SWOT Analysis

The SWOT analysis examines the Cafes strength and weaknesses that need to be addressed. Therefore,
this section examines the opportunities presented to Café as well as potential threats.

Strengths

 The fact that it is not franchise, the Cafetate is a unique coffee shop concept unlike any other in
the Baguio city.
 Expertise and excitement would be brought to the business by the baristas.
 Effective sales and service culture.
 High service culture. The customers should expect high-quality service, such as a clean
environment, good ambiance, decent seating arrangements, and clean servers and employees.
This is due to the fact that all of these minor details offer the appearance of a healthy culture.

Weaknesses

 Franchise coffee shops are the simplest and frequently the safest method to start a café, however
our café will not be supported by one of these established corporations.
 The Cafetate has a minimal budget and is competing against larger and more established coffee
houses for market share.
 Strong existing competitors such as Starbucks and coffee project.

Opportunities

 The demographics support the need for a unique coffee shop.

 Additional opportunities to target the active and recently retired target market and 50 years+ age
group.
 Demand for home delivery services.
 Broaden our product range to target new segments.

Threats

 Competitors providing more “value add”

 Being underpriced by more efficient competitors.

PEST Analysis
PEST analysis is used to assess the macroenvironment of the coffee shop. This entails investigating the
Political, Economic, Sociocultural, and Technological issues influencing this business in order to forecast
how it will evolve in the following years.
Political Factor
In terms of political factor, the cafetate are most likely impacted by changes in the legislation under
which the business works. But we make certain that we adhere to all of the government's rules and
regulations. We constantly make certain that our café meets organizational goals without breaking any
norms or regulations.

Economic Factor
The corporation has various financial requirements in order to help the country's economy. Because the
firm is well-known in Baguio City, it may be able to compete on a global basis. Cafetate also considers
social factors by supporting arts such as calligraphy and painting. It gained a solid reputation and a
positive public image.

Socio-cultural Factor
In terms of sociocultural factors, coffee can have a positive or negative impact on health. Because
cafetate's main product is coffee, it may cause sleep difficulties. Coffee, on the other hand, increases
metabolism, which may result in weight reduction. People who want to lose weight should increase their
coffee consumption.

Technological Factor
Cafetate employs cutting-edge technology to ensure that their customers receive high-quality products
and services. Cafetate is able to manufacture several types of coffees and increase earnings thanks to
advancements in technology.

Key success factors

The keys to success in this business are:
Great product: Our products include food, coffee-based drinks, and entertainment. They must be of high
quality and worth.
Service: Our customers pay to have a nice time. If the service is not of the top standard, their experience
will suffer. Every member of the team will be polite, efficient, and attentive.
Marketing: We will need to target our consumers frequently and early. While the company is at a
convenient and central location.
Management: We'll need a better handle on food, beverage, and labor expenses. The café experience must
be offered in a way that encourages not only repeat business, but also word-of-mouth referrals to others.

Long term prospects

Coffeehouses had also traditionally not yet been deemed "kid-friendly." To address this issue, the
caffetate has long-term (5-year) plans to establish a second coffee shop: an indoor play area/coffee bar.
This idea provides a chance for parents and families to interact and relax with other adults while their
children enjoy the indoor playground facilities. We also hope to extend our business nationwide in five
years since we feel we have something unique to offer and want to share this experience with as many
people as possible without sacrificing quality.