and disheveled waiters slouching around,
now it’s a bustling place with at least 100-150 customers at any time of the day. These comprise
college students, family groups and people from almost all walks of life. The reason is that the
place has been bought over by a young entrepreneur and is thus under new management.
Poona Coffee House was started by one Mr. Bhave who has considerable experience in running
restaurants. He has two more restaurants running in the town which is doing fairly good business.
One of the two also offers lodging facilities. Surprisingly, Poona Coffee House could never do well.
No systematic efforts were made to improve the working. So when he was made a lucrative offer
some four years ago by Mr. Nand Kumar Shetty, he jumped at it.
It is quite strange to note that Mr. Shetty has no previous experience in the line. He was in the
Indian Army and retired at the rank of a Major. Neither does his family have any prior experience
in the catering line, though the community is famous for the same.
Mr. Shetty completely renovated the place by putting in attractive interior decoration. The menu
offered was also trebled thereby giving a wide choice to customers. Even though it was kept as a
vegetarian restaurant, South Indian, Gujarati and Punjabi delicacies were also offered. Some other
entertainment items like stereophonic music were also added.
The unexpected degree of success has baffled Mr. Shetty himself. So much so, that he has even
stopped borrowing from the banks for his working capital requirements within only six months of
commencing operations. Today, Poona Coffee House is the talk of the town, and a favourite
rendezvous for all who want to have a nice meal in a congenial atmosphere.

Question : "Poona Coffee House could not do well." What were the reasons?

Answer : Mr. Bhave who is the owner of Poona Coffee House, his negligence was an important
reason that Poona Coffee House could not do well. As Mr. Bhave had two more restaurants in the
town and his income was getting better than those restaurants, that was the reason why he never
showed any interest towards Poona Coffee House nor made any efforts to renovate it or anything.

Introduced a new idea would be a better option that attract customers towards the Poona Coffee
House because it is a matter of note that despite the crowded area, there was a shortage of
customers in Poona Coffee House. Mr. Bhave would have shown some interest if he had made
some changes such as waiters with nice get-ups and new changes in the menu list that give the
customer more options, also new decorations with decent music in the coffee house that
refreshed the atmosphere and pleases the customer's heart.

Having good experience in the restaurant line, Mr. Bhave had a better chance to do well with
Poona Coffee House but due to his irresponsible actions towards the coffee house and no
systematic effort are the main reasons that Poona Coffee House did not do well.
Question : How did the new management bring changes required to make the Coffee House
a success?

Answer : Mr. Nand Kumar Shetty who was a retired Major from the Indian Army and who had no
previous and prior experience in the restaurant line despite all this the Poona Coffee House has
now running successfully and it is now becoming the talk of the town. It is the result of putting
some great efforts from the Poona Coffee House's New Management and also the community was
famous for the same which led to the Poona Coffee House becoming famous now. The reasons are
given below :

1. The New Management renovated the first Poona Coffee House with new heartfelt-interior
decorations that caught the attention of the peoples passing through there and entice them to
come there.

2. The New Management also gave a lot of options in the food menu, so that customers can choose
to eat the food of their choices and the food of different varieties under one roof is also a plus
point for the customers and as well for the management too.

3. Despite the management decided to keep the restaurant as a vegeterian one, but the food
options like South-Indian, Gujarati and Punjabi are available in same room managed to bring the
customer to the restaurant.

4. And last but not the least, Entertainment has become such that that icing on the cake because
Now Customers started enjoying food and music as well as which made them like to come there
again and again.

There decisions which was taken by the new management, were the main reasons that Poona
Coffee House was becoming famous in the town.

Question : What is your learning from this case study ?

Answer : From learning this case study, we came to know that for any business to run well, it is
not only necessary to have knowledge of it, but it is necessary to run a business successfully that
working hard in it, Constantly trying staying, Constantly making changes that entice customers
from time to time. Taking care of People's likes and dislikes keep updating over time. Maintaining
sobriety during business losses and taking decisions at a time that drives the business smoothly
and working hard, especially to improve by making mistakes and most importantly, not to break
down during tough times and to stand firm should do.

Mr. Shetty showed in this case study that if you have firm intentions and you want to make
yourself successful then you have to be devoted towards your work. You have to give time to your
business and take care of the needs of the business. Always have to think of ways to entice people
in your business. You have to mix yourself with the thinking of your customers. The customers, I
know have to do so that your business can run successfully.

Constantly making necessary changes in business, keeping the atmosphere cool where the person
who feels good in it gets the habit of coming there again and again, that yes this place is in my
comfort zone and since you have changed your business according to the choice of people and
there comfort zone then took a shield, Because no one can stop stop your business from being
successful.