Casper & Gambinis- 2010

Casper & Gambinis pleasant eating out experience is fulfilled through friendly and customized delivery of gourmet meals and specialty coffee-based drinks in a contemporary and elegant setting that is stimulating for the senses and liberating for the mind. Casper & Gambinis offers an all-day menu of a rich variety of breakfast bundles, sides to share, sandwiches, salads, weekly features, pizzas, gourmet burgers, hot cuisine, homemade desserts, and award-winning coffee drinks. It is the perfect socializing place for the typical urban sophisticated young and middle-aged professionals and consumers. Casper & Gambinis is experiencing growth through various routes. However, it did and continues to do so under extremely volatile global economic conditions, regional instabilities and local political and security difficulties. A strategy is needed to sustain profitable growth for the future. History The initial investment was made in 1996, when a sandwich delivery service was set up in Ashrafieh. The original menu comprised of tasty salads and sandwiches, instantly prepared and delivered. In May 1998, and upon great enthusiasm from the business community for the concept, the first C&G coffeehouse saw the light in Jal El Dib. Soon, it became a favorite gathering place for a wide variety of people because of its nice atmospherics and its unmatched delicacies. C&Gs second branch was the first eating establishment to acquire a prominent site in the newly rebuilt downtown Beirut in November 1999. After five years of operating nationally, C&G went international for the first time upon the opening of its first franchise operation in Kuwait. C&G then opened in Saudi Arabia in March 2003. This Jeddah branch is the largest outlet till date. Building on its reputation and successes, openings continued both inside and outside Lebanon to include more than 22 branches distributed across Lebanon, Saudi Arabia, Kuwait, Egypt, Jordan and Qatar. In January 2010, the latest franchise has been sold to Syria and a new outlet will see the light in Damascus towards the Fall of 2010. Other signed ventures include outlets in United Arab Emirates, Qatar, Bahrain, Romania and South East Asia. Russia is planned to be the next destination for growth between 2010 and 2012. Mission/Vision/Value Statements Casper & Gambinis vision statement states the following: Through our continuous development and determination to expand within different cultures and countries, we, at Casper & Gambini's will successfully spread our distinctive all-day restaurant-caf concept worldwide. This vision statement acts as a building bloc for its mission which centers around its commitment to offer high quality wholesome food and beverages in an environment that is both stimulating and liberating with warmth and passion, delivering a genuine experience. C&G aims at providing customers a reliable, qualitydriven service, promoting a unique coffee culture by delivering quality coffee drinks, and serving as a hub where diverse target consumers meet in a casual setting to satisfy their different cravings, all day long. The companys credo is a meticulous statement of values, which every casperer and gambinian fully understands and delivers. It relates C&G to it main stakeholders, by mentioning that: We dont have owners, we have ambassadors We dont have chefs, we have nutritional artists We dont have waiters, we have culinary guides We dont have guests, we have partners in success

Business Organization Casper & Gambinis holds a portfolio of related businesses, including home and office delivery service, corporate catering, C&G station as well as C&G Terrace. These are simply adaptations of the same concept made to suit the demands of the local conditions of the markets in which they are situated.

Other business concepts include Silver by C&G, Eatalian, Falafel Nadia and From The Tree. Silver opened its doors in Beirut Souks in April 2010 and can be considered an off-shoot of the Casper & Gambinis chain of restaurant-cafs. Eatalian is a casual modern Italian restaurant that serves authentic Italian dishes, revisited and modernly presented. The flagship branch opened in Kaslik Lebanon in 2008 and the second branch opened one year later on Abdel Wahab Street, Achrafieh. Falafel Nadia offers a unique selection of toppings and fillings that customers can choose from to accompany their falafel meals. The first Falafel Nadia outlet opened its doors in the prestigious 360 Mall in Kuwait. From The Tree is a new concept that opened in the first quarter of 2010 in Beirut Souks, Lebanon. The concept gives customers a memorable, fun-filled and interactive experience, coupled with a unique offering. It specializes in frozen yogurts, freshly squeezed fruit and vegetable juices as well as delicious made-to-order fruit and yogurt smoothies, juices and natural energy boosters. It is worthy to note that C&Gs food department accounts for 75% of total sales. Management believes that focusing on quality drives sales, controls costs, increases profits and builds trust with guests. For the purpose, C&Gs invest heavily in research and development to update menus in ways that meets trends and changing customer demands in local markets. The specialty coffee business at C&Gs is doing equally well. The coffee success story at C&Gs is the result of its selected coffee beans coupled with the signature coffee blend and the well-trained staff. The highest quality beans are selected from across the world and roasted in The Roaster, a sister company to C&G. C&Gs has been awarded the 1st Mediterranean Barista Cup in Milan, Coffee Champions since 2001, and the Best Espresso Blend in the European Team Coffee Challenge in Moscow among other awards. Internal factors Marketing The main marketing objectives pursued by Casper & Gambinis are creating strong brand equity, strengthening its positioning all in good taste, enhancing and expanding C&G derivatives as well as creating a unique coffee culture. Marketing strategies are developed in light of the market and customer trends as well as the companys objectives and resources. Both below-the-line and abovethe-line activities are developed to achieve its marketing objectives. The former mainly includes sales promotions, giveaways, and surprise invitations to ensure repeat visits, positive word-of-mouth, customer retention and loyalty. The latter include more media coverage and exposures, press conferences, website and magazine advertising to increase brand equity. Marketing plans are continuously reviewed and updated in light of table turnover, average check amounts, and customer counts. Human Resource Attracting and maintaining a dedicated workforce is a must for every hospitality business. Casper & Gambinis has to deal with personnel issues both locally and in the international markets in which they operate. Locally, management has to deal with the issue of immigrating middle and upper level managers who look for better jobs and salaries outside Lebanon. Shortages of lower-level employees, especially in the summer season when the demand is particularly high, should also be tackled. For this reason, they rely on part-timers and university students. As to the regional markets in which they have franchises, they recruit employees either through the local agencies or directly through their Worldwide Office Human Resource Department which visits the franchisees markets or other Far Eastern markets looking for potential job candidates. Employees are selected based on knowledge, skills and abilities. Education and background experiences are also key to higher job positions. Customized training and development programs are continuously launched to provide for specific positions requirements. Reward programs are implemented at all levels to retain a motivated workforce. Merit-based pay programs are carried out to compensate high achievers for meeting their preset targets and key performance indicators. Internal promotions are highly used to match job openings with top performers.

Franchising Operations Casper & Gambinis is expanding mainly through franchising operations. C&G is considered a strong franchisor, because of the quality of assistance and support given to franchisees at every step of the way. C&G Worldwide Ltd. controls the set up and management of all franchises across the region. C&G handles the initial location buildup and launching phase, and offers full consultancy in the areas of marketing, human resource, operations management, and cost control. Although there is a common theme as to all C&G outlets, each location has its own identity and menus are customized to fit local tastes and preferences. A regional supplier called MainSpring provides all Lebanese and regional franchises with materials which ensures a consistent level of service. Coffee, syrups and teas are the only ingredients that have to be sourced from Lebanon. The rest are bought from the local markets of the franchisees after the F&B director conducts a scrutinized evaluation of different alternatives to ensure best quality and to check for set specifications. External Factors Industry Lebanon has passed through and continues to suffer from many difficulties. These are mainly embedded in its unstable political and economic regimes with all their repercussions. It also suffers from the scarcity of statistical data and information which are highly needed for industry and company analysis, demand estimations and forecasts. The high euro prices directly affect the food and beverage costs, since most of the raw materials are imported from Europe. Despite the facts, the food and beverage industry has managed to grow. This is probably related to shifts in lifestyles, an energetic tourist industry, a lively nightlife and a proliferation of cuisines and concepts. Demand for ethnic food, especially modern Lebanese food prepared and presented in a trendy design and ambiance is growing. As well as the trend for healthy, low-calorie, and organic food and beverages is increasing. Thus, consumer preferences are shifting from quick-service restaurants to a more casual experience with the demand for quality food on the rise. As to the GCC market, 2009 figures show that the market for casual dining and quick service is estimated to be worth 2.1 billion dollars with an average yearly growth of 12%, anticipated to be maintained for the coming five years. Rising incomes, high population growth(estimated to be around 3.3% across the region), and a trend for urban living and international dining habits make an ideal setting for C&G expansion. Moreover, the illegality of consuming alcohol across the region renders restaurants a main leisure and socializing option. Competition The company aims at being nationally responsive and globally competitive. C&G has to compete both within the restaurant and the coffeehouse sectors. C&G does not have direct competition for its unique all-day restaurant-caf. It is considered as a benchmark in the industry. However, any entry of a new restaurant or caf is considered a potential threat, especially those competing at the highend of the market such as Linas, Paul, DT, SO, Al Mandaloun caf and others. Globally, the franchise industry is witnessing big growth. It is estimated to be worth 30 billion dollars, with 25% average annual growth. With the prolific growth of shopping malls in the region, the need for food and beverage facilities is highly needed to complement the retail experience. However, global competition is more intense than ever, especially with the global economic crisis. Gareth Parry, president of Global Franchise Marketing and CanFranGlobal Consultants, believes that restaurant franchises, especially from North America, are suffering, allowing more room to negotiate. Entrepreneurs are, therefore, seeking bigger-name brands and are negotiating harder on fees. Nowadays, the industry is inhabited by shrewd businessmen who demand the franchise concept to demonstrate robustness, brand identity, sound financial results, sustainability and strong franchisors commitment and support.

REQUIRED: 3

1. SWOT analysis (with the Performance/Importance table, Porter's 5 forces, PESTEL and the impact/probability of occurrence table) 2. TWOS matrix 3. Define the company's strategic direction (Porter's 3 generic strategies, Value proposition strategies and the military warfare strategies)

The assignment is due on Thursday 29/3 at 10:00 am.