SWOT Analysis of Mustang Bistro

Sierra Wilson

Plaster School of Business: Missouri Southern State University

MGMT 452: Strategic Management

Dr. Carson

March 5, 2023
 On February 15, 2023, I interviewed Amanda C., one of the owners of the Mustang

Bistro, which is located in the town of Anderson, Missouri. Anderson is inside of McDonald

County, which is situated near the Missouri/Arkansas border. The Mustang Bistro is a mom-and-

pop cafe that serves breakfast and lunch, as well as specialty coffees and other drinks. I decided

to conduct a SWOT analysis on this company because it has never been done, and I knew the

information I received from the analysis would help the business. To explain the SWOT analysis,

Morris states, “On the internal side, you will want to gain a sense of the organization’s strengths

and weaknesses; on the external side, develop a sense of the organization’s opportunities and

threats” (2019, p. 8). Most of the information about the strengths and weaknesses came from my

interview with Amanda. The information about the opportunities and threats was retrieved from

government publications and articles about SWOT analyses in the food industry. The goal of this

report is to “match the company’s resource strengths and market opportunities, correct important

weaknesses, and defend against external threats.” (Morris 2019, p. 9).

Strengths

1. The Mustang Bistro has a relatively flat organizational structure.

- Due to the small number of personnel needed to run the Mustang Bistro, a flat

organizational structure is used. There are many benefits to having a flat structure,

including quick and efficient communication with employees, as well as allowing

employees to have a voice in the business decisions that are made. 

2. Drinks are catered to customers' desires (Momin 2023)

- The Mustang Bistro is able to cater to what the customer would like to drink. For

example, when ordering specialty coffee, the customer can ask for certain syrups

or milk in their coffee to make it their own. 

3. The Mustang Bistro is a very innovative and creative business. 

- For example, the Bistro is able to make unique breakfast and lunch items.

Currently, the company is making green frappe drinks in honor of Saint Patrick’s

Day. Also, the restaurant sells specific foods on certain days of the week, which

helps the managers to monitor food waste and builds customer loyalty. 

- The Mustang Bistro sold sugar cookie decoration kits around Christmas time.

Aside from increasing income, the Mustang Bistro was able to sell products to

children who may not normally want anything from their business. 

- Morris states, “...when you can identify certain strengths that set an organization

well apart from actual and potential competitors, that strength is considered a

source of competitive advantage” (2019, p. 8). The Mustang Bistro has found a

strength and a competitive advantage in creativity and innovation because there

are not any other food/coffee shops like them in McDonald County. 

4. The Mustang Bistro celebrates successes in the community. In doing so, the business is

able to advertise its food and beverages as well as show that the small business owners

truly do care about the county. 

 - For example, the business gave free coffee and breakfast to the High School

Wrestling Team for doing outstanding in their competition and winning the state

championship. 

- Franchise businesses in the community, such as Sonic, are not able to give out

free food. Since the owners of the Mustang Bistro are in the restaurant every day,

they are able to make those types of decisions, which can have a lasting impact on

their brand image. 

5. The Mustang Bistro has a strong social media influence (Shaw). 

- The Mustang Bistro has been able to share its new menu items and its specials

with the community through Facebook advertisements. Being able to see the food

and specialty coffee items the business is selling helps to bring in more customers

and, therefore, more revenue. 

6. The Mustang Bistro serves healthier, non-fried food, as opposed to competitors. 

- Almost all of the other restaurants in McDonald County serve mainly fried food.

There is a Sonic and a family-owned Mexican restaurant both down the street

from the Bistro. The Mustang Bistro serves freshly made breakfast foods in the

morning and healthy sandwiches in the afternoons. In being a healthier option

than its competitors, the Bistro has a strength that not many other businesses in

the county possess. 

 7. The Mustang Bistro is in a good, strategic location. It is located on a major road that

people use to get to work and to school. They have both a drive-thru and dine-in option,

as well as a relatively large parking lot for customers.

- While many other restaurants in town have a drive-thru (or carryout) and dine-in

option, the Mustang Bistro has a much better set-up than other places. 

- For example, once a car is in the Sonic drive-thru, there is no way to get out. The

car is blocked in, which means the people in the car may have to wait twenty

minutes for their food and can not drive off if they get irritated. 

8. The owners and employees of Mustang Bistro understand the importance of good

customer service. 

- In my interview with Amanda, she said that one of the business's strengths is

customer service. She explained “Customer service is make-it or break-it because

you can mess up on an order and they will come back if you provide them a good

service. But they won’t if you’re mean to them” (PI). 

Weaknesses

1. The managers of the Mustang Bistro do their best to combat food wastage, but it is still

an issue. Food wastage is a problem because, from a business perspective, wasted food is

lost revenue. 
2. The owners of the Bistro do not have any recycling bins. In my interview, Amanda told

me that they had tried to recycle, but it was difficult because there is not a recycling

facility nearby (PI). Not being able to recycle adds to the waste that the business is

creating, which can cause a negative image of the company to the public. 

3. The owners and stakeholders of the Mustang Bistro rely on a smooth supply chain. 

- “Such high reliance on a smooth supply chain creates problems for businesses.

Any sort of disruption caused in the supply chain can result in shortages, leading

to losses for businesses operating in the food industry” (Momin 2023). 

- The global population has witnessed firsthand why relying on a smooth supply

chain is a weakness due to the disruptions caused by COVID-19 and the issues

that occurred after the Evergreen ship got stuck in the Suez Canal. 

4. The Mustang Bistro appeals to a specific sector of McDonald County residents - mainly

people who want healthy breakfasts, sandwiches, and specialty coffee instead of fried

foods and plain black coffee. 

5.  Mustang Bistro’s current building does not have the ability to expand for more growth,

which is a definite weakness. In my interview with Amanda, she told me that she sees the

size of the building as an issue because she does not think they will be able to gain more

business if the building is not able to accommodate more people (PI).

Opportunities

1. The owners need to continue to research ways they can minimize their food wastage. One

possible solution could be that any food that is about to expire can be taken to a homeless

shelter or donated to families in the community in need. 

2. Tourism Industry (Shaw)

- McDonald County is a big hub for canoeing and camping in the summertime. The

Mustang Bistro could use this opportunity to draw more customers in by posting

advertisements on Facebook, as well as on bulletin boards at the campsites around

town. 

3. The Mustang Bistro had success with its Christmas cookie decoration kits. An

opportunity could be that they do more kits or fun activities for families in conjunction

with other holidays, such as a valentine's cookie kit or an Easter basket-making contest. 

4. According to Censusreporter.org, the mean travel time for citizens of McDonald County

to get to work is about twenty-five minutes (U.S. Census Bureau 2021). The Mustang

Bistro can use the commute as an opportunity to make more breakfast and specialty

coffee sales. For example, instead of advertising their biscuits and gravy (which is

difficult to eat on the go), they could advertise their muffins and breakfast sandwiches. 
 5. According to the IBISWorld industry report, “Per capita coffee consumption will increase

in 2023, representing a potential opportunity for coffee and snack shops” (Le, 2023).

- Since the Bistro has a variety of specialty coffee options, this could be a great

opportunity to grow sales and market share. 

6. The IBIS World report also indicates that “As individuals will seek out coffee shops as a

place to work and be productive, many coffee shops need to shift their focus to aesthetics

and function to attract these consumers” (Le 2023). 

- If the Mustang Bistro could make a room that has free wifi, comfortable chairs, a

few tables, and electrical outlets, high schoolers, and working adults could use

that space as a study/work area, which would be a great opportunity for growth

while enhancing the image of the Mustang Bistro. 

Threats

1. One threat to the business is the falling growth rate of the population (Momin 2023). Low

growth rates can contribute to lower demand for food services, which in turn results in

decreased revenue. 

2. The pandemic and its aftershocks. 

 - The pandemic led to many people not going to restaurants or ordering home-

delivery food services. This caused a threat to the life of the Mustang Bistro, as it

had only started a few months prior to the shutdown. The business cannot afford

to lose any customers. 

- “Threats include factors beyond your control that could place the strategy, or the

business, at risk. These are also external—managers typically have no control

over them, but may benefit by having contingency plans to address them if they

occur” (Morris 2019, p. 9).

3. Inflation (Shaw)

- An increase in prices has caused less discretionary spending, which means that

people are trying to save their money instead of going out to eat. Inflation also

increases the variable costs of the business, such as expenses for food and

supplies. Consequently, the Bistro is forced to raise the prices of its goods. 

4. Competitors (Shaw)

- There is a business that has recently moved into the McDonald County area that

have decided to open a specialty coffee shop. While this shop is about thirty

minutes away, it is still in the county. The venue is aesthetically pleasing and has

soft chairs and an area in which customers can read a book. It is also located on a
 main road where commuters can easily stop. This type of shop is a direct threat to

the Mustang Bistro because it offers the same type of food and drinks. 

5. According to Censusreporter.org, around eighteen percent of people who live in

McDonald County are below the poverty line. The lack of discretionary income can

greatly impact the Mustang Bistro and can be a threat to the business’s bottom line (U.S.

Census Bureau 2021). 

6. According to the IBISWorld Coffee and Snack Shop Industry Report, a threat to the

company is that wages have increased, which causes a lower number of profits (Le 2023).

- Workers in the United States are entitled to receive a minimum wage of $7.25 per

hour, and the state minimum wage is higher than this amount. 

7. The IBISWorld report explains that “The world price of coffee has been highly volatile

because of growing demand and supply shortages” (Le 2023).  

- If the Mustang Bistro has difficulty receiving coffee to sell, it could threaten their

business, cause customers to go to other coffee places, and significantly affect

their bottom line. 

8. The IBISWorld report also states that “The level of regulation is medium and the trend is

increasing” (Le 2023). 

 - Since the Mustang Bistro has never been regulated, any increase in regulation

could significantly impact the firm. Adjusting to new laws can cost businesses

money, time, and effort. 

Personal interview (PI), 15 February 2023, Amanda C.

 References

Le, Thi. (2023, January). Coffee & snack shops in the US (IBISWorld Industry Report 72221B).

Retrieved from IBISWorld database. Accessed 15 February 2023.

Momin, Abdul. (2023, January 3). SWOT analysis of the food industry in the 21st century.

PESTLE Analysis, SWOT and Business Analysis Tools. https://pestleanalysis.com/swot-

analysis-of-the-food-industry/. Accessed 28 February 2023.

Morris, John. (2019). Strategic Management 2E. Creative Commons.

https://open.oregonstate.education/strategicmanagement2e/front-matter/introduction/.

Shaw, Ahsan. (n.d.). SWOT analysis of food and beverage industry. Business Management &

Marketing.https://swotandpestleanalysis.com/swot-analysis-of-food-and-beverage-

industry/. Accessed 28 February 2023.

U.S. Census Bureau (2021). American community survey 5-year estimates. Censusreporter.org.

Retrieved from Census Reporter Profile page for McDonald County, MO

http://censusreporter.org/profiles/05000US29119-mcdonald-county-mo/. Accessed 17

February 2023.